A schedule of dilapidations can run £20-£100+ per sqft. Here's how to read it, dispute unreasonable items, and complete remediation before lease expiry.
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What a schedule of dilaps actually is
A schedule of dilapidations is the document landlords issue at lease end identifying repair, redecoration, and reinstatement obligations on the tenant. It is not a quote — it is a list of works the landlord considers contractually required. The schedule is usually prepared by a Royal Institution of Chartered Surveyors (RICS) building surveyor acting for the landlord. Items are categorised as repair (fix what is broken), redecoration (restore decorative condition), and reinstatement (remove tenant alterations). Costs typically run £20-£60 per sqft for standard offices and £60-£100+ per sqft for trophy buildings with bespoke fit-outs to remove.
Items often disputed
Common disputed items: items already remedied during occupation, items beyond contractual scope (over-spec reinstatement to a higher standard than the original CAT A), items where the landlord has already let the floor on (no diminution of value), items priced significantly above current market rate, and items the lease specifically permitted (some leases allow tenant alterations to remain in situ at lease end). Engaging a tenant-side RICS surveyor early in the process is the single biggest factor in reducing dilaps cost — typical fee 1-2% of dilaps value, typical saving 20-50%.
Programme — start 4-6 months before lease expiry
A typical dilapidations programme runs: schedule received and reviewed (week 1-2), tenant surveyor appointed and disputed items challenged in writing (weeks 2-6), agreed scope and price locked (weeks 6-8), works delivered (4-12 weeks depending on scope), landlord inspection and sign-off (weeks 2-4 after completion). Working backwards, tenants should commission their surveyor 4-6 months before lease expiry. Leaving it later risks continued rent and rates after lease expiry while works complete.
Section 18(1) damages — the cap
Even if the landlord's schedule is technically valid, the tenant's liability is capped under Section 18(1) of the Landlord and Tenant Act 1927 at the lesser of (a) the cost of works, or (b) the diminution in value of the landlord's reversionary interest. If the landlord has already re-let the floor at full market rent, there may be no diminution — meaning even valid items might not be enforceable. This is why many landlords prefer cash settlements over forcing physical reinstatement.
Frequently Asked Questions
Should I engage a surveyor?
Yes — almost always. A tenant-side RICS surveyor typically pays for themselves several times over by disputing unreasonable items.
What if works overrun lease expiry?
Continued rent and rates apply daily until completion. Programme to complete 2-4 weeks before lease expiry to leave snagging time.
Can the landlord force physical reinstatement?
In theory yes, in practice rarely — Section 18(1) caps liability at diminution in value, and most disputes settle as cash payments rather than forcing physical works.
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