A schedule of condition at lease commencement documents the demise's starting state. When dilapidations are served years later, it's the tenant's strongest evidence. Most tenants skip it. Here's why they shouldn't.
A schedule of condition is a photographic and written record of the demise's condition on the day the tenant takes occupation. It establishes the 'starting point' against which the lease-end repair obligation is measured.
Standard commercial lease repair clauses require tenant to 'keep' or 'maintain' the demise in good condition. Without a schedule of condition, the landlord's default assumption at lease end is that the demise started in perfect condition — and the tenant is responsible for all defects.
With a schedule of condition, the tenant's obligation is limited to maintaining the demise in the documented starting condition. Pre-existing defects are excluded from dilapidations.
Typical commercial schedule of condition cost: £1,500–£4,500 for 5,000–15,000 sqft. Delivered within 2 weeks of instruction. Compare to dilapidations settlements routinely saving £30k–£300k+.
Instruct your surveyor before lease completion. Walk the demise with the landlord's representative ideally.
Annexed to lease as a schedule. Forms part of the enforceable lease document.
Repair clause amended to reference 'the schedule of condition annexed'.
Schedule of condition available through sister practice Hampstead Chartered Surveyors. See also Dilapidations tenant guide.
No — it must be at lease commencement. Once the lease is signed without one, that defence is gone.
Yes — when annexed to the lease and referenced in the repair clause, it's a binding limitation on the tenant's dilapidations exposure.
Measured survey and fixed-price quote within 10 working days.