Dilapidations
MGRA advises landlords and tenants on dilapidations. We compare the lease and related obligations with what exists at the property — including repair, decoration and alterations — and with the evidence available, then advise on the dilapidations position and the next appropriate step.
Liability, strategy and the next step.
Dilapidations concern alleged breaches of lease covenants that relate to the condition of the premises during the term or at the end of the tenancy.
The instruction is advice on liability, lease interpretation, strategy, negotiation, settlement and reinstatement decisions. MGRA acts for the party instructed. A Schedule of Dilapidations may be prepared where that is the appropriate output; it is not the whole of the work.
Questions clients ask
These questions and answers explain our general approach. The scope of our services is agreed for each instruction.
Core Dilapidations
What are dilapidations?
Alleged breaches of lease covenants about the condition of the premises during the term or at the end of the tenancy — typically repair, decoration, reinstatement and yield-up. MGRA advises the party instructed on the position and the next step.
What is a Schedule of Dilapidations?
A professional document setting out alleged breaches of the lease and the remedies said to be required. It may include costing. Interim and terminal schedules are the same kind of document used at different times.
Do you act for both landlords and tenants?
Yes. The work is strategy and the next appropriate step. Landlord work may include a schedule where that is required; tenant work includes response, yield-up and lease-end strategy.
Lease and liability
Does every defect become a dilapidations liability?
No. Poor condition is not automatically a breach, or a liability of the party instructed. MGRA starts from the lease, then the property, then whether the standard is met, then what work follows.
How are tenant alterations dealt with?
Identify the alteration, then check it against the lease and any Licence to Alter. Then classify it: retain, remove, reinstate, or whether further advice is needed.
What is reinstatement?
Putting the premises back — often after alterations — as the lease or licence requires, where that obligation applies.
What is the difference between a Schedule of Condition and a Schedule of Dilapidations?
A Schedule of Condition records observed condition at a stated time. A Schedule of Dilapidations assesses alleged lease breaches and the remedies required.
Cost and settlement
What is a quantified demand?
A statement setting out and supporting the landlord’s financial claim for dilapidations. It explains the losses claimed and how they have been calculated.
Is the cost in a schedule the same as the final settlement?
No. The schedule assesses the remedial works. The financial claim and any settlement also take account of the landlord’s loss, intentions for the property and the supporting evidence.
When should a landlord or tenant start dealing with dilapidations?
Early enough for the evidence, documents and any works to be considered before lease expiry, a break, or service of a claim.