Services / 02

Dilapidations & Schedules of Condition

Clear, evidenced dilapidations advice for landlords and tenants, from the first lease review to an agreed settlement.

  • Landlord & tenant
  • Lease review
  • Interim & terminal schedules
  • Liability assessments
  • Stay or go
  • Negotiation
  • Schedules of condition
A weathered brick wall with an arched, sage green timber door

Overview

Advice for
either side of the lease

Atlas prepare, review and negotiate dilapidations claims for landlords and tenants, during the term of a lease and at its end.

Our team of professional Building Surveyors and MEP Engineers provides strategic dilapidations advice covering the full range of property types, in locations worldwide, so a claim takes in the structure, fabric, finishes, alterations and building services in one consistent view.

Our knowledge of local markets combined with good negotiation strategies and knowledge of the legal principles governing dilapidations allows us to accurately assess future claims and achieve the best solution for our clients: recovering the correct level of claim as landlords, or minimising lease-end costs as tenants.

An office kitchen and breakout area after fit-out
  • Either sideActing for landlords and for tenants
  • Lease firstEvery item tied back to the lease and the evidence
  • Whole buildingStructure, fabric, finishes, alterations and services

What we do

Acting for
landlords and tenants

Strategic advice from the first lease review to an agreed settlement, shaped by which side of the lease you are on.

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For tenants

  1. 01

    Liability assessments

    An early estimate of your likely dilapidations liability before the lease ends, so it can be planned for, budgeted and provided for in your accounts.

  2. 02

    Stay or go

    Ahead of a break or expiry, the cost of leaving, including dilapidations, set against the cost of staying, so the decision rests on the whole picture.

  3. 03

    Responding to a claim

    A detailed response to the landlord’s schedule, testing each item against the lease, the condition of the property and the legal principles governing dilapidations.

  4. 04

    Negotiation and settlement

    Negotiation with the landlord’s surveyor to agree a fair settlement figure, or a package of works that discharges the liability.

For landlords

  1. 01

    Lease and licence review

    We start with the lease, any licences for alterations and any schedule of condition, so the claim reflects what the tenant actually agreed to.

  2. 02

    Schedules of dilapidations

    Interim and terminal schedules prepared after a full inspection, with provisional costings for each item.

  3. 03

    Serving and negotiating the claim

    Submission of the claim with your solicitor where needed, then negotiation with the tenant’s surveyor through to an agreed settlement.

  4. 04

    Reinstatement and works

    Where works are the better route, we scope them and can supervise and approve them, alongside any wider plans for the building.

Disputes. Where a claim is contested, we advise on the strength of each position against the lease and the legal principles that govern dilapidations, and work alongside your solicitor towards a resolution.

An old brick wall with a worn render patch and exposed brickwork

Schedules of condition

Record it
at the start

A schedule of condition records the state of a property in words and photographs at a fixed point in time.

Agreed before a lease is signed, it sets the baseline for the tenant’s repairing obligations and is one of the most effective ways to limit liability at lease end. Before building works, it records the condition of the property, or of its neighbours, so any later damage can be identified and agreed.

  • New leases and renewals, to set the tenant’s repairing baseline
  • Before construction or alteration works, on site and to adjoining property
  • Party wall matters, alongside notices and awards (see Party Wall & Boundary Matters)
  • Written and photographic record of each part of the building

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Who it is for

Landlords, tenants
and their advisers

We act for landlords, investors and asset managers preparing claims, and for occupiers managing their liability, across the full range of property types in the UK and internationally.

  • Landlords and asset managers recovering the correct level of claim
  • Investors protecting the value of a property at lease end
  • Occupiers planning for a break, expiry or relocation
  • Solicitors and agents who need a building surveyor on a lease end or dispute

FAQ

Common
questions

Something else you would like to know? Our directors are happy to talk through your lease.

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What are dilapidations?

Dilapidations are breaches of a tenant’s lease obligations to repair, maintain, decorate or reinstate a property. A claim sets out each breach and the cost of putting it right, and can be made during the lease (an interim schedule) or at its end (a terminal schedule).

Do you act for landlords or tenants?

Both. Working for landlords and for tenants gives us a clear view of how each side approaches a claim, which keeps our advice balanced and our negotiations realistic.

When should I take dilapidations advice?

Well before a break date or lease expiry. For tenants, early advice gives time to budget, to decide between carrying out works and paying a settlement, and to negotiate. For landlords, it means the schedule is served at the right time and properly evidenced.

Can a tenant carry out the works instead of paying?

Often, depending on the lease and the time left. We can scope the works, advise whether doing them is better value than a financial settlement, and agree the specification with the landlord’s surveyor.

What does a schedule of condition do?

It records the condition of a property at a point in time, usually at the start of a lease or before building works, so there is an agreed baseline if questions about repair or damage arise later.

Do your claims cover building services as well as the fabric?

Yes. Our building surveyors and MEP engineers work together, so claims and responses cover the structure, fabric, finishes, alterations and building services.

Having worked with Atlas over a number of years and projects I can attest to their professional, responsive and innovative skill set, always delivering what they promise. Lee and his team are a pleasure to deal with and I would not hesitate in recommending them for any pan-European instructions. First class service from first class professionals.
David LinksonPrincipal | Partner Property Consultants

Get in touch

Approaching
lease end?

Interested? Get in touch, we’d love to hear about your project. We will get back to you as soon as we can.