Commercial Lease Exit and Dilapidations: A Practical Timeline for Landlords and Tenants

Commercial lease exit and dilapidations should be planned before the final weeks of occupation. Landlords need evidence of condition, lease obligations, future intentions and a proportionate claim strategy. Tenants need time to understand repair, decoration and reinstatement liabilities and decide which works are commercially sensible before expiry. The surveyor's technical assessment should be coordinated with legal advice because leases, notices, break conditions and the Dilapidations Protocol can materially affect strategy.

Schedule of Dilapidations 12 to 6 months before expiry

Review the lease, licences for alterations and any Schedule of Condition. Inspect the property and identify major repair or reinstatement items. Tenants can obtain specifications and budget costs while there is still time to complete work efficiently. Landlords can consider future occupation, refurbishment or redevelopment intentions because these may affect the claim.

Final months Dilapidations issues before handover

Agree access, complete priority works, retain photographs and certificates and document the condition at handover. Alterations and tenant fixtures should be dealt with in accordance with the lease and legal advice. A rushed programme can lead to poor-value repairs, incomplete reinstatement and weak evidence.

After lease termination and dilapidations claims

The landlord may serve a Schedule of Dilapidations and quantified demand. The Dilapidations Protocol expects a proportionate exchange of information and generally refers to service within a reasonable time, normally 56 days after termination. The tenant can respond and the parties should narrow issues. Repair cost, section 18 diminution and supersession must be kept distinct.

Schedule of Condition at the start still matters

Where a Schedule of Condition was properly incorporated into the lease, it can be important evidence of the starting condition and may limit repairing obligations depending on the wording. It does not automatically resolve every item, and legal interpretation remains for the solicitor.

Related AMS SURVEYS guidance

Schedule of Dilapidations | Schedule of Condition

Authoritative guidance

RICS dilapidations guidance | Ministry of Justice Dilapidations Protocol

Frequently asked questions

When should a tenant start preparing? Ideally months before expiry, not after receiving a terminal schedule. Does the landlord always need every repair carried out? Not necessarily. Lease obligations and landlord intentions matter. Does the Protocol replace the lease? No. Can a Schedule of Condition prevent all dilapidations? No. Its effect depends on scope and lease wording.

How can AMS SURVEYS help?

AMS SURVEYS advises landlords and tenants on schedules, condition evidence and practical lease-exit repair strategy alongside their legal advisers. Need advice on this issue? Request a quote for a Schedule of Dilapidations from AMS SURVEYS.