The Impact of a Schedule of Condition on a Dilapidations Claim, Guildford, Surrey

We received instructions from a Property Manager on behalf of their Client to prepare a Schedule of Dilapidations. The claim was for a commercial retail property in Guildford.

The Tenant was in occupation of the property for 20 years and the current Lease, negotiated 2 years prior, was expiring. The recent 2 year Lease included a Schedule of Condition limiting the Tenants liabilities.

We undertook a review of the Lease and Schedule of Condition and carried out a survey of the retail unit. During the inspection we assessed the condition of the demise against that recorded in the Schedule of Condition prepared 2 years before. There was little change to the demise over the recent 2 year Lease except for a few minor defects. The obligation to redecorate was also subject to the Schedule of Condition. There was no deterioration evident to the internal decorations with limited areas of external decorations which had degraded. The presence of the Schedule of Condition and limited change to the condition of the demise over the 2 year Lease, led to the claim against the Tenant being minimal.

The Schedule of Condition had been prepared by the Tenant. The Tenant was successful in significantly reducing their dilapidations liabilities in attaching the Schedule of Condition to the Lease. The Tenant was in occupation for 20 years and vacated with a very low dilapidations claim made against them.

Tim Greenwood and Associates understand how Schedules of Conditions can affect a tenants lease liability. We can advise our Clients, whether they be a Landlord or Tenant, of the issues and potential implications of Schedules of Condition in accordance with the Lease covenants.