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Dilapidations

Bemerton Consulting Limited

What Are Dilapidations?

Dilapidations refer to the breaches of covenant relating to the condition of a property during or at the end of a lease. Most commercial leases in the UK and Ireland contain specific clauses — known as covenants — that obligate the tenant to repair, redecorate and reinstate alterations throughout and at the end of the lease term. When these obligations are not met, the landlord may pursue a dilapidations claim against the tenant to recover the cost of remedying the breaches.

At Bemerton Consulting, our RICS Chartered Building Surveyors in Liverpool provide expert dilapidations advice to both landlords and tenants across the North West and Merseyside. With over 25 years of industry experience, we guide clients through every stage of the dilapidations process — from initial assessment through to negotiation and settlement.

Our Dilapidations Services

Whether you are a landlord seeking to protect your investment or a tenant looking to minimise your liability, our dilapidations surveyors can assist with the full range of services including:

  • Dilapidations assessments and liability cost reports
  • Preparation and service of schedules of dilapidations
  • Scott schedule preparation and response
  • Terminal dilapidations at lease end
  • Interim dilapidations during the lease term
  • Dilapidations negotiation and settlement
  • Schedules of condition to limit future liability
  • Expert witness services for dilapidations disputes

Terminal and Interim Dilapidations

Terminal dilapidations are served at or after the end of a lease and cover all outstanding repair, reinstatement and redecoration obligations. They represent the most comprehensive form of dilapidations claim and typically include the full cost of remedying all breaches of covenant accumulated over the lease term.

Interim dilapidations are served during the lease term while the tenant is still in occupation. They are typically used by landlords to address ongoing breaches of repair covenants and to protect the value of their property before the lease expires. An interim schedule will generally be less detailed than a terminal schedule, but it can help avoid the accumulation of serious neglect.

The Dilapidations Process

The dilapidations process follows a well-established procedure governed by the RICS Dilapidations Protocol. This typically involves an initial lease review, a detailed site inspection, preparation of a schedule of dilapidations in scott schedule format, quantification of the claim, and negotiation between the parties. Our experienced team at Bemerton Consulting manages this process from start to finish, ensuring that our clients achieve the best possible outcome.

For landlords, we take a strategic approach to both interim and terminal dilapidations, helping to maximise claim recovery while ensuring compliance with the RICS Protocol. For tenants, we focus on assessing and challenging claims, negotiating settlements, and minimising overall liability.

Dilapidations for Landlords and Tenants

We act for both landlords and tenants in dilapidations matters. Our dedicated landlord dilapidations service covers lease reviews, schedule preparation, site investigations, and claim settlement. Our tenant dilapidations service focuses on due diligence, liability assessment, negotiation, and minimising your exposure to claims.

As a landlord, we advise early engagement — typically around three years before lease expiry — to review your position and plan your dilapidations strategy. As a tenant, we recommend seeking professional dilapidations advice as soon as you receive a schedule, or ideally before your lease reaches its final years.

Why Choose Bemerton Consulting?

Based at the Cotton Exchange Building in Liverpool, our RICS Chartered Building Surveyors have extensive experience handling dilapidations claims across all sectors of commercial property — offices, retail, warehouse, leisure and transportation. We are trusted by landlords, tenants, property managers and legal professionals across Liverpool, Merseyside and the wider North West region.

Frequently Asked Questions

What is a dilapidations survey?

A dilapidations survey is a detailed inspection of a commercial property carried out by a chartered surveyor to assess the condition of the premises against the tenant's lease obligations. The survey identifies breaches of repair, decoration and reinstatement covenants, and forms the basis for a schedule of dilapidations — the formal document used to quantify the cost of remedying those breaches.

Who pays for dilapidations?

In most commercial leases, the tenant is responsible for the cost of dilapidations. This includes the cost of repairs, redecoration and reinstatement of alterations at the end of the lease term. However, the landlord typically instructs and pays for the surveyor who prepares the schedule of dilapidations, with these professional fees then forming part of the overall claim against the tenant. The specific obligations depend on the terms of your lease.

What is the difference between interim and terminal dilapidations?

Terminal dilapidations are served at or after the end of a lease and cover all outstanding repair, reinstatement and redecoration obligations. Interim dilapidations are served during the lease term while the tenant is still in occupation, typically to address ongoing breaches of repair covenants. Terminal schedules tend to be more comprehensive and include reinstatement of alterations, while interim schedules focus on repair and maintenance obligations.

Do I need a dilapidations surveyor?

Yes — whether you are a landlord or tenant, instructing a qualified dilapidations surveyor is strongly recommended. The dilapidations process involves complex legal and technical issues under the RICS Dilapidations Protocol. A chartered surveyor will assess your liabilities, prepare or respond to schedules of dilapidations, negotiate on your behalf, and help ensure you achieve the best possible outcome. Acting without professional advice often results in significantly higher costs.

Contact our team today to discuss your dilapidations requirements. We offer expert dilapidations advice across Liverpool, Merseyside and the North West.

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