Gibsons Surveyors

Dilapidations Services for Landlords & Tenants

Dilapidations claims at the end of a commercial lease can run to tens of thousands of pounds. Whether you are a landlord seeking to recover the cost of disrepair, or a tenant facing a schedule and a quantified demand, Gibsons Surveyors acts for both sides across Essex, London and the Home Counties — preparing and responding to schedules, negotiating settlement, and, as RICS Registered Valuers, carrying out the Section 18 diminution valuations that can cap or even defeat a claim.

Request a quote today or call 0203 963 3777 (London) / 01268 949 100 (Essex).

What dilapidations are

Dilapidations are breaches of a tenant’s repairing, decorating, reinstatement and “yield up” covenants under a commercial lease. At lease end — or, less commonly, during the term — the landlord can claim the cost of putting the property into the condition the lease required. The claim is set out in a schedule of dilapidations supported by a quantified demand.

We act for landlords and tenants

Acting for landlords

  • A terminal schedule of dilapidations setting out every genuine breach of the repairing, decorating, reinstatement and yield-up covenants, with costs.
  • A quantified demand to accompany the schedule.
  • Negotiation with the tenant’s surveyor, preparation of a Scott Schedule, and conduct through to settlement (with expert support if it proceeds to dispute resolution).
  • Early advice on Section 18 and your intended use of the property — because plans to redevelop or refurbish can materially affect what is recoverable.

Acting for tenants

  • A full review of the landlord’s schedule and quantified demand.
  • An item-by-item response — admitting, disputing, or offering a reduced figure for each item.
  • The key defences: the Section 18(1) diminution cap, supersession, betterment, an appended Schedule of Condition, and the actual wording of the lease covenants.
  • Negotiation to settle at a fair figure — claims are very often reduced substantially.

The Section 18 cap — our specialism

Section 18(1) of the Landlord and Tenant Act 1927 limits a landlord’s damages to the lower of (a) the cost of the works and (b) the diminution in the value of the landlord’s reversion caused by the disrepair. Where the landlord intends to redevelop, or to carry out works inconsistent with the repairs, damages can be reduced significantly — in some cases to nil.

Our Section 18 diminution valuations are carried out by an RICS Registered Valuer to Red Book standards, and are frequently decisive in capping or defeating a dilapidations claim. This is a genuine specialism of the practice.

The process and the Protocol

Commercial terminal dilapidations are governed by the Pre-Action Protocol for Claims in Relation to the Physical State of Commercial Property at the Termination of a Tenancy. In broad terms: the landlord’s schedule should be served within a reasonable time of lease end, followed by a quantified demand; the parties exchange Scott Schedules; and without-prejudice negotiations should be attempted before any proceedings. We work to the Protocol and the RICS Professional Statement on Dilapidations throughout — keeping you compliant and protecting your position on costs.

Types of schedule

  • Terminal schedule — served at or after lease end; the most common type of claim.
  • Interim schedule — served during the term where a tenant’s breach is serious.
  • Scott Schedule — a joint document listing each item with the landlord’s position, the tenant’s response, and the agreed and disputed figures, for dispute resolution.

Why choose Gibsons Surveyors

We are an RICS-regulated firm acting for both landlords and tenants, with offices in London and Essex and substantial commercial lease experience. Andrew Gibson is an MRICS RICS Registered Valuer, so our dilapidations advice comes with in-house Section 18 valuation expertise — the part of a claim that most often changes the outcome. We give straight, commercial advice aimed at a fair, proportionate settlement.

Our fees are tailored to the matter and quoted up front.

How it works

  1. Tell us your position — landlord or tenant — and send the lease and any schedule you have received.
  2. Inspection and review — we inspect the property and assess each item against the covenants.
  3. Prepare or respond — we serve or answer the schedule and negotiate towards settlement, with a Section 18 valuation where it strengthens your position.

Frequently asked questions

What is the difference between a Schedule of Condition and dilapidations?

A Schedule of Condition is a factual record of a property’s condition at the start of a lease, used to limit a tenant’s future liability. Dilapidations is the end-of-lease claim comparing the property’s condition against the lease covenants. A schedule of condition is one of the best defences to a dilapidations claim.

I’ve received a dilapidations schedule — what should I do?

Don’t agree or pay it without advice. Landlords’ schedules are frequently overstated, and defences such as the Section 18 cap, supersession and betterment often reduce the figure considerably. Send it to us and we’ll review it.

What is the Section 18 cap?

It limits the landlord’s damages to the lower of the cost of works or the loss in value of the landlord’s interest caused by the disrepair. Where the landlord is redeveloping, it can reduce a claim sharply. We carry out the valuation in-house.

Do you handle residential dilapidations too?

Our dilapidations work is mainly commercial, but do get in touch with the details and we’ll advise.

Do you cover my area?

We cover Essex, London and the Home Counties from our London and Essex offices. If you’re unsure, just ask.

Get dilapidations advice

Whether you are pursuing or defending a dilapidations claim, Gibsons Surveyors can act for you across Essex and London — with the Section 18 valuation expertise that so often decides the outcome. Request a quote today or call 0203 963 3777.