Understanding the Legal Implications of Dilapidations in Commercial Leases

JOE THORNTON
Jul 23
3 min read

Dilapidations are often a source of confusion – and contention – in commercial property leases. Whether you're a landlord seeking compensation for disrepair or a tenant approaching the end of your lease, understanding the legal and practical implications of dilapidations is crucial for protecting your interests and avoiding unexpected costs.

At Stripout London, we regularly support clients through the strip-out and reinstatement phases of dilapidation claims. Here’s a comprehensive look at the legal landscape surrounding commercial dilapidations and how to navigate it effectively.

🧾 What Are Dilapidations?

In the context of commercial leases, “dilapidations” refer to breaches of lease covenants relating to the condition of a property. These typically involve:

Repairs not completed
Alterations not removed
Failure to redecorate or maintain the premises

At lease end, the landlord may issue a Schedule of Dilapidations, outlining the remedial works required or seeking a financial settlement to cover these costs.

⚖️ The Legal Framework in the UK

Dilapidations are governed primarily by:

The Lease Terms – which outline the tenant’s responsibilities during and at the end of the lease.
The Dilapidations Protocol (pre-action protocol) – published by the Civil Procedure Rules to encourage fair and transparent resolution of disputes.
Case Law – which helps interpret grey areas (e.g. what constitutes “reasonable repair”).

💡 Did you know? The Landlord and Tenant Act 1927 limits a landlord's claim to the actual loss suffered, and not simply the cost of repairs, protecting tenants from over-inflated charges.

🧱 Common Issues Leading to Disputes

Some of the most frequent dilapidation disputes arise from:

Wear and tear vs. neglect
Unapproved alterations (e.g. partitions, cabling, mezzanines)
Failure to strip out tenant fit-outs
Inadequate reinstatement of the original condition
Late or vague documentation issued close to lease expiry

This is where Stripout London plays a vital role. We help tenants meet their dilapidation obligations by professionally removing all non-original alterations and restoring the space to a lease-compliant state.

💼 Tenant Responsibilities: What to Prepare For

If you're a tenant nearing the end of your commercial lease:

Review your lease – Understand your specific obligations around repairs and reinstatement.
Plan early – Engage a surveyor or dilapidations expert up to 12 months before lease end.
Conduct a dilapidations assessment – Identify issues and address them before a landlord's claim.
Use a professional strip-out company – Ensure compliance and avoid inflated landlord repair estimates.

👉 In many cases, proactive strip-out and minor repairs are far more cost-effective than waiting for a landlord’s claim, which may include markups, fees, and contractor costs.

🏢 Landlord Considerations

For landlords, understanding dilapidations means:

Issuing a Schedule of Dilapidations in a timely manner
Being realistic in cost expectations
Considering the mitigation of loss (e.g. if the building is to be refurbished anyway)
Providing supporting evidence (quotes, surveys, etc.)

According to Bradley-Mason, poorly documented or excessive claims often lead to disputes or settlements below the amount initially requested. 👉 Source

🧰 How Stripout London Supports Dilapidation Projects

As a trusted dilapidations contractor in London, we:

Remove tenant-installed fixtures and partitions
Strip out floor coverings, ceilings, mechanical systems
Ensure HSE-compliant waste removal and site safety
Collaborate with legal teams and surveyors to ensure accuracy
Carry out repairs and reinstatement works
Install new floor coverings and ceiling finishes
Carry out making good and decorations
Undertake statutory compliance and validations

Our goal is to minimise legal and financial risks for both landlords and tenants while delivering clean, reinstated spaces ready for reuse.

✅ Final Thoughts

Understanding the legal implications of dilapidations in commercial leases can protect tenants from costly claims and help landlords maintain their assets effectively. By acting early and partnering with a trusted dilapidations contractor like Stripout London, you can avoid disputes, reduce costs, and exit a lease smoothly.