Is your commercial property lease coming to an end? What you need to know about dilapidations claims

9 April 2026

As you near the end of your commercial lease, it is easy to think that you can hand back the keys and walk away.

However, it isn’t uncommon for tenants to be struck with a dilapidation claim after they leave the property. This can bring some unexpected costs after you thought all your obligations were absolved.

If you plan to vacate your commercial premises soon, you need to be clear on your end-of-lease requirements.

Our Head of the Commercial Property Department, Matthew Riding, explains when claims can arise and how to get ahead of them and avoid any unnecessary disputes.

What are dilapidations in commercial property?

Dilapidations arise when a tenant breaches their repair or maintenance obligations under a commercial lease.

These issues often relate to the condition that the property is returned in at the end of the lease.

Most commercial leases require tenants to keep the premises in good repair and return them in a clearly defined condition.

Dilapidations can arise from damaged fixtures, worn flooring, redecoration and structural repairs linked to alterations during the lease term.

When your lease nears its end, your landlord will usually instruct a surveyor to inspect the property and prepare a Schedule of Dilapidations.

This outlines the alleged breaches and sets out the works required or the cost of carrying them out.

It can also include the loss of rent while the property is brought back to its condition and the associated professional fees, such as a surveyor or legal costs.

These claims can come as an unwelcome surprise and costs can quickly escalate into tens of thousands of pounds for longer leases or larger premises.

They can even lead to ongoing disputes and even court proceedings if an agreement cannot be reached.

What should you do if a claim is made against you?

Depending on your lease terms and the timing, you might be able to carry out remedial works before you vacate the property.

However, landlords may prefer to pursue a financial settlement instead.

When you receive a Schedule of Dilapidations, you are not required to automatically accept it and you have the right to review and negotiate the claims being made.

That said, taking action without proper advice can be risky and you may end up paying for work you are not legally responsible for.

Seeking professional advice as soon as possible can help assess if the claim is fair and if they reflect your actual obligations under the lease.

How can you prepare for dilapidations?

If you want to understand your potential repair and reinstatement obligations, you should review your lease 12 to 18 months before it ends.

You can instruct a surveyor to carry out a pre-termination inspection to spot any potential issues and give you a clearer picture of the likely costs.

It is equally important to budget for potential liabilities once they are identified, so that there are no financial pressures later on.

You should also keep detailed records, including pictures, of any repairs or maintenance carried out during your lease, as this can be invaluable if any claims do arise.

If your lease includes a Schedule of Condition, this may limit your liability for defects that existed before you took occupation and this needs to be carefully reviewed.

Remember to consider any reinstatement obligations, particularly if you have made alterations to the property and plan for the time and cost this would involve.

Above all, you should avoid agreeing to settlements or undertaking major works without obtaining professional advice first.

How can we help with your dilapidations?

The thought of any claim arising is unsettling, but having the right support from the outset can ensure you fulfil your obligations and allow you to close the door on this chapter once your lease is over.

Our professional team can review your lease and any claims from your landlord do not exceed your legal requirements.

If you are approaching the end of your lease or are dealing with a dilapidation claim, contact our commercial property team.