Dilapidations and Exit Strategy: Avoiding Disputes at Lease End

Overview

Dilapidations claims arise when a tenant is alleged to have breached repairing, decorating or reinstatement obligations. These claims can be significant and may affect the timing and cost of exit.

Key stages where issues arise

• Pre-break planning: ensuring break conditions are satisfied (timing, rent, vacant possession, repair obligations if applicable).
• Lease expiry: terminal schedules, inspections and negotiations.
• Reinstatement: removal of alterations and making good.

Common tenant risk areas

• No schedule of condition at lease start, leading to broader repair claims
• Failure to address reinstatement obligations early
• Underestimating cost and timescales of works required to comply

Common landlord risk areas

• Poor evidence of loss and overreaching claims
• Lack of clarity on intended works and valuation impact

How Royce Legal can help

Royce Legal can advise on lease interpretation, break compliance strategy, dilapidations negotiation, and documentation that supports a controlled and cost-effective exit.