Terminal Schedule of Dilapidations

A terminal schedule of dilapidations is a formal document prepared by the landlord's surveyor at or after the end of a commercial lease. It lists every item of disrepair, want of decoration, and failure to reinstate that the tenant is alleged to be liable for under the repairing covenants of the lease. It forms the basis of the landlord's dilapidations claim and is the starting point for negotiation or, if settlement is not reached, litigation.

For professional support on either side of a terminal claim, see the dilapidations surveyor service.

When a Terminal Schedule Is Served

A terminal schedule of dilapidations can only be served at or after the expiry of the lease. Most landlords instruct their surveyor to inspect the property in the final months of the lease term, so that the schedule is ready to serve shortly after the tenant vacates. Under the RICS Dilapidations Protocol, the landlord should serve the schedule within a reasonable time — generally within 56 days of lease expiry — together with a quantified demand setting out the claimed costs.

Delay in serving the schedule does not extinguish the claim, but it can weaken the landlord's position and may be relevant if the matter reaches court.

What a Terminal Schedule Contains

The terminal schedule is typically set out as a table or structured document listing each breach of covenant, a description of the work required to remedy it, and the estimated cost. It is commonly organised by building element — external walls, roof, windows, internal finishes, decoration, mechanical and electrical services — and should reference the specific lease clause that the tenant is alleged to have breached.

The schedule is usually accompanied by a quantified demand, which totals the cost of all items and represents the landlord's opening position for settlement. That figure is not necessarily what the tenant will pay — it is the start of a negotiation process.

Terminal vs Interim Schedules

The key difference is timing. A terminal schedule is served at or after lease expiry and deals with the final condition of the property. An interim schedule is served during the lease term to prompt the tenant to carry out repairs before the lease ends.

• Terminal schedule— served after lease expiry, forms the basis of a damages claim, subject to section 18 caps on recovery.
• Interim schedule— served during the lease term, intended to compel the tenant to comply with repairing obligations while still in occupation. It does not result in a damages claim at that stage, but failure to act on it can strengthen the landlord's eventual terminal claim.

Some landlords serve an interim schedule several years before lease expiry to give the tenant time to plan and budget for repairs. Others wait until the final year, which often results in a larger and more contentious terminal claim.

When Should a Schedule of Dilapidations Be Served

There is no single answer. The RICS Protocol encourages landlords to serve the terminal schedule promptly after lease expiry, and to give the tenant a reasonable period to respond. For tenants, the earlier a potential dilapidations exposure is identified — ideally 12 to 18 months before lease expiry — the more options are available: negotiate early, carry out works, or instruct a surveyor to prepare a response strategy.

For an overview of the full claim process, see the dilapidations claim guide. For detail on how a schedule is structured, see the schedule of dilapidation guide.