Fiducia TogetherDilapidations
The bill at the end of a lease for putting the premises back.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Dilapidations are the landlord's claim for breaches of the tenant's repairing, decorating and reinstatement obligations at lease end.
Why it matters
It arrives at the worst moment — when you are also paying for a move — and it is frequently the largest unbudgeted cost of leaving a property.
What it looks like in practice
A schedule of condition agreed at the start, photographic and detailed, caps the obligation to the state the property was in. It is the single most valuable thing to negotiate.\n\nProvide for the likely cost in the accounts over the lease term rather than meeting it in one year.
What to watch out for
Alterations made during the lease with a reinstatement obligation attached to the licence. Removing a mezzanine at the end can cost more than installing it did.
Where to get proper advice
A building surveyor for the schedule and any claim. A commercial property solicitor for the lease terms.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.