Interim Dilapidations Claims During a Lease

Most dilapidations claims come at the end of a lease, but a landlord can sometimes act during the term. This is the interim claim.

When you can act mid-term

Where a tenant lets the property fall into serious disrepair during the lease, and the lease allows it, a landlord can serve an interim schedule of dilapidations requiring the tenant to carry out the works. This is used where the disrepair is bad enough to threaten the value or safety of the building rather than waiting years for the lease to end.

The routes

• Require the works: serve the schedule and require the tenant to remedy the breaches.
• Self-help under a Jervis v Harris clause: many leases let the landlord enter, do the works, and recover the cost from the tenant as a debt, which avoids the section 18 cap because it is a debt claim, not damages. The lease must contain the right clause and the procedure must be followed.
• Damages: a damages claim during the term is still subject to the section 18 cap.

Weigh it up

Acting mid-term can protect the building and, through a self-help clause, sidestep the diminution cap, but it must be done strictly in line with the lease. Take advice from a surveyor and a solicitor before serving an interim schedule or entering to do works. See the dilapidations guide.

Can a landlord act on disrepair during the lease?

Yes, where the disrepair is serious and the lease allows it, by serving an interim schedule or, under a Jervis v Harris clause, entering to do the works and recovering the cost as a debt.

Does the section 18 cap apply to an interim damages claim?

Yes, a damages claim during the term is still capped, but a debt claim under a self-help clause is not.