The tenant's contractual obligation to return the premises to the lease-specified condition.
Lease economics · UK
The tenant's contractual obligation to return the premises to the lease-specified condition.
On lease end, the landlord serves a Schedule of Dilapidations claiming the cost of returning the premises to the standard required by the lease. For a high-end Cat B fit-out">fit-out in London, plan for £35-£75/sqft. Dilapidations are typically negotiated below the schedule total, but the high end should be provisioned from year one. A Schedule of Condition on lease commencement is the strongest defence.
Dilapidations is part of the lease economics vocabulary that institutional Class A occupiers, landlords, and advisers use across UK markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the UK definition alongside the global standard so cross-border occupiers can translate quickly.