Why Early Claims Are a Strategic Move
Interim dilapidations are claims served during the term of a commercial lease rather than at the end. While less common than terminal dilapidations, they are becoming increasingly prevalent, particularly on longer leases or where the condition of a property is visibly declining. For landlords, they are a way to protect the value of an asset. For tenants, they are often the first sign that a more aggressive exit strategy may be forming.
Although interim claims can feel premature, they should not be ignored. They are usually deliberate and calculated.
Why Landlords Use Interim Dilapidations
Landlords typically serve interim dilapidations where they believe disrepair is affecting the property’s value or where they wish to compel remedial works before lease expiry. In some cases, the concern is genuine. In others, the aim is to apply pressure or establish a paper trail that strengthens a later terminal claim.
Unlike end-of-lease claims, interim dilapidations can require actual works to be carried out during occupation. This can disrupt operations, impact cash flow, and alter the balance of power between landlord and tenant.
A Higher Legal Threshold
The legal bar for interim dilapidations is higher than for terminal claims. The landlord must demonstrate that the disrepair is sufficiently serious to justify intervention during the lease term and that damages are recoverable at that stage.
Importantly, the statutory protections under Section 18 of the Landlord and Tenant Act 1927 still apply. Even during the lease, a landlord cannot recover more than the actual loss in value caused by the disrepair. This often limits the scope of interim claims significantly.
The Importance of a Measured Response
An interim schedule should be met with analysis rather than urgency. Each alleged breach must be reviewed against the lease obligations, the current condition of the building, and the wider commercial context.
At Stokemont, we assess whether the claimed works are genuinely required, whether costs are proportionate, and whether the claim is being used strategically rather than substantively. In many cases, a structured, evidence-led response is enough to halt the process before it escalates.
Protecting the Exit Before It Begins
Interim dilapidations are rarely just about the present condition of the building. They often set the tone for lease expiry. Early advice preserves leverage and prevents interim issues from becoming entrenched terminal liabilities.
Speak to a Dilapidations Expert at Stokemont to manage risk before it compounds.
