Dilapidations Quantum of Loss

Quantum of loss

Quantum of Loss

The purpose of a Schedule of Dilapidations is to ensure that the freeholder or the lessor does not suffer financial loss due to the lack of repair or activities of the tenant. However, the freeholder cannot claim more than the diminution in value as a result of the tenant's breaches of their repairing and other covenants. Under the Landlord and Tenant Act 1927, a Section 18 (1) Valuation can be required to assess the drop in value by the lease breaches. This assesses the valuation of the building at the end of the lease with the breaches and the value which would exist had the building been kept in good repair and yielded up accordingly.


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