Flat roof dilapidations at the end of a commercial lease
Updated 23 October 2026 · SEO Dons Editorial
What do dilapidations mean for a flat roof?
Dilapidations are the repair and reinstatement liabilities a tenant faces when a commercial lease ends. The RICS Code for leasing business premises describes them as the "defects and disrepair that the tenant will be required to deal with or pay to have remedied when the tenant vacates the premises at the end of the lease". The Dilapidations Protocol adds that the work required "will depend on the contractual terms of the lease and any other relevant documents".
So the lease itself is the starting point. The same code notes that leases of whole buildings have traditionally made the tenant responsible for repairing the entire building, while a tenant of part of a building usually repairs internal non-structural parts and pays towards communal repairs through a service charge. Which side carries the roof is covered in who pays for a commercial roof.
How does a landlord make a claim for the roof?
For commercial property in England and Wales, the Protocol sets out what a court would normally expect before proceedings start. A landlord may serve a schedule before the lease ends, but must then confirm it or serve a further one at termination.
| Step | What the Protocol expects | Timing it gives |
|---|---|---|
| Schedule of dilapidations | Breaches, works to remedy them and costings, split into repair, reinstatement, redecoration and so on | Generally within 56 days after termination |
| Quantified Demand | The sum sought and why, with works costs backed by an invoice or detailed estimate | Same timescale as the schedule |
| Response | The tenant's view on each item, endorsed by the tenant or its surveyor | Usually within 56 days of the demand |
| Meeting | Without-prejudice talks to agree as many items as possible | Generally within 28 days of the Response |
| Quantifying the loss | A breakdown based on a formal diminution valuation or actual expenditure | Before proceedings are issued |
Two timing points sit outside the Protocol. The leasing code says landlords cannot generally make dilapidations claims earlier than three years before the end of the lease, and will normally not claim where a tenant with a right to a new lease renews. The Leasehold Property (Repairs) Act 1938 also limits claims during the term on leases of seven years or more with three or more years unexpired.
What does section 18(1) of the 1927 Act cap?
Section 18(1) of the Landlord and Tenant Act 1927 caps damages for breach of a repairing covenant. They "shall in no case exceed the amount (if any) by which the value of the reversion (whether immediate or not) in the premises is diminished owing to the breach". The reversion is the landlord's interest once the lease ends. RICS gives the working rule that the amount recoverable "will typically be the lower of the" cost of the works and the fall in value.
The second limb bars damages where the premises "would at or shortly after the termination of the tenancy have been or be pulled down, or such structural alterations made therein as would render valueless the repairs covered by the covenant". For a roof, that matters if the landlord plans demolition or a rebuild. The Protocol says a Quantified Demand "should not include items of work that are likely to be superseded by the landlord's intentions for the property".
The cap covers repair covenants only. RICS says section 18(1) does not apply to obligations such as "decoration, removal and reinstatement", which follow different rules. A demand to remove rooftop plant and reinstate openings is therefore assessed differently from one about a worn covering.
How do repair-versus-replacement arguments play out on a roof?
Most roof disputes turn on scope and evidence. The leasing code warns that a covenant to repair "may by legal implication include an obligation to undertake any repairs necessary at the time the tenant signs the lease", and that unless the parties agree otherwise, poor condition at the start "is largely irrelevant". A schedule of condition is the record that can change that.
- Repair or renewal. Does the covenant reach as far as renewing a life-expired covering, or only repairing it? The Property Litigation Association lists "the difference between repairs and improvements" among the issues in dilapidations claims. The wording decides.
- Proportion. RICS says schedules should not contain "remedies that are inappropriate (for instance, replacement of items when patch-repair would be sufficient)".
- The landlord's plans. If the building is to be redeveloped or re-roofed anyway, the Protocol expects those intentions to be taken into account, and section 18(1) may bite.
For example, a tenant on a 10-year FRI lease of a warehouse has a bitumen felt roof that was already old at the start and is now life-expired, and the landlord's schedule lists full replacement. The tenant's surveyor would ask whether the covenant extends to renewal, what the roof looked like at the start, whether patch repair would do, and what the landlord intends. The figures are for surveyors and valuers. The repair or replace guide explains how a roof surveyor weighs repair against replacement.
How does tax treat a dilapidations payment?
HMRC's manual defines dilapidations as "works of repair or re-instatement for which a lessee is liable". Capital expenditure is not deductible, while deferred repairs are admissible "to the extent that the cost would have been allowable to the trader if the repairs had been executed during the currency of the lease". The wider question is in is a new commercial roof tax deductible. HMRC's VAT notice 742 says a dilapidation payment is "outside the scope of VAT". An accountant should confirm the treatment of a particular claim.
When should a surveyor or solicitor be involved?
Early. The leasing code says each party "should consult a chartered surveyor experienced in dealing with dilapidations since legal and technical issues can arise", and RICS adds that a tenant may need advice "beyond that of a building surveyor", such as a valuer's. Before a schedule arrives, a tenant can read the covenant and expiry date, find the schedule of condition, gather maintenance and inspection records, and commission an independent roof survey (see survey types and scope) so the response rests on evidence. A building owner or tenant who wants the roof's condition and remaining life assessed before lease end can send an enquiry through the form on this site.
The Law Commission plans a scoping project on "the law governing the maintenance, repair and upgrading of leased commercial buildings", including dilapidations and service charges. That is scoping, not a proposal, and nothing here depends on it.
Sources
- Landlord and Tenant Act 1927, section 18 and Leasehold Property (Repairs) Act 1938, section 1, legislation.gov.uk, checked 22 October 2026.
- Dilapidations Protocol, Ministry of Justice, updated 30 January 2017, checked 22 October 2026.
- Code for leasing business premises, 1st edition, RICS, published 20 February 2020, checked 22 October 2026.
- Dilapidations in England and Wales, 7th edition, RICS, checked 22 October 2026.
- HMRC Business Income Manual, BIM43251, BIM43260 and BIM43265, GOV.UK, checked 22 October 2026.
- Land and property (VAT Notice 742), HMRC, GOV.UK, last updated 31 December 2020, checked 22 October 2026.
- Approaching dilapidations like a pro, Property Litigation Association, 1 October 2026, checked 22 October 2026.
- Commercial leasehold, Law Commission, checked 22 October 2026.
Common questions
Can a landlord claim for the roof before the lease ends?
Only in limited ways. The Protocol allows a schedule before termination, but the leasing code says landlords cannot generally make dilapidations claims earlier than three years before the end of the lease. Where the 1938 Act applies, a landlord must also serve a notice before suing for damages while three years or more of the term remain.
Does the landlord have to replace the roof to recover its cost?
No. The Protocol allows loss to be shown by a formal diminution valuation, by actual expenditure, or by a mix of both. A landlord that has not done all the works but intends to must say which works and when. RICS describes the usual result as the lower of the cost of the works and the fall in value of the reversion.
What if the tenant renews the lease instead of leaving?
The leasing code says that where a tenant has a statutory or contractual right to a new lease, the landlord will normally not make a dilapidations claim unless the tenant declines to renew. The new lease will have its own repairing terms, so a record of the roof at renewal is still worth making.
Can a tenant pay a sum instead of doing the roof works?
Yes, if the landlord agrees. HMRC describes a composition payment as a sum paid on expiry, instead of making good the dilapidations, to get out of the obligation. Whether that costs less than doing the works depends on the roof, the lease and any section 18(1) argument, so take surveyor and solicitor advice first.