Commercial Lease – Dilapidations


In commercial property, Dilapidations principally concerns the Tenant’s failure to observe certain express and implied obligations within the lease, thereby committing a breach of covenant.  In general terms, this falls into four main categories:

  • Repair
  • Decoration
  • Reinstatement
  • Statutory Compliance

The ‘Yield Up’ clause is also key to reiterating the requirements imposed upon the Tenant elsewhere in the lease, as well as outlining further conditions to ensure the premises are handed back to the Landlord with vacant possession, and in a properly repaired, decorated, reinstated and cleansed state compliant with current regulations.