Railway Arch Dilapidations Survival Guide

Dilapidations are claims made by a landlord against a tenant for breaches of repair, reinstatement, and decoration obligations under the lease. For railway arch tenants, these claims can be substantial — a typical claim for a 1,000 sqft arch ranges from £15,000 to £75,000+ depending on the condition, fit-out, and lease terms.

Terminal vs. Interim Dilapidations

Terminal dilapidations are served at or after lease expiry and are the most common type. Interim dilapidations are served during the lease term, requiring you to carry out repairs while still in occupation. Interim schedules are particularly common with The Arch Company, who may use them to enforce maintenance obligations mid-lease.

The Schedule of Dilapidations

A Schedule of Dilapidations is a formal document, prepared by the landlord's surveyor, listing every alleged breach of your lease covenants with an estimated cost of remedy. It forms the basis of the landlord's claim against you.

The Pre-Action Protocol

Since 2012, the Dilapidations Pre-Action Protocol is mandatory for terminal claims in England and Wales. The landlord must serve the schedule within 56 days of the tenancy ending. You then have 56 days to respond with a formal counter-schedule. Failure to follow the protocol can result in costs penalties if the matter reaches court. See the how to rent guide for lease basics before signing.

A Schedule of Condition (SoC) is a photographic and written record of the property's condition at the start of your lease. It limits your repairing obligation to leaving the arch in no worse condition than when you took it on. Without one, you are exposed to the full force of the repair covenant.

What a Good SoC Should Include

• Dated, high-resolution photographs of every internal surface
• Written descriptions of brickwork, mortar joints, and any existing cracks
• Condition of services — electrical wiring, water supply, drainage
• Evidence of damp, water staining, or efflorescence on brickwork
• Floor condition including any existing damage or unevenness

Cost of a Schedule of Condition

A professional SoC for a railway arch typically costs £500–£1,500 depending on arch size and complexity. This is one of the best investments you can make — it routinely saves tenants tens of thousands at lease end.

The “Put and Keep” Trap

Many arch leases contain a covenant to “put and keep in repair” the premises. Without a SoC, this means you must improve the property to a reasonable standard, not simply maintain it. The landmark case Proudfoot v Hart (1890) established that the standard of repair depends on the age, character, and locality of the building — but even this protection has limits in a lease without a SoC. Use our lease health check tool to assess your exposure.

Railway arches present unique dilapidations risks that do not apply to standard commercial units. Understanding these traps before you sign — or before a claim lands — is critical.

Victorian Brickwork Issues

Most London arches are 150+ years old with original lime mortar that is actively failing. Repointing costs for a single arch can run to £5,000–£15,000, and a landlord may argue the tenant is responsible for internal face brickwork maintenance under the repair covenant.

Damp and Water Ingress

The Arch Company's standard lease explicitly excludes liability for water ingress. This means you bear the cost of managing damp even though the source — the viaduct structure above and behind — is outside your control. Damp damage to your fit-out is your problem, not the landlord's.

Structural vs. Airspace Demise

In most arch leases, the landlord demises only the airspace within the arch, not the viaduct structure itself. You are responsible for internal surfaces but not structural brickwork. Check your demise plan carefully — if the landlord claims for structural repairs, this may fall outside your lease obligations. Your fit-out must be freestanding, not bolted to the arch walls, to avoid damage to the structure and reinstatement disputes.

Reinstatement Costs

At lease end, you may be required to strip out your entire fit-out and return the arch to shell condition. Budget for £25–£75 per sqft for basic strip-outs, rising to £50–£175 per sqft for specialist uses such as food preparation, brewing, or automotive workshops. See the fit-out cost guide for full breakdowns.

Section 18(1) of the Landlord and Tenant Act 1927 provides a statutory cap on dilapidations damages. It states that damages cannot exceed the amount by which the value of the landlord's reversion is diminished by the alleged breaches. In plain terms, the landlord cannot claim more than the actual loss in property value caused by your disrepair.

Real-World Impact

Section 18 can dramatically reduce a claim. In one documented case, a landlord's initial claim of £310,000 was reduced to a £75,000 settlement — a 76% reduction — after a diminution valuation showed the property's market value was barely affected by the alleged disrepair.

When Section 18 Helps Most

• The landlord plans to redevelop or demolish the property after your lease ends
• The landlord intends to re-let at a different specification — the next tenant's fit-out would override your disrepair
• The property has limited market value regardless of its condition, common with poorly located arches

When Section 18 Does Not Help

If your lease contains a Jervis v Harris clause (a self-help repair clause), the landlord can bypass Section 18 entirely. Under such a clause, repair costs are treated as a debt owed under the lease, not as damages — meaning the statutory cap does not apply. Always check your lease for self-help provisions before relying on this defence.

A Jervis v Harris clause (named after the 1996 Court of Appeal case) is a self-help provision that allows the landlord to enter the premises, carry out repairs, and recover the cost from you as a debt. It is one of the most dangerous clauses an arch tenant can face.

Why It Is So Dangerous

• Bypasses Section 18: because costs are recovered as a contractual debt, the statutory cap on damages does not apply
• Landlord controls scope and cost: the landlord chooses the contractor, defines the specification, and sets the budget — you pay the bill
• No diminution defence: you cannot argue that the works exceed the loss in property value
• Can be enforced mid-lease: the landlord does not need to wait until your lease expires to act

How to Respond

If your lease contains a Jervis v Harris clause, take these steps:

• Check whether the clause exists — use our lease health check tool to identify it before problems arise
• Get legal advice immediately if the landlord serves notice under this clause
• Challenge reasonableness: the works must be reasonable in scope and cost — gold-plated repairs can be disputed
• Negotiate scope before works begin: once the landlord has completed works and invoiced you, your leverage diminishes significantly

Receiving a dilapidations schedule can be alarming, but most claims settle at 30–60% of the initial figure. Here is how to respond methodically and protect your position.

1. Don't Panic — and Don't Ignore It

A dilapidations schedule is a negotiating position, not a final demand. However, ignoring it risks the landlord escalating to court proceedings under the Pre-Action Protocol.

2. Check the Pre-Action Protocol Timeline

The landlord must serve the schedule within 56 days of lease expiry. You then have 56 days to respond with a reasoned counter-schedule. Mark these dates in your diary immediately.

3. Review Your Schedule of Condition

If you had a Schedule of Condition prepared at lease commencement, compare every item on the landlord's schedule against your baseline record.

4. Check Demise Boundaries

Confirm what falls within your demise. If the landlord is claiming for structural brickwork or the viaduct itself, these items are likely outside your repairing obligation.

5. Get a Building Surveyor's Assessment

Instruct your own chartered building surveyor to prepare an independent assessment. They will review each item, challenge inflated costs, and prepare your counter-schedule.

6. Instruct a Specialist Solicitor

For claims exceeding £15,000, specialist legal advice is essential. A solicitor experienced in dilapidations can identify weaknesses in the landlord's claim and advise on the Section 18 defence.

7. Negotiate the Settlement

Most claims settle through negotiation. Your surveyor and solicitor will engage with the landlord's team to agree a figure that reflects genuine loss, not the inflated opening position.

Typical Professional Costs

Professional fees are an investment. A £5,000 spend on a surveyor and solicitor can reduce a £50,000 claim to £15,000–£25,000 — a net saving of £20,000 or more.