How much does a Schedule of Condition cost?

Schedules of condition are often only considered at the last minute when a Tenant is about to occupy a commercial property on a leasehold basis. For some tenant’s the cost of a schedule of condition can seem unnecessary when they have other business and operation costs, although a schedule of condition will often be well worth it when it comes to lease expiry and any potential dilapidations claim.

How much does a Schedule of Condition Cost?

The cost of a schedule of condition will depend on a number of factors including the property type, size, condition etc. and the requirement in terms of detail.

Type – The type of property will impact the cost of the schedule of condition, as differing property types have various degrees of complexity regarding their construction and layout. For instance, industrial property’s are general open plan and simple in form which means they can take less time to survey and report. In comparison, a mixed use development can have a more complex construction type and take longer to survey.

Size – The size of the property, as expected will impact the cost of a schedule of condition owing to a larger property requiring more time to survey and report on. In addition, inclusion of external areas, outbuildings etc. will need to be considered as these will take longer to survey.

Condition – The condition of the building will impact the cost. A relatively new building will be less involved in terms of survey, whereas a building with a large amount of disrepair will take longer to record.

Detail Required – The level of detail and scope of items to be included in the schedule of condition will also impact the cost. Should the schedule of condition require specific items to be recorded or a separate mechanical and electrical assessment, then this will increase the cost of the schedule of condition. In addition, the detail of the report will impact cost, with a standard schedule of condition costing more than a photographic schedule of condition (which is simpler in format).

The cost of a Schedule of Condition will normally start at around £500 for a small/simple property and can be up to the region of £4,000-£5,000 for very large and complex buildings. Most typically, a Schedule of Condition will cost in the region of £750-£2,500.

The Cost of Not Getting a Schedule of Condition?

A typical lease will have covenants that relate to repair, reinstatement and yielding up the premises. At lease expiry, a tenant will be required to comply with the requirements of the lease and potentially be subject to a Schedule of Dilapidations. A Schedule of Condition will record the condition of premises at lease commencement and therefore limit a tenant’s liability in reference to these items. This can potentially save a Tenant £000’s as they may not have to undertake as substantial repairs to the property, or remove items which they did not install themselves. Therefore, the relatively low cost of a Schedule of Condition can easily be offset at expiry of a lease.

Sometimes a Schedule of Condition is undertaken prior to construction works, particularly in reference to Party Wall works. Should a Schedule of Condition not be undertaken then an Adjoining Owner could potentially look to claim for damage to their property that may have been present prior to the works. However, if there is no record of the condition prior to commencement of works, this can lead to dispute and a potential claim which again could easily rise to a figure in the £000’s.

By engaging a Commercial Building Surveyor to complete a Schedule of Condition a client can ensure that they are suitably covered in relation to both leasehold matters and prior to construction works.