When the terminal schedule is served
Terminal schedules are typically served at lease expiry, or within a short period afterwards. The Pre-Action Protocol expects the landlord's quantified demand to follow within a reasonable period, usually 56 days of the schedule, so the schedule must be inspection-ready and evidentially complete at the point of service.
Scope of a terminal schedule
The terminal schedule covers the tenant's obligations to:
- Repair, in accordance with the repairing covenant
- Decorate, where the lease imposes a decorating obligation
- Reinstate any alterations the lease requires to be removed
- Yield up in the condition required by the lease
- Comply with statutory obligations imposed on the tenant
From schedule to settlement
Following service, the landlord typically progresses to a quantified demand setting out the loss claimed. The tenant's surveyor responds, a Scott schedule is prepared to record positions on each item, and the parties negotiate to settlement, with the Section 18 cap as the ultimate recoverable ceiling.