This schedule has been prepared by Report Kit 360 for the client named on the cover. It may be served on, and relied upon by, the other party to the lease for the purpose of the dilapidations claim or response to which it relates, but may not be relied upon by anyone else without our written agreement. The issue table above records every revision; the latest row is the current issue.

This is a terminal schedule of dilapidations for Second floor, Pennant House, 18 Chandlers Row, Marlbury, prepared on behalf of the landlord following an inspection on 08 Apr 2026. It sets out, item by item, the respects in which the premises are said not to meet the tenant's obligations under the lease, the works needed to put that right and, where costs are included, a reasonable estimate of what those works would cost.

We were instructed by Pennant House Investments Ltd on 16 March 2026 to prepare a terminal schedule of dilapidations for the second floor of Pennant House, let to Quillon Software Ltd under a lease dated 24 June 2016 for a term of ten years expiring on 23 June 2026. We were supplied with the lease, the licence for alterations dated 4 February 2019, the floor plans and the photographic schedule of condition attached to the lease.

This report records a non-destructive visual inspection carried out from the positions, and under the conditions, described in the methodology section. No parts of the building or asset were opened up, lifted, moved or tested unless the report says so. Concealed, covered, inaccessible or obstructed areas have not been inspected and we cannot confirm that they are free from defects. Observations describe the condition on the day of inspection only.

The premises were inspected on 8 April 2026 in the presence of the tenant's office manager. The inspection was visual; floor coverings were not lifted and the ceiling void was viewed at four sample locations. Weather was dry. Items are listed by clause of the lease; the costs are our estimate of the reasonable cost of the works at current prices, excluding VAT, preliminaries and fees, which are added in the summary.

The schedules in the following sections are set out in Scott schedule form so that the other party can respond against each item. The columns read as follows: Ref is the item number; Element names the element and the lease clause or licence relied on; Condition / description states the alleged breach; Recommended action sets out the remedial works claimed; Responsibility records the party said to be liable (landlord or tenant); Cost flags items that are costed in the summary of costs; and Photo cross-refers to the photographic evidence. Where costs are included, the figure for each item appears in the summary of costs table.

Where a schedule of condition is attached to the lease, items have been compared with it and the tenant is not asked to put the premises into a better state than that recorded. Where the landlord's intentions for the premises are known they have been taken into account in deciding which works are reasonably required.

The principal breaches are the tenant's failure to remove the glazed partitions installed under the 2019 licence and to redecorate in the final year of the term. The tenant has accepted in correspondence that the partitions are to be removed. Repairs to the plasterboard and ceiling are minor. The air-conditioning records should be supplied before the lease expires.

The costs below are the surveyor's estimate of the reasonable cost of carrying out the remedial works listed in the schedule, priced at the inspection date and exclusive of VAT, professional fees, loss of rent and any other consequential heads of claim unless stated. They are given to assist the parties in settling the claim and are not a quotation.

The landlord intends to re-let the floor as open-plan offices; no supersession applies to the items listed. The claim is limited to the diminution in value of the reversion under section 18 of the Landlord and Tenant Act 1927, which we do not consider to be less than the cost of the works.

I confirm that I have inspected the premises, that I have read the lease and the other documents listed in this schedule, and that in my opinion the works set out in it are those reasonably required to put the premises into the condition the lease requires. In preparing the schedule I have taken into account what I know of the landlord's intentions for the premises at the end of the term. Where costs are given, I believe them to be a reasonable estimate of the cost of the works at the date of inspection.

Clause 4.2 (repair): "to keep the premises in good and substantial repair and condition". Clause 4.4 (decoration): "to redecorate in the last year of the term in colours first approved by the landlord". Clause 4.9 (yielding up): "to yield up the premises with vacant possession, repaired and decorated in accordance with the tenant's covenants and with all alterations removed and the premises reinstated". Copies of the lease and the licence for alterations dated 2019 are held on file.