3rd surveyor’s award of ‘grossly excessive’ expenses, overturned. Welter v McKeeve November 2018

This is about an appeal against a 3rd surveyor’s award. It deals with recompense of expense incurred by the Adjoining Owner to rectify defects in the construction of underpinning to a party wall that was previously undertaken by the Building Owner.  The matter that the 3rd surveyor had to consider, was whether the cost incurred of about £148,000.00 comprised the proper amount to be paid, given that the Building Owner’s surveyor was making the point that the costs are ‘grossly and extremely excessive’. Despite this he awarded that amount. The Judge took the view that he could find no evidence continue reading

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Dilapidations damages could be income for tax purposes

In James Allan Thornton v The Commissioners for Her Majesty’s Revenue & Customs [2016] at the end of a lease, the premises were in disrepair. The landlord and tenant agreed a settlement by way of surrender premium, which was not attributed to any particular item. The parties recorded the payment as being ‘…in full and final settlement in relation to all issues associated with the lease’ In due course the landlord proceeded to repair the premises at a greater cost than the amount he receive. The landlord treated the money as a receipt of capital but HMRC viewed it that it continue reading

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When Is New Carpet Dilapidated?

In Laindon Holdings Limited v South Essex Partnership University NHS Foundation Trust (2016), the Court of Appeal decided that, the tenant had a right to replace carpets without landlord’s specific consent. Accordingly the tenant was not in breach of their repairing covenant in so doing. In this terminal dilapidations claim, the landlord, asserted that because the tenant had replaced the previous carpet tiles with broadloom carpet they had not complied with their covenant to repair and therefore sought damages from the tenant. The court found that the lease contained a clause permitted internal non-structural alterations, which amongst other things, allowed continue reading

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Car Giant Limited & Acredart Limited v The Mayor and Burgesses of the London Borough of Hammersmith 2017

An inflated dilapidations claim costs landlord dearly. At the termination of a lease, the landlord carried out repair works, at a cost of around £183,000 but sought damages for dilapidations that included the cost of other works, which had not been undertaken, at a cost of around £402,000 (the difference being around £219,000). The Landlord and Tenant Act 1927 section 18 (1) provides that damages for breaching of the relevant lease terms shall not exceed the amount by which the value of the reversion is diminished. The judge concluded that the cost of work already undertaken, was the amount by continue reading

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Gray v Elite Town Management – Party Wall Surveyors Designers? Independent?

In the case of Gray v Elite Town Management (July 2015) and later at appeal (November 2016), the courts had to consider, whether the provision in the Party Wall etc Act 1996 that the party carrying out the work must not cause unnecessary inconvenience to the Adjoining Owner, created an obligation on the appointed party wall surveyors to consider all possible designs that might achieve the Building Owner’s objective. The Courts decided that this provision only related to the manner in which the works were carried out and not the actual scheme. The scheme did not have to be the continue reading

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