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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Vacant Means Vacant

In the recent case of Riverside Park Ltd v NHS Property Services Ltd 2016, once again the meaning of vacant possession was tested within the context of operating a break clause. The NHS took a ten year lease on open plan office space, with the option of exercising a break clause after 5 years, which they did. On the due date they left in place demountable partitioning that they had installed (referred to as a “rabbit warren”). At termination, the lease conditions obliged the tenant to have removed their alterations and give  vacant possession. The High Court decided that failure continue reading

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Valuation defence to a dilapidations claim.

McWhirter Locke Partner, Duncan Locke has recently given evidence in a High Court trial concerning the valuation cap on a Landlord’s dilapidations claim. The case concerned a business unit previously used for manufacturing and office purposes left vacant at lease expiry. Representing the major manufacturer tenant that had vacated the premises at lease expiry, Duncan presented evidence in Court on why in the circumstances of this case, the Landlord’s dilapidations claim should be capped by the valuation defence known as a Section 18 defence. Following the three day trial the Judgement stated the judge preferred the evidence of Duncan Locke and therefore imposed a continue reading

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Impending Dilapidations Time Bomb

The implications of the Energy Act 2011 look likely to cause significant problems to landlords, when they come into full force in April 2018. At that date it will be illegal to lease a residential or commercial building, where the requisite energy efficiency standard has not been achieved. Notwithstanding that buildings (some of them of relatively recent origin) might currently comply or appear to comply, in the event it is expected that for various reasons a large number of them will not meet the requisite standards by the due date.

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