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Archive for January, 2008

Dilapidated?

Dilapidations has always been an important topic for surveyors and many await the next edition of the RICS Guidance Note (to be published in 2008) with keen anticipation. In the meantime, there is much to be considered from recent law reports and not just by surveyors.

In Ravengate Estates Ltd v Horizon Housing Group Ltd & Others [2007] EWCA Civ 1368 the Court of Appeal found that on the construction of the plans and wording of the lease, the demise included airspace above balconies, a flat roof and lightwell. It would, stated the Court, have been an easy matter to draw the red line on the plan to exclude the areas and hence redevelopment of the space was to be taken into consideration in assessing damages.

The case of Lyndendown Ltd v Vitamol Ltd [2007] EWCA Civ 826 concerned a tenant which had sublet its premises on the same terms as in its own lease but had then reduced the liability to repair to keeping the premises wind and watertight in a side letter. At first instance, the judge found on the evidence that there was no diminution to the landlord’s interest caused by the lesser covenant to repair and this conclusion was upheld by the Court of Appeal.

In Richard Parsons Ltd v Bristol City Council [2007] PLSCS 188 premises to be redeveloped were the subject of a compulsory purchase order. A tenant of the premises claimed compensation although it would, by the development, be relieved of a liability for dilapidations. The Lands Tribunal held that the liability was to be taken into account in assessing the amount of compensation which assessment was a matter of valuation.

Do these cases remind you that your firm needs an update on dilapidations? In which case, why not ask Hatherleigh Training to conduct a training session for you?