Jonathan Cornes Associates & Hacking Ashton Dilapidations Presentation

UNDERSTANDING DILAPIDATIONS

Berkley Court, Borough Road, Newcastle-under-Lyme, ST5 1TT Tel: 01782 715555

Introduction

Jonathan Cornes Associates & Hacking Ashton LLP

Schedule of ConditionInterim DilapidationsTerminal DilapidationsLandlord and Tenant Act 1927 Section 18(1)Dilapidations CPR Protocol 2012Dilapidations Contentious MattersQuestions

Schedule of Condition


Schedule of Condition Appended to the lease Liability Limitation Detailed narrative Statutory

Requirements Immediate works Accuracy Benefit

Interim Dilapidations


Criteria For Service

Longer than 7 years More than 3 years remaining Concerns of significant disrepair

Jonathan Cornes Associates


Remedies Available Damages Forfeiture Entry to carry out the works followed by claim for

costs

Main Pieces of Legislation Law of Property Act 1925

Section 146 Notice Leasehold Property (Repairs) Act 1938




Statutory Test

Section 5 - Leasehold Property (Repairs) Act 1938

Devaluation of the property Failure to comply with bye-laws or statute Delay will significantly increase work required and costs Disrepair will affect other occupiers Special circumstances as the court sees fit



Re-entry

Jervis v Harris; CA (Sir Stephen Brown P, Millett, Otton LJJ); 9 Nov 1995

Overruling Swallow Securities v Brant (1981) 45 P & CR 328, the court held that a landlord's right to enter the property, effect repairs himself and then claim to recover the cost of doing so from the tenant was not a claim for damages for breach of a covenant by the tenant "to keep or put in repair during the currency of the lease all or any of the property comprised in the lease" requiring the consent of the court under s 1 of the Leasehold Property (Repairs) Act 1938. The tenant's liability to reimburse the landlord was not a liability in damages for breach of the repairing covenant. The landlord's claim sounded in debt not damages and was in effect a claim for reimbursement of sums actually expended by the landlord in carrying out the repairs himself.

Terminal Dilapidations


Terminal Dilapidations Less than 3 years left on the lease Lease clauses

Repair Redecoration Reinstatement Yield Up Professional fees Statutory Compliance

Costings Benefits

Landlord & Tenant Act 1927


Landlord & Tenant Act 1927 Section 18(1) Diminution Valuation Repairs Redecoration Latimer V Carney

(2006) Reinstatement

Dilapidations Protocol 2012


Timescales ‘within’Endorsement

Landlord Tenant’s Surveyor

Diminution Valuation Valuation Surveyor Before proceedings Works completed Works partly completed

Non compliance

Dilapidation Contentious Matters


ReinstatementStatute of limitationsCompensationVATStatutory complianceProfessional feesHistorical recordsLoss of Rent / RatesNon-traditional

buildings


Any Questions ?

Documents

Jonathan Cornes Associates & Hacking Ashton Dilapidations Presentation