jonathan cornes associates & hacking ashton dilapidations presentation
TRANSCRIPT
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
Jonathan Cornes Associates & Hacking Ashton LLP
Schedule of Condition Appended to the lease Liability Limitation Detailed narrative Statutory
Requirements Immediate works Accuracy Benefit
Interim Dilapidations
Jonathan Cornes Associates & Hacking Ashton LLP
Criteria For Service
Longer than 7 years More than 3 years remaining Concerns of significant disrepair
Jonathan Cornes Associates
Interim Dilapidations
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
Jonathan Cornes Associates & Hacking Ashton LLP
Interim Dilapidations
Jonathan Cornes Associates & Hacking Ashton LLP
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
Interim Dilapidations
Jonathan Cornes Associates & Hacking Ashton LLP
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
Jonathan Cornes Associates & Hacking Ashton LLP
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
Jonathan Cornes Associates & Hacking Ashton LLP
Landlord & Tenant Act 1927 Section 18(1) Diminution Valuation Repairs Redecoration Latimer V Carney
(2006) Reinstatement
Dilapidations Protocol 2012
Jonathan Cornes Associates & Hacking Ashton LLP
Timescales ‘within’Endorsement
Landlord Tenant’s Surveyor
Diminution Valuation Valuation Surveyor Before proceedings Works completed Works partly completed
Non compliance
Dilapidation Contentious Matters
Jonathan Cornes Associates & Hacking Ashton LLP
ReinstatementStatute of limitationsCompensationVATStatutory complianceProfessional feesHistorical recordsLoss of Rent / RatesNon-traditional
buildings