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Jonathan Cornes Associates & Hacking Ashton Dilapidations Presentation

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Dilapidations Commercial Property

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Jonathan Cornes Associates & Hacking Ashton Dilapidations Presentation

  1. 1. UNDERSTANDING DILAPIDATIONSBerkley Court, Borough Road, Newcastle-under-Lyme, ST5 1TT Tel: 01782 715555
  2. 2. Introduction Schedule of Condition Interim Dilapidations Terminal Dilapidations Landlord and Tenant Act 1927 Section 18(1) Dilapidations CPR Protocol 2012 Dilapidations Contentious Matters QuestionsJonathan Cornes Associates & Hacking Ashton LLP
  3. 3. Schedule of Condition Schedule of Condition  Appended to the lease  Liability Limitation  Detailed narrative  Statutory Requirements  Immediate works  Accuracy  BenefitJonathan Cornes Associates & Hacking Ashton LLP
  4. 4. Interim Dilapidations Criteria For Service  Longer than 7 years  More than 3 years remaining  Concerns of significant disrepairJonathan Cornes Associates & Hacking Ashton LLP
  5. 5. 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 1938Jonathan Cornes Associates & Hacking Ashton LLP
  6. 6. Interim Dilapidations 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 fitJonathan Cornes Associates & Hacking Ashton LLP
  7. 7. Interim Dilapidations 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 landlords 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 tenants liability to reimburse the landlord was not a liability in damages for breach of the repairing covenant. The landlords 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.Jonathan Cornes Associates & Hacking Ashton LLP
  8. 8. Terminal Dilapidations Terminal Dilapidations  Less than 3 years left on the lease  Lease clauses  Repair  Redecoration  Reinstatement  Yield Up  Professional fees  Statutory Compliance  Costings  BenefitsJonathan Cornes Associates & Hacking Ashton LLP
  9. 9. Landlord & Tenant Act 1927 Landlord & Tenant Act 1927 Section 18(1)  Diminution Valuation  Repairs  Redecoration  Latimer V Carney (2006)  ReinstatementJonathan Cornes Associates & Hacking Ashton LLP
  10. 10. Dilapidations Protocol 2012 Timescales ‘within’ Endorsement  Landlord  Tenant’s Surveyor Diminution Valuation  Valuation Surveyor  Before proceedings  Works completed  Works partly completed Non complianceJonathan Cornes Associates & Hacking Ashton LLP
  11. 11. Dilapidation Contentious Matters Reinstatement Statute of limitations Compensation VAT Statutory compliance Professional fees Historical records Loss of Rent / Rates Non-traditional buildingsJonathan Cornes Associates & Hacking Ashton LLP
  12. 12. Any Questions ?Jonathan Cornes Associates & Hacking Ashton LLP

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