News

Consortium Commercial Developments Limited v ABB Limited

Consortium Commercial Developments Limited v ABB Limited

This case concerns a claim for dilapidations in relation to premises known as Capella House, Snowdon Drive, Milton Keynes, which was let for a term of 15 years expiring on 16 June 2011

Even though the lease expired some 4 years prior to the case, the disrepair and failure to re-instate that existed at lease expiry has not been remedied and the case concerned the amount that should be awarded to the landlord in relation to such breaches of covenant. Such damages being limited by S.18 (1) of the landlord and Tenant Act 1927 to the diminution in value caused by the disrepair.


Court of Appeal overrules High Court decision to allow M&S to claw back £1.1m in rent and other charges from Landlord.

Court of Appeal has overrules High Court decision to allow M&S to claw back £1.1m in rent and other charges from Landlord

This serves as a blow to tenants trying to claim back rents following a break clause when there is no specific provision listed.

If M&S had been successful, Landlords could have been forced to refund to tenants portions of rent and services changes paid to exercise a break clause, even if the lease failed to provide for this eventuality.


Disrepairs invalidate break attempt

Disrepairs Invalidate Break Attempt

The Scottish Court of Session, Outer House has recently held that where a tenant was required under a lease not to be in breach on serving a break notice “and/or” on the break date, the tenant’s substantial repair works between those two dates were of no avail.

In Arlington Business Parks GP v Scottish & Newcastle (2014) a lease of office space in Edinburgh contained a break clause that required the tenant to give 12 months’ notice and not be “in breach of any of their obligations … at the date of service of such notice and/or the termination date.”


Severe Costs Consequences for Failure to Mediate: When Silence is Not Golden (PGF II SA v OMFS Company 1 Limited [2013] EWCA 1288)

Severe Costs Consequences for Failure to Mediate: When Silence is Not Golden

The facts

The Claimant ("the Landlord") was the owner of a property at 33 Lombard Street, London. After the lease had expired, the Landlord issued proceedings against the Defendant ("the Tenant") for damages of approximately £1.9 million for breach of repairing obligations. The Tenant defended the claim on the basis that there was no diminution in value under Section 18 of the Landlord and Tenant Act 1927, and so the Landlord had suffered no loss.


Validity of a Non-Compliant Break Notice - Good News for Landlords

Validity of a Non-Compliant Break Notice - Good News for Landlords

Summary

In the recent case Friends Life Limited and Siemens Hearing Instruments Limited [2014] the Court of Appeal has held that the requirements for the exercise of a break clause in a lease must be complied with to the letter. If they are not, the purported exercise will be invalid: substantial compliance is not enough and even the most trivial non-compliance will mean that it is ineffective.


Do your Dilapidations duty

Do your Dilapidations duty

Sir, I read with interest the question posed by Adam Myeroff regarding lease breaks and, indeed, the response provided along with the various other comments on the LinkedIn debate (feedback, 21.03.14. below)

While recent case law suggests tenants can easily slip up on the payment of rents and associated interest, align with the granting of vacant possession, perhaps the most important element in a material compliance claim is the obligation to repair, redecorate and yield-up – in other words, the dilapidations obligations.


Landlords win Game case

Landlords win Game case

A group of the country’s biggest landlords have won a ground breaking test case to overturn the law on payment of rent during administrations.

British Land, Intu, Hammerson and Land Securities have set a legal precedent that will enable them to recover around £3m of unpaid rent suffered from the collapse of retailer Game.

From now on, rent will be due on a pay-as-you-go basis in the same way utilities are, dependent on the circumstances of each administration.


The RICS has just released a “guide to dilapidations”

The RICS has just released a “guide to dilapidations”

Download your copy of the RICS dilapidations on the link below – download your copy here


Dilapidations: Repair of Rooflights and Meaning of Windows - Twinmar Holdings Ltd v Klarius UK Ltd [2013] EWHC 944 (TCC)

Dilapidations: Repair of Rooflights and Meaning of Windows

Summary

This terminal dilapidations claim provides some useful guidance regarding rooflights and windows.

The Court found that rooflights which had lost translucency were not in good and substantial repair and condition as required by a lease. The Court also considered whether the rooflights were actually windows, and provided some guidelines on identifying windows.


Charge less for dilaps works

Charge less for dilaps works

Letters page of Property Week  - 14th October 2013   

Sir, Having attended the annual RICS Dilapidations Forum Conference last month, there is a great interest in the impact of the Dilapidations Protocol and whether the requirement to set out the landlord’s likely loss on the quantified demand has assisted the process in terms of producing claims that truly reflect this loss.