What we cannot understand is why the claim should be based upon the cost of effecting repairs, when, in all likelihood, the landlord company will carry out extensive conversion work on the property. Even if it does not, there is no way that it can find a lessee who will be seriously concerned about the state of repair. How do we stand legally?
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Q Our warehouse stands in a light industrial area that has gone steadily downhill since we took a full repairing lease some 24 years ago. When we vacate in a few months’ time, we shall undoubtedly leave the leave the property in disrepair. There are already mutterings of a heavy claim for terminal dilapidations.
What we cannot understand is why the claim should be based upon the cost of effecting repairs, when, in all likelihood, the landlord company will carry out extensive conversion work on the property. Even if it does not, there is no way that it can find a lessee who will be seriously concerned about the state of repair. How do we stand legally?
A The facts suggest that, with appropriate advice, you should be able to express your misgivings in the terms of section 18 of the Landlord and Tenant Act 1927, which can, in the circumstances you describe, operate to reduce, and, in some cases, nullify, claims of the kind under discussion. For a useful survey of recent case law on the section (including Craven (Builders) Ltd v Secretary of State for Health [2000] 1 EGLR 128), see A question over pay as you go contributed by Christopher Hancock, of Wragge & Co, in Estates Gazette 28 April 2001, p216.
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PP 2003/7
