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plj16118
Dilapidations – damages Print
The general rule is that if T fails to repair then the damages payable to L at the end of the lease will be the cost of putting the property back into its proper state of repair. However, that is subject to a cap, so that damages cannot exceed ‘the amount by which the value of the reversion… is diminished’ (s18 LTA 1927). An article in the Gazette argues strongly that it is advisable to have expert valuation evidence to put before the court. The court will need to know the difference between the value of the property unrepaired and its value repaired (or at least to know that the difference between the two exceeds the sum claimed by L from T). Ideally, a single joint expert would provide this evidence. Having said that, it is not compulsory and the court can presume in obvious cases that this repair must have caused some damage to the reversion, and repair bills may be a reliable guide. But, recent decisions show that whilst expert evidence is not mandatory, it is far preferable to come to court with valuations that address the s18 cap. The surveyor will have to address the individual breaches, the cost of remedial action, and the impact on reversionary values. For more on this see [2007] LSG 4 January 13. © Practical Lawyer

January 2007
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