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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.
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January 2007 |