One of the most common questions following a dilapidations claim is whether a landlord can recover money for repairs that they do not actually intend to carry out.
The answer is not simply yes or no.
Does the landlord have to carry out the works?
A dilapidations claim generally concerns the landlord’s loss resulting from the tenant’s breach of lease obligations.
The landlord does not necessarily have to complete every repair before seeking to recover damages.
However, the circumstances surrounding the claim can be highly relevant when determining the landlord’s actual loss.
What if the property is being redeveloped?
This can significantly affect a claim.
If the landlord intends to demolish, substantially alter or redevelop the property, carrying out the tenant’s proposed repairs may not be economically or practically appropriate.
The intended future use of the property can therefore be relevant when considering whether the landlord has suffered a loss and, if so, its extent.
Does Section 18 matter?
It can.
Section 18 of the Landlord and Tenant Act 1927 provides an important statutory limitation on damages for certain breaches of repairing obligations.
Among other things, it can be relevant where the landlord intends to demolish or substantially alter the premises.
The application of Section 18 is fact-specific and should not be treated as an automatic reduction to every dilapidations claim.
What evidence might be relevant?
Depending on the circumstances, relevant evidence may include:
- The lease and relevant covenants.
- The property’s condition at lease expiry.
- The schedule of dilapidations.
- Photographs and inspection records.
- Proposed works.
- Evidence of the landlord’s intentions for the property.
- Relevant quotations or cost information.
- Any subsequent works undertaken.
A surveyor can assist with the technical assessment of the property and proposed remedial works.
Can the tenant simply refuse to pay?
A tenant should not assume that a landlord’s failure to carry out the works automatically defeats a claim.
Equally, a tenant should not simply accept the amount demanded without understanding the basis of the claim.
The legal and valuation aspects of a dilapidations claim can require consideration alongside the building condition and lease obligations.
Stokemont’s advice
Whether a landlord has suffered a recoverable loss is an important consideration when assessing dilapidations.
Where a claim is substantial, an independent assessment of the property, lease obligations and proposed remedial works can provide useful evidence for subsequent negotiations.
