Property update — January 2014: dilapidations - .PDF file.
In its May 2013 property update, Wragge & Co looked at whether a tenant who hands back out-of-date plant and machinery has complied with its repairing obligations. The High Court, in the case of Sunlife Europe Properties Ltd v Tiger Aspect Holdings Ltd, held that as long as the equipment is working there is no obligation to replace, renew or upgrade a dated system to modern standards (unless the lease or legislation says otherwise).
Despite winning on that particular issue — and therefore not being liable to replace the outmoded air-conditioning system — the tenant appealed.
The High Court judge had found the tenant, Tiger Aspect, liable to pay £1.4m in damages to its landlord. The judge had undertaken a meticulous examination of the competing sets of evidence, presented by the parties’ respective surveyors, and found the tenant to be in breach — in many respects — of its obligation to hand back the premises in a state consistent with the repair and decoration covenants imposed by the lease…
If you are registered and logged in to the site, click on the link below to read the Wragge & Co briefing. If not, please register or sign in with your details below.