Upgrading repair of equipment to modern-day standards

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On the expiry of a full repairing lease, a tenant is not liable to upgrade the repair of equipment to modern-day standards. The tenant may adopt the most economic means of repair and does not need to consider the prospective economic life of any replacement plant installed. If the tenant’s works would be superseded by the landlord’s refurbishment works, the tenant avoids liability.

In Sunlife Europe Properties Ltd v Tiger Aspect Holdings Ltd (1) and Tiger Television Ltd (2) [2013] EWHC 463 TCC, Tiger was granted permission to appeal this decision on 15 May 2013, and a further update will follow once the outcome of the appeal is known. In the meantime, this case must be considered for guidance on future dilapidations claims.

The claimant was the landlord of commercial premises in Soho. It brought a dilapidations claim against the defendant, its former tenant, for the cost of repairs after the expiry of the leases…

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