1. Commercial property focussed repairs and Dilapidations
Part of the lease contract A wide range of wording of the repairing covenant is possible (likely) In good repair In good and tenantable repair In good and substantial repair Repair v renewal Ravenseft Properties v Davstone 1979

2. Other Repair Issues
Obligation to repair, fair wear and tear accepted does not allow tenant to overlook repair that would have further damaging consequences.
The term of years is a material issue in deciding reasonableness of a repair
Put in repair is rare
Keep in repair means put
Leave in repair can only be implemented at the end of the lease

3. Standard of Repair
Proudfoot v Hart , Lurcott v Wakely, Lister v Lane Brew v Snax
Tenant should not have to give back something better either (at odds with Ravenseft?)
But a Landlord can word the clause towards good modern standards, but tenant will factor this into rent to be paid.
What repair clause fits the type of building?
Do we need to use the O’may principles?

4. Standard of Repair Where applicable? Wind and watertight
In the same condition as at the commencement, fair wear and tear accepted.
Needs a schedule of condition.
Tenant to repair improve etc as a condition?

5. Repair v renewal?
What is reasonable to allow re letting to a similar standard of tenant bearing in mind how the area and type of property has changed during the lease?
Calthorpe case, “I attach no particular importance to the form of words” the premises are to be yielded up in repair”

6. Time is important Allow for ageing, older items need not be made new.
Some renewal of subsidiary parts that wear out

7. Therefore….
A covenant to keep in repair does not mean to put in the same state as at the start of the lease.
If you want this you must state it.
All the circumstances of the deal are important ie the whole lease and the context of the premises.
Distinction between component parts and substantially the whole

8. And……. There are many factors to be taken into account
Holding Management v Property Holdings there is not a comprehensive list
The most important issues are common and arise often
If patching repairs would not last a court could order more substantial work Gibson v Chesterton 2002

9. What to do in case of a breach
What do you actually want and how will you seek this?
Are you at the end or some way through the lease?
During the lease, do you want the works to be done or possession?
Schedule of dilapidations for the tenant to do the work and stay. Alternative approaches?
S146 notice (LPA 1925).
Leasehold Property Repairs Act 1938 gives substantial relief from enforcement (7 year lease with 3 plus remaining).

10. Courts can permit enforcement if…
To prevent substantial diminution in value of reversion.
Other legislation requires it.
Another occupier being affected
The repair is easily and cheaply done.

11. Damages?
S18 LTA 1927
Damages cannot exceed decrease in value of reversion. Very different to cost
Where demolition/refurbishment intended, no diminution.
Landlord and tenants surveyors negotiate around cost of repair and initially tenants liability in context of repairing covenant and any schedule of condition
Scope for dispute is clear.

12. Scope of Claim Tenants surveyor will advise on reasonableness.
Should the item be there?
Is the cost reasonable?
What are the landlords intentions after, eg refurbishment?
Interpretation of the schedule of condition.
Interpretation of lease wording.

13. Negotiate Put in marginal items you can give up.
Some costs may be reduced in negotiation.
Agree? Arbitration clause in lease is common. ADR options.
Referral to county court on large claims is likely, but now more expensive.
Still a valuation issue ie how much is the value reduced by the disputed disrepair?

14. No clear evidence of value reduction?
Revert substantially to cost of repair, plus a rent free to allow for the works to be completed?
On rare occasions lessors will need to enter if there is a clause in the lease, but this is fraught with difficulties.

15. Other options?
Or make it Landlords responsibility for main items and tenant can be recharged.
Will be factored into rent potential.
Read Chapter 6 Banfield
MOJ Dilapidations Protocol
RICS Dilapidations guidance note
Commercial Lease Code