Holly Minney
Dispute Resolution
Commercial Property Dilapidations; During the Term Claim
Dilapidation claims arise where a tenant has failed to comply with the repair and maintenance obligation within a lease.
Where a claim for dilapidation is made during the term, the remedies available to the landlord are;
- Damages
- Forfeiture
- Specific Performance
- Entry and repair under a Jervis V Harris Clause
- Specific Performance
A claim for damages during the term may not be the most appropriate remedy as the claim can be limited by the Leasehold Property Repairs Act 1938 and the common law measure of damages.
Often one of the other remedies will be more appropriate. Where a tenant is in breach of their repair and maintenance obligations a landlord may consider forfeiting the lease. In the case of disrepair, the landlord may exercise their right to forfeit, they will need to serve a section 146 notice on the tenant.
If the tenant fails to remedy the breach the landlord can then consider forfeiting the lease.
A Jervis v Harris clause allows a landlord the right to exercise the right to undertake the works to the property themselves and recoup the costs from the tenant. This remedy is only available where the lease expressly grants this right.
The remedy of specific performance is where the landlord seeks an order from the court requiring the tenant to do the works in compliance with their repairing obligation.
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Holly Minney, Head of Dispute Resolution at Mullis & Peake, said:
“If you are considering exercising any of these rights against your tenant, our experienced team will be able to guide you through the process and help you avoid any pit falls. Landlords have a number of options available to them when bringing a dilapidation claim during the term of the lease. It is prudent for landlords to consider their options and to take these steps early before a tenant has vacated. Contact our Romford office on 01708 784000 for more information.”