header-logo header-logo

25 February 2010 / Lesley Hughes
Issue: 7406 / Categories: Features , Property
printer mail-detail

If the cap fits

Lesley Hughes confirms why the courts won’t sanction the invention of a special purchaser

As landlords chase terminal dilapidations claims ever harder in times when redevelopment opportunities are scarce, tenants are increasingly turning to s 18(1) of the Landlord and Tenant Act 1927 to try to cap their liabilities.
The Court of Appeal decision in Van Dal Footwear Ltd v Ryman Ltd [2009] EWCA Civ 1478, [2009] All ER (D) 41 (Dec) has left little doubt about what test the courts must apply when looking to cap damages arising from a breach of covenant to keep a property in repair. The case also clarifies the position with respect to the effect on value of reversionary leases. While the landlord’s reversionary interest must by valued subject to binding sub-tenancies, any reversionary lease (whenever and with whoever granted) must be ignored

Case history

Ryman occupied a 17th-century listed building under a lease, the term of which had expired. It continued to occupy the premises under a series of tenancies at will, each of which kept alive the repairing obligation.
Unable to agree terms for a new

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Test Article Upgrade

Test Article Upgrade

"Neque porro quisquam est qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit...""There is no one who loves pain itself, who seeks after it and wants to have it, simply because it is pain..."

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

NEWS

Family lawyers cite financial disincentives for issuing child protection orders

A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
back-to-top-scroll