Key dilapidations issues

Modern leases are extremely full and include a large number of clauses that have a bearing on a dilapidations claim. These may be summarised as follows:

• a general covenant to repair;
• a covenant to yield up the premises at the end of the tenancy;
• covenants to repair in specific circumstances;
• covenants to decorate;
• covenants to reinstate alterations or not to make them at all;
• covenants to comply with statutes;
• covenants to rebuild or reinstate following destruction of the premises;
• covenants to comply with a superior lease;
• covenants relating to plant, machinery and services;
• covenants relating to fixtures;
• covenants allowing the landlord to enter the premises and to carry out works in default of the tenant doing so;
• covenants concerning the recovery of costs incurred in relation to breaches of the terms of the tenancy or in relation to the service of documents or schedules under the lease or statute; and
• covenants or agreements concerning the early determination of the tenancy and associated conditions precedent.

The following pages give the reader a basic overview of some of the key dilapidations issues often encountered:

• repair;
• improvements and alterations;
• removal of tenant’s fixtures;
• compliance with statutes;
• decoration;
• undefined works; and
• implied obligations.