Cladding Case Puts Landlords' Repairing Covenants Under The Spotlight

The case concerns a dispute between a commercial landlord and tenant over responsibility for remediating combustible cladding at a hotel near Wembley Stadium. As the building is a hotel rather than a residential block, remediation orders under the Building Safety Act 2022 do not apply. Therefore, the key issues fell to be determined by the terms of the lease.

The facts

The cladding in question was added to the building in 2005 by the then owner, Essendi UK Hotels 2 Ltd (“Essendi”). In 2007, Essendi sold the building but took a lease (the “Original Lease”) from the new owner. The Original Lease included bespoke provisions making Essendi responsible for cladding defects until 2017, thereafter, responsibility passed to the landlord.