Share on LinkedInShare on LinkedIn

ARTICLE · 23 SEPTEMBER 2014

Dilapidations vs Improvements

Charles Russell Speechlys LLP
Charles Russell Speechlys LLP
Contributor
Charles Russell Speechlys LLP

Charles Russell Speechlys LLP

Charles Russell Speechlys is an international law firm with a focus on private capital, at the...

View firm profile
Explore more from Charles Russell Speechlys LLP

25 year leases granted in the late 1980s followed by short term extensions (to delay relocations during the financial crisis) are coming to an end.

United KingdomReal Estate and Construction
Ben Ward
Ben Ward

An influx of lease expiries is on the horizon as 25 year leases granted in the late 1980s followed by short term extensions (to delay relocations during the financial crisis) come to an end. There will consequently be a spike in terminal dilapidations claims. Landlords may attempt to use terminal dilapidations claims to recover the cost of improving their properties to current standards but will they succeed?

The recent High Court decision in Sunlife Europe Properties Limited v Tiger Aspect Holdings Limited and Tiger Television Limited [2013] EWHC 463 (TCC) summarised the legal principles surrounding dilapidations claims involving improvements. These principles, set out below, appear to make it difficult for landlords to recover the cost of improvements as part of a dilapidations claim:

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Renters’ Rights Act Update: Key Developments For Landlords

The UK Government has unveiled the next phase of the Renters' Rights Act 2025, introducing a mandatory private rented sector database launching December 2026 and transferring rent increase dispute resolution from tribunals to the Valuation Office Agency. These reforms will fundamentally reshape compliance obligations for landlords across England, requiring registration of all rental properties with annual fees and updated enforcement mechanisms.
GlobalReal Estate and Construction
Bates Wells
Bates Wells
Article

Selling A Tenanted Property: How Ground 1A Works Under The Renters’ Rights Act

Section 21 has been abolished for new possession action from 1 May 2026, but landlords who need to sell with vacant possession still have a route. Ground 1A of the amended Housing Act 1988 allows a landlord to recover possession where a genuine sale is intended, but it comes with a four-month notice period, restrictions on reletting and remarketing, and potentially significant penalties for misuse.
United KingdomReal Estate and Construction
Barnes Law
Barnes Law
Article

Renters' Rights Act 2025: What The Latest Government Announcement Means For You

The Renters' Rights Act 2025 introduces sweeping changes to the UK rental market, including a mandatory national property registration system and a new process for handling rent disputes. Landlords face strict deadlines and significant penalties for non-compliance, while the government promises faster resolution of tenant challenges to rent increases.
United KingdomReal Estate and Construction
Womble Bond Dickinson (UK) LLP
Womble Bond Dickinson (UK) LLP
Article

The Proposed Heathrow Third Runway: What Residents Need To Know About Property Impacts, Compensation And Reform

The prospect of a third runway at Heathrow Airport has resurfaced, bringing uncertainty to communities across West London and the Thames Valley about homes, property values and future planning. This guide examines how the compensation framework operates for affected homeowners, identifies critical gaps in protection during the years between policy approval and construction, and explains why reform is needed to address the human and financial costs of prolonged infrastructure uncertainty.
United KingdomReal Estate and Construction
Hugh James
Hugh James
Article

The Renters' Rights Act Private Rented Sector Database Is On The Way: What Landlords Need To Know

The UK Government has announced the second phase of the Renters' Rights Act, introducing a mandatory Private Rented Sector Database that will roll out region-by-region starting in the West Midlands in December 2026. Landlords across England will face registration requirements, annual fees of £65 per property, and potential penalties of up to £40,000 for non-compliance, fundamentally changing how the private rental sector operates.
United KingdomReal Estate and Construction
Blacks
Blacks
Article

The PRS Database Is Coming: What Landlords And Investors Need To Know

The UK Government has confirmed the operational framework for its new national rental property registration service, requiring landlords to register eligible private rented sector properties across England from December 2026. With registration costs of £65 per property annually and strict compliance deadlines varying by region, institutional investors and portfolio operators face significant data management and governance challenges. The rollout introduces ongoing reporting obligations that extend far
United KingdomReal Estate and Construction
Gowling WLG
Gowling WLG
Article

What July 2026’s Bank Of England Decision Means For Private Capital Stakeholders

As widely anticipated, the Bank of England voted last week to hold Bank Rate at 3.75%. Whilst markets had expected the decision, it is noticeable that the Monetary Policy Committee (MPC) moved from a 7-2 decision, to a 6-3 one, with three members favouring a 0.25% increase. The move demonstrates the continued uncertainty around the UK’s inflationary environment, particularly in light of geopolitical tension, tariffs and trade disruption and political change, and their combined impact on global energy prices and the wider economic outlook.
United KingdomFinance and Banking
Charles Russell Speechlys LLP
Charles Russell Speechlys LLP
Article

Summer 2026 Update: Where Are We Are On The Government’s Roadmap To Commonhold?

The UK Government has announced plans to introduce a substantially amended Commonhold and Leasehold Reform Bill in Autumn 2026, incorporating recommendations from the Housing Select Committee that could accelerate major changes to residential property ownership. Key proposals include reducing ground rent caps from £250 to nil after just 20 years, mandating automatic conversion to commonhold after collective enfranchisement, and establishing an independent regulator for property managing agents with enf
United KingdomReal Estate and Construction
Charles Russell Speechlys LLP
Charles Russell Speechlys LLP