End of Leases

Leases must be read and construed as a whole. In the hurly-burly of negotiation this wider perspective can be overlooked. Not until a matter goes to court is the inter-relationship between the parties' covenants and obligations fully understood.

However, some clauses are evidently linked, such as alterations and yielding up. In South Essex Partnership University NHS Foundation Trust v Laiden Holdings Limited [2016] EWCA CIV 337, the Court of Appeal looked at the terms of these clauses in the context of a dilapidations settlement.

The tenant had undertaken fitting out works at the start of the lease, at its expense but using contractors nominated by the landlord. The bulk of the work concerned the lift but carpet tiles were also lifted and (where possible) re-used. During the lease the tenant had freedom to make internal non-structural alterations without consent. At the end of the term the landlord could require reinstatement of those alterations if it was