Case Alert - dilapidations
Van Dal Footwear v Ryman [2009] 1 All ER 883
In this recent case involving assessing the appropriate level of damages for dilapidations as between the cost of repair and the diminution in value of the reversion, the Court of Appeal made clear that what is to be valued is the landlord’s unencumbered interest in the property at the time the tenancy ends.
- The Court disagreed with the judgment at first instance in which the judge wrongly took into account several hypothetical facts and emphasized that no regard should be given to any new lease that might be entered into.
- All that was to be valued was the bundle of rights the landlord actually had on the date the property reverted back to it. The only hypothesis the court should take into account are that there are two simultaneous sales as at the lease expiry date — one in repair and one out of repair. No other hypothetical facts should be considered. A special purchaser could be taken into account if it existed in reality at the relevant date, but should not be invented.
For further information on this or any real estate litigation issue, please contact Vanessa Joll by emailing Vanessa or by calling her on 08450 990045, or speak to your usual contact in the Real Estate Team.