{"id":4713,"date":"2013-01-07T13:38:18","date_gmt":"2013-01-07T12:38:18","guid":{"rendered":"http:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=4713"},"modified":"2016-02-04T11:55:59","modified_gmt":"2016-02-04T11:55:59","slug":"chancery-court-rules-on-tenants-liability-to-carry-out-reinstatement-and-repair-works-upon-surrender-of-a-lease","status":"publish","type":"page","link":"https:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=4713","title":{"rendered":"Chancery Court rules on Tenant\u00e2\u20ac\u2122s liability to carry out Reinstatement and Repair Works upon surrender of a Lease"},"content":{"rendered":"<p><span style=\"color: #000000;\"><b><i>\u00c2\u00a0<\/i><\/b><\/span><\/p>\n<h1>Ref. Baroque Investments Ltd V Heis &amp; Ors (2012)<\/h1>\n<p><span style=\"color: #000000;\">The Chancery Court was requested to determine the Tenant\u00e2\u20ac\u2122s liability to carry out reinstatement and repair works to the premises they formerly occupied, upon surrender of said lease but prior to the expiry of the term.<\/span><\/p>\n<p>The Landlord leased premises to the Tenant who covenanted in an express clause to keep the premises in good and substantial repair. The Tenant was granted additional Licences to carry out Tenant\u00e2\u20ac\u2122s improvements on the specific terms that, before the lease expired, the Tenant would carry out reinstatement of the works.<\/p>\n<p><span style=\"color: #000000;\">Unfortunately, the Tenant went into liquidation and the defendants were appointed as the Liquidators. As Liquidators, they then surrendered the lease back to the Landlord.<\/span><\/p>\n<p><span style=\"color: #000000;\">Specific terms were agreed in the leasehold documentation which released the parties from all rights and obligations under the lease \u00e2\u20ac\u0153on or after, but not before the date of surrender\u00e2\u20ac\u009d.<\/span><\/p>\n<p><span style=\"color: #000000;\">The Chancery Court Held that:<\/span><\/p>\n<p><span style=\"color: #000000;\">The Tenant would breach the terms of the tenancy if the reinstatement works were not carried out before the lease expired or was surrendered. As the Tenant\u00e2\u20ac\u2122s obligation arose after the date of the surrender, the reinstatement liability was automatically extinguished by the surrender.<\/span><\/p>\n<p><span style=\"color: #000000;\">Damages for repairing breach of covenants which would have occurred during the occupation was a liability for the Tenant, but this was limited to the before and after valuation approach. (<a href=\"http:\/\/www.legislation.gov.uk\/ukpga\/Geo5\/17-18\/36\/section\/18\" target=\"_blank\">S.18 Landlord and Tenant Act 1927.<\/a>)<\/span><\/p>\n<p><span style=\"color: #000000;\">No attempt had been made to value the reversion in either its actual or the (assumed) repaired state.<\/span><\/p>\n<p><span style=\"color: #000000;\">An assumption was made that this would be the Landlord\u00e2\u20ac\u2122s loss on re-letting.<\/span><\/p>\n<p><span style=\"color: #000000;\">It was considered that a provable debt may have existed, in which case any loss would have been restricted to the amount that the breach of covenant would have diminished the value. Unfortunately, the due process was not followed and the amount ascertainable upon valuation of the reversion in its actual and repaired state was not calculated.<\/span><\/p>\n<p><span style=\"color: #000000;\">Because the proper processes were not followed, in accordance with S.18 Landlord and Tenant Act 1927, the debt was not provable and, as such, no compensation was payable by the tenant or the liquidator. Nor was a valid claim able to made made against the Tenant&#8217;s assetts.<br \/>\n<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #000000;\">&#8212;<\/span><\/p>\n<p><span style=\"color: #000000;\">We value your input. If you have thoughts or opinions on this article or subject, a suggestion for a different article or would simply like to let us know you enjoyed it (or not!), please use the form below to provide feedback. Many thanks!<\/span><\/p>\n<p><span style=\"color: #000000;\">[contact-form][contact-field label=&#8217;Email&#8217; type=&#8217;email&#8217; required=&#8217;1&#8217;\/][contact-field label=&#8217;I liked this article&#8217; type=&#8217;checkbox&#8217;\/][contact-field label=&#8217;I did not like this article&#8217; type=&#8217;checkbox&#8217;\/][contact-field label=&#8217;Comment&#8217; type=&#8217;textarea&#8217;\/][\/contact-form]<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00c2\u00a0 Ref. Baroque Investments Ltd V Heis &amp; Ors (2012) The Chancery Court was requested to determine the Tenant\u00e2\u20ac\u2122s liability to carry out reinstatement and repair works to the premises they formerly occupied, upon surrender of said lease but prior to the expiry of the term. The Landlord leased premises to the Tenant who covenanted &hellip; <a href=\"https:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=4713\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Chancery Court rules on Tenant\u00e2\u20ac\u2122s liability to carry out Reinstatement and Repair Works upon surrender of a Lease&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"footnotes":""},"folder":[],"class_list":["post-4713","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Chancery Court rules on Tenant\u00e2\u20ac\u2122s liability to carry out Reinstatement and Repair Works upon surrender of a Lease - Property Surveying NEWSLETTER<\/title>\n<meta name=\"description\" content=\"The Chancery Court was requested to determine the Tenant\u00e2\u20ac\u2122s liability to carry out reinstatement and repair works to the premises they formerly occupied...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=4713\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chancery Court rules on Tenant\u00e2\u20ac\u2122s liability to carry out Reinstatement and Repair Works upon surrender of a Lease - 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