Overview

Damages for breach of a tenant’s obligation to repair a property cannot exceed the amount (if any) by which the value of the landlord’s reversionary interest is diminished by the breach. This is the rule set out in section 18(1) Landlord and Tenant Act 1927.
In Van Dal Footwear Ltd v Ryman Ltd (2009) the Court of Appeal has confirmed the correct basis for valuing the landlord’s reversion under s 18(1). This provides welcome clarification, particularly in circumstances where there have been negotiations for a new lease.

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