Interpretation and Drafting of Repair Obligations in Leases [2024]

Repair obligations in leases are a perennial concern: whatever the market conditions, landlords need to maintain the value of their investment and tenants will seek to restrict their responsibilities. Advisors need to know how to reduce the likelihood of claims in the first place, and what is the meaning and scope of repairing obligations.

A typical repairing clause is short and uncomplicated, but that does not mean there are no difficulties of interpreting or applying it. There can be difficult issues in relation to identifying the required standard of repair. In principle the tenant will not be required to improve a property, but sometimes like-for-like replacement of worn-out items is impossible, and an element of improvement is inevitable – should there be a discount for betterment? Schedules of condition are a common way of limiting a tenant’s repair obligation, but they have serious limitations.

As well as the repairing clause, other relevant provisions include the obligation to reinstate alterations, and the so-called ‘Jervis v Harris’ clause, each of which also present issues of drafting and interpretation.

This session will consider these aspects in a practical way, giving a solid grounding in a practice area which is always developing and full of interest.

Learning aims and objectives:

• Required standard of repair
• The role of schedules of condition
• Repair v improvements
• Covenant to reinstate alterations
• Jervis v Harris clauses

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