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Development of Scots law on dilapidations: Diminution valuations as a measure of the landlord’s loss
Without the application of section 18(1) of the Landlord and Tenant Act 1927, Scots law on dilapidations has developed differently to the law south of the border. This article considers the principles applied in both English and Scottish cases, and looks at three recent decisions in the Scottish Courts — Grove v Cape, Mapeley, and the decision on appeal in @SIPP — and considers where, in the absence of payment clauses, diminution in value may be available as a possible alternative measure of the landlord’s loss in Scotland. Other matters considered include: the potential conflict between normal damages and s18(1); formal guidance and procedures both north and south of the border; the four ‘type’ of dilapidations cases; the basic components of a straightforward diminution valuation; and the building surveyor’s input and a ‘shortcut method’ of assessing diminution in a simple case.
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Richard D Kay frics is senior partner at Beckett and Kay and a Fellow of the RICS. He specialises in landlord and tenant work, with particular emphasis on damage to the reversion (valuation in dilapidations) and leasehold enfranchisement. Richard is a past member of the RICS Dilapidations Forum Steering Group. He appeared as an expert witness at the Central London County Court in Anstruther v Vidas (valuation in dilapidations). As a trainee surveyor he assisted in the Shortlands v Cargill leading case on valuation in dilapidations. He has been involved in a number of recent Scottish dilapidations cases.