Ravengate Estates Ltd v Horizon Housing Group Ltd & Ors [2007] EWCA Civ 1368 (19 December 2007)

Ravengate Estates Ltd v Horizon Housing Group Ltd & Ors [2007] EWCA Civ 1368 (19 December 2007)

The only likely purchaser would be a developer intending to redevelop, so the diminution in value is limited to the cost of survival items of repair, not the full cost of remedial works. The air space was included in the demise, so redevelopment potential must be considered in the valuation.

Citation
[2007] EWCA Civ 1368
Parties
Claimant/appellant: Ravengate Estates Limited; First Defendant/respondent: Horizon Housing Group Limited; Second Defendant: Persons Unknown
Jurisdiction
England and Wales
Judgment Date
19 December 2007
Procedural Posture
Civil Appeal / Appeal From Central London County Court Judgment
Outcome
Appeal dismissed
Legal Topics
Dilapidations, Damages, Lease Construction, Section 18(1) Landlord and Tenant Act 1927, Diminution in Value, Potential Redevelopment
Landlord and Tenant Property Law Dilapidations Damages Lease Construction Section 18(1) Landlord and Tenant Act 1927 Diminution in Value Potential Redevelopment

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Parties

Ravengate Estates Limited

Claimant/appellant

Horizon Housing Group Limited

First Defendant/respondent

Persons Unknown

Second Defendant

Procedural Posture

Civil Appeal / Appeal From Central London County Court Judgment

Legal Issues

  1. 1 Whether damages for breach of repairing covenant should be capped by section 18(1) of the Landlord and Tenant Act 1927
  2. 2 Whether air space above the flats was included in the demise
  3. 3 How diminution in value of the reversion should be assessed given redevelopment potential

Ratio Decidendi

The only likely purchaser would be a developer intending to redevelop, so the diminution in value is limited to the cost of survival items of repair, not the full cost of remedial works. The air space was included in the demise, so redevelopment potential must be considered in the valuation.

Court Disposition

Appeal dismissed

Orders

  • Damages limited to £50,000 for survival items of repair
  • No increase for omitted items