Ravengate Estates Ltd v Horizon Housing Group Ltd & Ors

Ravengate Estates Ltd v Horizon Housing Group Ltd & Ors

The Court held that the airspace was included in the demise and that any purchaser would buy with an eye to redevelopment, making most repairs otiose. Therefore, damages were capped at the diminution in value of the reversion, represented by the cost of 'survival items' only, not the full cost of repairs.

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 to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Dilapidations, Damages for Breach of Repairing Covenant, Valuation of Reversion, Section 18(1) Landlord and Tenant Act 1927, Redevelopment Potential
Landlord and Tenant Law Property Law Dilapidations Damages for Breach of Repairing Covenant Valuation of Reversion Section 18(1) Landlord and Tenant Act 1927 Redevelopment Potential

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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 to Court of Appeal

Legal Issues

  1. 1 Whether damages for breach of repairing covenant should be capped by the diminution in value of the reversion under section 18(1) of the Landlord and Tenant Act 1927
  2. 2 Whether the airspace above the demised premises formed part of the demise and thus the reversion
  3. 3 How redevelopment potential affects the assessment of damages for dilapidations

Ratio Decidendi

The Court held that the airspace was included in the demise and that any purchaser would buy with an eye to redevelopment, making most repairs otiose. Therefore, damages were capped at the diminution in value of the reversion, represented by the cost of 'survival items' only, not the full cost of repairs.

Court Disposition

Appeal dismissed

Orders

  • Damages for breach of repairing covenant capped at £50,000 for survival items, plus £2,333 for schedule of dilapidations and £9,116.25 for loss of rental.