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The majority of such cases occur after a lease end where a tenant may not have fully reinstated the building in accordance with its repairing obligations. In these circumstances Section 18 has the effect of limiting the landlord’s claim for damages to the loss in value suffered.
Section 18 is a reference to the Landlord and Tenant Act of 1927. It involves a specialist form of valuation relevant in the assessment of damages that result from a failure to meet contractual obligations.
A specialist form of valuation, undertaken by specialist valuers experienced in the legal and valuation issues that affect assessments for damages
For example where the best market value involves a substantial refurbishment or change of use, the value of the property may not be affected by the condition of any dilapidations. In those circumstances, the landlord’s claim for damages could be significantly less than the cost of undertaking works to reinstate.
At Savills this work is undertaken across the UK by individuals who are experienced in Section 18, while calling on the complementary skills and market knowledge of other Savills teams if and where appropriate.