TCC rules on terminal dilapidations claim for Dartford office building, cutting landlord's remedial works claim in £1.6m dispute with former tenant Westbury Homes
On 29 September 2026, His Honour Judge Keyser KC, sitting as a judge of the High Court's Technology and Construction Court (TCC), handed down judgment in Craigard (Dartford) Limited and Craigard (Dartford) Nominees Limited v Westbury Homes (Holdings) Limited and Westbury Limited ([2026] EWHC 2453 (TCC)). The claim concerns terminal dilapidations, meaning the obligation of a commercial tenant to return leased premises to the condition required by the lease at the end of the term, in respect of a purpose-built two-storey office building at Crossways Business Park in Dartford, providing approximately 14,916 square feet of accommodation. The claimants, a property syndicate that purchased the freehold for £3.1 million in March 2021, brought the claim after the lease with the first defendant expired by effluxion of time on 8 July 2023. A schedule of dilapidations was served in February 2024 and proceedings were issued in November 2024. The claimants originally sought damages of approximately £1.6 million, comprising remedial works costs, loss of rental income, and professional fees. In light of their own expert evidence, the amount claimed for remedial works was reduced to approximately £1.24 million before trial. Counsel for the claimants was Andy Creer, instructed by Hamlins LLP; counsel for the defendants was Barnaby Hope, instructed by Knights Plc. The hearing took place in June 2026.
Why this matters
Terminal dilapidations disputes are a staple of commercial real estate litigation, and the TCC's approach to quantifying remedial works claims, particularly where landlords and tenants advance competing expert evidence on scope and cost, directly affects how those claims are priced and settled across the market. The case also illustrates the position of former tenants that sub-let and were not in occupation: Westbury Homes held the lease but was not present in the building, which typically shapes arguments about the extent of the repairing obligation and the landlord's true loss. The judgment will be a useful reference for practitioners advising on dilapidations schedules and the limits of diminution-in-value caps on remedial costs claims.
On the Ground
This is a core real estate litigation matter, engaging lease covenant interpretation, expert evidence on building condition and remediation costs, and the calculation of losses including rental voids. Hamlins acted for the claimants and Knights for the defendants. Firms advising commercial landlords and tenants on portfolio exits should note the case as authority on how courts assess competing dilapidations expert evidence. A trainee on a dilapidations matter would prepare the trial bundle, index witness statements and expert reports, assist with the chronology of the lease and sub-lease history, paginate schedules of dilapidations, and track costs schedules for the litigation.
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