Expert Witness Journal Issue 68 August 2026 - Flipbook - Page 54
Landlord Repair Covenants and
Cladding Replacement: Essendi v
LPC and 昀椀re safety liability under
commercial leases
by Reena Patel, Partner, Gemma Whittaker, Partner & Co-head of Building Safety, Brett
Mason, Senior Associate & James Giddins, Trainee at Gowling WLG.
A recent High Court judgment provides important
and novel guidance on cladding replacement
obligations under commercial leases, particularly
where 昀椀re safety defects arise from combustible
cladding.
Three key headline points from the judgment
include:
In Essendi UK Hotels 2 Limited v London Property
Company Limited [2026], the Technology and
Construction Court (TCC) held that a landlord’s
covenant to “put and keep” the building in “good
and substantial repair and condition” extended to an
obligation to remove and replace highly combustible
aluminium composite material (ACM) cladding
panels, even in the absence of physical disrepair.
EXPERT WITNESS JOURNAL
52
1.
The Court held that a landlord’s “good
condition” covenant in a commercial lease can
require wholesale cladding replacement on 昀椀re
safety grounds; and
2.
It is understood to be the 昀椀rst time the courts
have considered whether obligations under the
Regulatory Reform (Fire Safety) Order 2005 (the
“FSO”) can be enforced contractually through a
covenant to comply with legal obligations; and
3.
The tenant constructed the hotel prior to
e昀昀ecting a sale and leaseback to the landlord.
JULY | AUGUST 2026
