Reinstatement

Reinstatement refers to the tenant’s liability to remove its alterations at lease expiry, and reinstate
the premises to their original condition, as at lease commencement. If carried out under licence,
there will usually be an express covenant to reinstate in the licence in addition to the ‘general’
obligation to do so in the Yielding Up clause. Frequently encountered in dilapidations cases, where
the landlord’s claim for damages, based on the cost of reinstatement, is subject to a Diminution in
Value test (under common law principles rather than statute, as for repairs).