If the hood/tilt is fitted correctly to your series Land Rover and is properly water-proofed, it should be as effective as a hardtop in keeping the rain out. Problems begin when the canvas itself has lost its waterproofing. It can be re-water-proofed however and 'Fabsil' is the best water-proofer to use. If you can't find it locally, Ebay Australia will list it, though it may have to be supplied from overseas. If rain is entering through gaps in the hood then check that hood sticks are not bent or that there are no lashing fixings missing.
Canvas will always try to shrink when wet. If it is not lashed down very tight this shrinkage will cause you more leakage problems later on. Unfortunately, you cannot stretch a hood once it has shrunk, so always make sure that it is lashed down tight before it gets wet. Good quality replacement hoods are available for all models and in a range of colours. If you decide to replace the hood ensure the new one is always lashed tight and regularly check this. If lashing ropes have deteriorated, preventing a proper tie-down, then substitute strong cord, not nylon rope as this tends to slip easily.
Damage can be repaired with canvas patches on the inside using a glue with flexibility and fabric adhering specifications. Stitching can also be done to increase strength but requires two people if the tilt remains in place on the vehicle during the repair. If the glue is a slow setting variety then the stitching holes will also be sealed by the glue. Fabsil also make a sealing compound.
It may be possible to remove hood stains by scrubbing with warm soapy water or liquid detergent. Don't try aggressive cleaning solutions. If the stains are stubborn, the canvas can be repainted with ‘Military Canvas Soft Top Fabric Army Camouflage Paint’ which is available in desert sand, military green, dark earth, foliage green & black. It can be put on with a roller or brush.
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