Lift ape out of shabby place (7)
I believe the answer is:
fleapit
'shabby place' is the definition.
(I've seen this before)
'lift ape out' is the wordplay.
'out' is an anagram indicator (out can mean wrong or inaccurate).
'lift'+'ape'='liftape'
'liftape' with letters rearranged gives 'FLEAPIT'.
'of' acts as a link.
(Other definitions for fleapit that I've seen before include "Scruffy cinema" , "Run-down place for pictures" , "Shabby place" , "dive?" , "Shabby old cinema" .)