The first reported case in which a court has had to apply the ‘new’ test on ground (f) set out by the Supreme Court last year.
The first reported case in which a court has had to apply the ‘new’ test on ground (f) set out by the Supreme Court last year.
The landlord (DI) served a section 25 notice on its tenant (LKS) indicating that DI would oppose the grant of a new lease on the basis of the ground contained in section 30(1)(f) (the redevelopment ground) of the Landlord and Tenant Act 1954.
The lease in question was one of four leases on the ground floor of the same building held by a group of companies (IWG). IWG’s business was the granting of short-term licences to office occupiers and the property in question (Suite C2) comprised facilities available for common use by those occupiers. The building had a large disused basement and DI wanted to restore the basement so it could be let on a commercial basis. On Suite C2 specifically, DI wanted to create a new front entrance and lobby with a new lift and staircase to the basement. DI had previously started works on the basement, but these works had stopped when IWG threatened an injunction because of high noise levels.
Whilst LKS accepted that DI had a subjective intention to carry out the works, it argued that, objectively, DI had no reasonable prospect of being able to do so. IWG would seek an injunction to stop the works proceeding based on noise nuisance and on breaches of covenants for quiet enjoyment and non-derogation from grant. In addition, the fact that there were residential tenants on the upper floors of the building would make it impossible to do the works outside of office hours.
Professional Development Lawyer
david.harris@brownejacobson.com
+44 (0)115 934 2019