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With the current publicity over the rating revaluation coming in next month alongside proposed changes to the appeals process, today’s Supreme Court decision will come as a relief to embattled ratepayers.
The Court of Appeal had ruled that a property stripped to a shell whilst substantial refurbishment was being undertaken (configuring a single office into three separate units) should still be valued as if it were in a reasonable state of repair. The Supreme Court disagreed and applied instead the ‘reality principle’ (i.e. a property should be valued as it in fact existed on the material day). In this case, the property was not capable of beneficial occupation (and so the rateable value should be reduced to £1).
Today’s decision should help to make the refurbishment of properties more affordable for property owners and should mean that no rates are payable when no income is being received from a property because substantial works are being carried out to it.
One of the requirements for tenants to contract out of the security of tenure regime contained in the Landlord and Tenant Act 1954 is that they make a simple or statutory declaration before entering into the lease.
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Landlords should reconsider summary judgment if a Part 26A restructuring plan is pending.
A landlord’s claim for summary judgment to recover rent and service charge arrears accrued since the start of the pandemic against a non-essential retailer succeeded. Like London buses, a second such case has followed hot on its heels.
Whilst this decision may not be surprising, it will undoubtedly send a chill down the spine of retailers in a similar position to The Fragrance Shop.
Partner and Head of Real Estate
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