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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.
The Government appears set to announce plans on ‘living with Covid to restore freedom’. With the success of the retail and hospitality sector key to recovery, what protections will be on offer to tenants to deal with Covid-19 rent arrears?
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Break rights have proved a fertile source of litigation over the last few years. More often than not, tenants have found themselves on the wrong end of the decisions. However, a Court of Appeal decision yesterday has bucked that trend.
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.
Landlords should reconsider summary judgment if a Part 26A restructuring plan is pending.
Partner and Head of Real Estate
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