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A few months ago, we discussed a case (click here) where the Court of Appeal ruled that the wording of a lease precluded the tenant from arguing that certain costs should not have been included in the service charge calculation.
A recent high-profile case concerns a broadly similar issue, but this time in relation to the proportion of the landlord’s costs payable by a tenant. In this case, the tenant was liable to pay a fair proportion to be determined by the landlord or its surveyors. The court ruled that where it made no financial difference to the landlord how costs were divided between tenants, the landlord could (subject to rationality) be trusted to make a subjective decision which could not be challenged in court.
Both of these cases show the importance for tenants of drafting leases to allow a tenant to challenge any part of the landlord’s determination as to its overall service charge liability. Otherwise, a tenant may have no recourse if it disagrees with any element of the landlord’s determination.
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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