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A landlord did not demonstrate the requisite intention required to oppose a statutory lease renewal under ground (g).
The landlord (M) served a notice on its tenant in relation to a restaurant in Exeter under section 25 of the Landlord and Tenant Act 1954 (the 1954 Act) opposing renewal on ground (g) (in section 30(1) of the 1954 Act) (the landlord intends to occupy the holding for the purpose of a business to be carried on by him). M’s stated intention was to use the property as a bistro.
Was the County Court judge correct in deciding that M had not shown a sufficiently formed intention of its plans?
M had not shown the subjective element required to satisfy ground (g). There was no reason to overturn the County Court judge’s decision, who had not been satisfied on the evidence that M’s plans had been fully formed. In particular, there was a lack of any significant financial commitment to progress any plans and the accountants (involved in business planning) and M’s children (said to be involved in the new business venture) had not been called to give evidence in support.
Whilst there is no new law here, the case is a useful reminder of the level of intention that a landlord has to show to satisfy both grounds (f) (the redevelopment ground) and ground (g). In particular, a landlord has to show:
The new regime introduced by the Act will take shape over the next 18 months, but those who design, build or manage high rise buildings are being urged to get ready for the changes to be introduced through the act.
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On 14 February 2022, Secretary of State of the Department for Levelling Up, Housing and Communities, Michael Gove, announced proposals designed to pressure building developers and materials manufacturers to fund the remediation of unsafe properties.
A tenant in Scotland had validly exercised a break option even though it failed to pay VAT on the break premium.
The court provides some useful guidance on the different types of endeavours obligations and good faith clauses.
The content on this page is provided for the purposes of general interest and information. It contains only brief summaries of aspects of the subject matter and does not provide comprehensive statements of the law. It does not constitute legal advice and does not provide a substitute for it.
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