Retail took a big hit in 2022 with 17,145 shops closing, a 50% increase on 2021. Large and small names alike were effected: Joules, M&Co and T M Lewin were hit hard, totalling 6,055 shop closures and 151,500 jobs lost. 1/3 of these closures were due to insolvency and the rest because of need to … Continue Reading
We have recently seen what may be the first award made under the arbitration scheme established under the Commercial Rent (Coronavirus) Act 2022. Ernest Jones and H Samuel, jewellery retailers, has been ordered to pay £450,000 in unpaid office rent, where it had been argued that the offices, its headquarters, served purely to support its … Continue Reading
Tucked away in Part 8 of the Levelling-Up and Regeneration Bill is a provision that may alarm commercial landlords. This provides for local authorities to intervene in the normal commercial landlord and tenant relationship and agree lettings of vacant high-street premises through auction. The Bill gives the local authority the right to act where high … Continue Reading
In a move which has shocked the property industry, the government has extended the ban on commercial lease forfeiture again, this time for a further nine months to 25 March 2022. Commercial Rent Arrears Recovery is similarly deferred, with tenants having to have built up 554 days of unpaid rent before landlords are able to … Continue Reading
Hair salon chain Regis’s company voluntary arrangement (CVA) was revoked on 17 May in a hearing that considered several arguments put forward by a number of landlords. The judge found that one of the creditors had been incorrectly categorised by the nominees as critical, and that this treatment unfairly prejudiced the landlords. On that ground … Continue Reading
The government has today published a code of practice for commercial property relationships, seeking to codify what should be existing good practice between commercial landlords and their tenants during these extremely difficult times for businesses on both sides. It recognises that everyone is impacted and that businesses should operate reasonably and responsibly to provide support … Continue Reading
Will landlords be able to keep tenants on the hook and will leases continue even when tenants try to exercise a break right? In the current state of COVID-19 lockdown it could be more difficult for tenants to effectively break the term of a lease. Can a break right be validly exercised when a tenant … Continue Reading
Where a landlord is owed rent, the first instinct may be to reach for the bailiffs to carry out Commercial Rent Arrears Recovery (CRAR) and remove the tenant’s goods. The case of Thirunavukkrasu v. Brar and another reminds us of the dangers of exercising CRAR in situations where a landlord may also look to forfeit the … Continue Reading
Landowners have historically put unproductive parts of their land to use by allowing telecoms operators to site apparatus on them and charging the operators market rents. Increasingly, digital communication is perceived as a basic need, similar to gas, electricity and water, therefore demand for suitable sites to provide the infrastructure will only increase, particularly with … Continue Reading
In a painstaking judgment handed down yesterday morning, Marcus Smith J held that in the event that the United Kingdom does leave the European Union, as it is set to do on 29 March, this action does not operate to frustrate a lease entered into by the European Medicines Agency (EMA). The EMA is an … Continue Reading
The RICS Professional Statement on Service Charges in Commercial Property (the Professional Statement) comes into force for service charge periods commencing on or after 1 April 2019. What is it and why should we take notice? Unlike previous codes of practice on service charges, this one has been published as a professional statement, meaning it … Continue Reading
The recent case of Vastint Leeds BV v Persons Unknown is a welcome decision for developers, who are concerned about the possibility of trespassers on large development sites. Vastint Leeds BV’s (Claimant) development site on the site of the old Tetley Brewery and adjacent land in Leeds has suffered in the past from trespassers. Due … Continue Reading
Viability assessments for affordable housing have long been a source of frustration for developers. This difficult element of the planning phase is often the cause for delays in getting a development to the point where works can start. There is hope on the horizon in respect of one aspect at least however: a recent ruling should … Continue Reading
The case of No.1 West India Quay (Residential) Ltd v East Tower Apartments Ltd surprised the legal profession in 2016 when the court held that one bad reason for refusing consent to assign a lease effectively trumped two other good reasons, making the landlord’s refusal unreasonable. This decision provides some welcome pragmatism for landlords, residential … Continue Reading
We have posted previously about the case of EMI Group Ltd v O&H Q1 Ltd, in which the court was asked to decide whether a tenant can assign its tenancy to its guarantor. In this case, EMI Group were the guarantor of original tenant HMV, and were arguing that the lease had been validly assigned … Continue Reading
How can landlords make sure they can claim for the diminution in the value of their reversion when the lease of a dilapidated property comes to an end? Doing no work but hoping to claim was not a successful strategy for the landlord in the case of Car Giant Limited and Acredart Limited v The … Continue Reading
We are often asked by landlords whether tenants need to completely strip out premises including partitioning when they are required to deliver up vacant possession. This is most common when break clauses are conditional on delivering vacant possession. What does vacant possession mean? In the leading case (NYK Logistics Limited –v– Ibrend Estates), it was … Continue Reading
Be aware of the consequences of negotiating an early break right in a renewal lease. The flexibility that this might bring will come at a cost. On a 1954 Act lease renewal, the court has power to determine the rent for the renewal lease. The Court assesses the rent for which those premises “might reasonably … Continue Reading
Commercial landlords know that if a tenant fails to pay rent and the lease contains a forfeiture clause, the landlord can forfeit the lease by peaceable re entry i.e by changing the locks when the tenant is not in the premises. It can be a useful self-help remedy but it is limited by the tenant’s … Continue Reading
How much redevelopment and refurbishment work can a landlord do when it has a tenant in occupation? The recent case of Timothy Taylor Limited v Mayfair House Corporation provides a useful reminder of the obligations owed by landlords to tenants where they want to carry out redevelopment works to a building around a tenant of … Continue Reading
The recent case of Flanders Community Centre Limited v Newham London Borough Council has provided us all with a dramatic reminder of how important the role of the expert witness is at trial. Whilst most lease renewal cases don’t go to trial, those that do need careful preparation and early instruction of experts to ensure … Continue Reading
We have written before on the subject of Landlords’ remedies when there is a pre-pack administration where a new company is formed to buy the viable part of the business and is put into occupation by the administrators without even prior notice to the landlord let alone landlord’s consent.… Continue Reading
We are finding that some of our clients are shocked by the recent radical changes to the system of court fees. The changes have made larger claims much more expensive to commence. As a result, landlords may lose the settlement leverage that used to be exerted through the issue of a claim and genuine claims … Continue Reading
This post was written by Katherine Campbell and Siobhan Hayes. We have just had a reminder that a landlord’s obligation to pay rates can arise when it has the legal right to take possession even though it is careful not to do so. The case in question is Schroder Exempt Property Unit Trust v Birmingham … Continue Reading
