Cases - Boldmark Ltd v Cohen and another

Record details

Name
Boldmark Ltd v Cohen and another
Date
(1985); [1986]; (1987)
Citation
277 EG 745; 1 EGLR 47; 19 HLR 135, CA
Legislation
Keywords
Commercial property – landlord and tenant – service charge - terms of lease – reimbursement of interest - whether the lessor could recover interest on sums borrowed to carry out maintenance and provide services in accordance with the obligations under the lease
Summary

A tenant was liable to pay a percentage of costs, expenses and outgoings incurred in carrying out maintenance of a block of flats. The lease included for payments of such other sums as the lessors may from time to time expend in respect of the general administration and management of the block. The landlord sought to recover interest on money borrowed in order to carry out maintenance or provide services in accordance with the contractual obligations. The Court of Appeal held that, although in some circumstances express provision in a lease enabling tenants to be charged interest might be sensible, the lease in this case did not provide for reimbursement of interest by clear and unambiguous words and therefore the lease, on proper construction, was not capable of including interest payments.