Cases - Church Commissioners for England v Metroland Ltd
Record details
- Name
- Church Commissioners for England v Metroland Ltd
- Date
- [1996]
- Citation
- EGCS 44
- Legislation
- Keywords
- Commercial property – landlord and tenant – service charge – terms of lease – implied terms – whether there was a term implied into the lease that the landlord would credit interest earned so as to give the lease business efficacy
- Summary
-
It was held that there could be no implication into the lease of an obligation for the landlord to credit interest earned to the service charge to give it business efficacy. Interest was specifically mentioned in relation to certain matters such as the sinking fund and the lease also contained a specific term relating to interest on money borrowed. Whilst interest may be earned on money received in advance, landlords may equally incur a deficit as payments are made out. Landlords often deal with this by retaining the rent fund in order to avoid borrowing money and balance the separate accounts.