Cases - Amarjee v Barrowfen Properties Ltd

Record details

Name
Amarjee v Barrowfen Properties Ltd
Date
[1993]
Citation
2 EGLR 133
Legislation
Keywords
Lease renewal - other terms of the tenancy - alienation - rent review provisions
Summary

In this case, the current tenancy had been made orally and did not contain the comprehensive covenants one would expect in a written tenancy agreement. In departing from the terms of the oral tenancy the judge expressed the view that de facto terms that may be deduced from the conduct of the parties during the operation of an informal tenancy were of far less weight than the express terms of a formal lease.

The tenant sought to include in the new lease a clause that would relieve it of continuing liability following assignment. The judge refused to include such a non-recourse alienation provision which he found would be almost unheard of and that would have a potentially adverse effect on the value of the reversion. It should be noted that this case was decided prior to the 1995 Act.

The court inserted an upwards-and-downwards rent review clause indicating that such clauses have the obvious merit of fairness.