Cases - Avon County Council v Alliance Property Co Ltd
Record details
- Name
- Avon County Council v Alliance Property Co Ltd
- Date
- [1981]
- Citation
- 1 EGLR 110
- Legislation
- Keywords
- Commercial property – landlord and tenant – rent review – rack rental market value – whether an assumption of vacant possession should be implied when considering the rent review
- Summary
-
The rent under a long building lease of a multi-let property was to be reviewed to 70% of 'the rack-rental market value' of the premises. The clause set out the usual hypothetical letting provisions but omitted an assumption of vacant possession. The lease had been granted to the developer as an overriding lease, after the units had been initially let, and it stated that it was subject to the lettings. The tenants argued that the rental valuation had to take account of the existing lettings at the review date but the landlord successfully argued that, notwithstanding the references to the lettings in the lease, an assumption of vacant possession should be implied.