Cases - Equity & Law Life Assurance Society plc v Bodfield Ltd
Record details
- Name
- Equity & Law Life Assurance Society plc v Bodfield Ltd
- Date
- (1987)
- Citation
- 1 EGLR 124, CA
- Legislation
- Keywords
- Commercial property – landlord and tenant – rent review – hypothetical lease – gearing provision – whether the gearing provision was to be excluded from the hypothetical letting
- Summary
-
A long lease of industrial premises provided for rent to be reviewed to 85% of the rent which the premises would fetch on the open market 'upon the terms of this lease other than as to duration and rent'. It was plain that the 85% 'gearing provision' ought to be excluded from the hypothetical lease in order to determine the net rental value to which the 85% would be applied. Therefore the 'gearing provision' was a 'term ... as to ... rent' which the clause required to be excluded from the hypothetical letting. However, since the 'gearing provision' was part and parcel of the review clause itself, on this wording one could not avoid excluding the entire rent review provisions from the hypothetical letting.