Cases - Basingstoke and Deane Borough Council v Host Group Ltd
Record details
- Name
- Basingstoke and Deane Borough Council v Host Group Ltd
- Date
- (1987)
- Citation
- 2 EGLR 147, CA
- Legislation
- Keywords
- Commercial property – landlord and tenant – rent review – lease provided for rent review to be based on the hypothetical letting of the premises as a bare site only – presumption of reality - whether the hypothetical lease should be assumed to be a lease on the same terms and for the same use as the actual lease
- Summary
-
The rent review clause in a long building lease of a public house provided for the new rent to be based on the hypothetical letting of the premises as a bare site only, clear of all building, disregarding tenant's occupation, goodwill and licence. It did not state that the terms of the hypothetical lease were to be the same as the actual lease and the landlord argued that the hypothetical lease terms should be whatever would have been reasonable for a lease of a bare site at the review date and also that the site should be assumed to be available for development for any use for which planning permission might be obtainable. The tenant successfully argued that the hypothetical letting should be assumed to be a lease on the same terms and for the same use as the actual lease, following the presumption of reality laid down in British Gas Corporation v Universities Superannuation Scheme (1986) and Equity & Law v Bodfield (1987).