Cases - CBS UK Ltd v London Scottish Properties Ltd

Record details

Name

CBS UK Ltd v London Scottish Properties Ltd

Date

[1985]

Citation

2 EGLR 125

Legislation

Landlord and Tenant Act 1954

Keywords

Lease renewal - length of new term

Summary

The tenant wanted a short term to enable it to vacate the premises in an orderly way but the landlord contended for a 14-year term. The court gave little weight to the landlord's argument that the grant of a short term would diminish the value of its reversion or to its evidence that in the open market it would be able to achieve a letting of 15 to 20 years with 5-yearly reviews. There was no evidence that the landlord was intending to sell its reversion and that it would in fact suffer a realisable loss on sale. Further, the primary purpose of the Act was to protect the tenant who would have had difficulties disposing of a 13-year term. The landlord was properly protected because 11 months gave it sufficient time to find a new tenant and avoid a negative cash flow.