Cases - First Leisure Trading Ltd v Dorita Properties Ltd

Record details

Name

First Leisure Trading Ltd v Dorita Properties Ltd

Date

[1991]

Citation

1 EGLR 133

Keywords

Commercial property – landlord and tenant – rent review – arbitrator – hypothetical tenant – whether arbitrator was required to assume that the claimant was or was not a hypothetical tenant –whether there was an effect on rent if the lessee of the hotel were a potential tenant

Summary

Shop premises could only be used as an extension to the Greyhound Hotel in Croydon. It was determined by the court that in assessing the best rent obtainable in the open market that the Arbitrator must take into account the potential value of the property as an extension to the Greyhound Hotel. The Arbitrator was not required to assume that the plaintiff either was or was not a possible hypothetical tenant. It was then up to the Arbitrator to decide what effect on rent there might be if the lessee of the hotel were a potential tenant.