Cases - Graysim Holdings Ltd v P&O Property Holdings Ltd

Record details

Name
Graysim Holdings Ltd v P&O Property Holdings Ltd
Date
[1996]; [1993]
Citation
AC 329; 05 EG 141
Legislation
Keywords
Landlord and tenant – business premises – market stalls – subletting and parting with occupation for business use by subtenants - whether in occupation and landlord entitled to oppose tenant’s application for grant of new tenancy – Landlord and Tenant Act 1954, s23
Summary

[1996]

Landlord and tenant – business premises – market stalls – subletting and parting with occupation for business use by subtenants - whether in occupation and landlord entitled to oppose tenant’s application for grant of new tenancy – Landlord and Tenant Act 1954, s23

P&O sought to terminate Graysim's lease of a property divided into 35 separate market stalls, which Graysim sublet to stallholders under a series of written agreements, retaining only the common parts of the property and some service accommodation. P&O succeeded. The House of Lords held that Graysim were not in 'occupation' as envisaged by the 1954 Act, which required some physical use by the tenant. The business use was being carried on by the stallholders. Two separate persons, not acting jointly in a business, could not both occupy the property at the same time.

[1993]

Where carrying out the works without obtaining possession of the premises would have cost the landlord an additional £33,000, it was held to be unreasonable.