Cases - Hill Samuel Life Assurance Ltd v Preston Borough Council
Record details
- Name
- Hill Samuel Life Assurance Ltd v Preston Borough Council
- Date
- (1990)
- Citation
- 2 EGLR 127 or NPC 78
- Legislation
- Keywords
- Commercial property – landlord and tenant – rent review – market rack rental value – ground rent increased at regular intervals – hypothetical letting value of premises at the review date – no express assumption of vacant possession – whether the market rack rental value was to be assessed on the letting of the whole premises with vacant possession
- Summary
-
A long building lease reserved a ground rent which was to be increased at regular intervals in the proportion which the market rack rental value at the date of review compared with the initial market rack rental value of the premises. The market rack rental value was defined by reference to a hypothetical letting of the premises at the review date and there was a direction to disregard the occupation of the tenants and any subtenants, but there was no express assumption of vacant possession. The tenants successfully argued that the market rack rental value was to be assessed on the letting of the whole premises with vacant possession.