Cases - Iceland Frozen Foods plc v Starlight Investments Ltd
Record details
- Name
- Iceland Frozen Foods plc v Starlight Investments Ltd
- Date
- (1992)
- Citation
- 1 EGLR 126, CA or 07 EG 117
- Legislation
- Keywords
- Commercial property – landlord and tenant – rent review – hypothetical letting of the whole premises – provision to disregard the tenant’s voluntary improvements -premises capable of being divided into 7 units – tenant having right to sub-divide the premises and sub-let - whether the rental value should reflect the potential for the premises being sub-divided and sub-let
- Summary
-
A lease of large premises, which were physically capable of being divided into seven units, required the rent to be reviewed on the basis of a hypothetical letting of the whole premises, with the usual direction to disregard the effect on rent of tenant's voluntary improvements. The tenant had the right under the lease to divide the premises and to sublet in parts. The landlord argued that the rental value should reflect the potential for the property being subdivided and sublet in parts, but the tenant successfully argued that any actual subdivision by the tenant would be disregarded by virtue of the direction to disregard tenant's voluntary improvements, so the potential for subdivision should also be disregarded.