Cases - Langham House Developments Ltd v Brompton Securities Ltd
Record details
- Name
- Langham House Developments Ltd v Brompton Securities Ltd
- Date
- (1980)
- Citation
- 23 EGLR 117 or 256 EG 719
- Legislation
- Keywords
- Commercial property – mixed use property - rent review – market rent – open market - clause expressly disregarded “any statutory restrictions on the amounts of rentals” – referral to independent chartered surveyor – whether, on the proper construction of the clause, the effect of statutory rent control in respect of residential lettings was to be ignored – whether the independent chartered surveyor was to act as expert or arbitrator
- Summary
-
The rent review clause of a mixed use building required the rent to be fixed on a hypothetical letting of the premises in the open market. It did not specify an assumption of vacant possession but it did contain a disregard of 'any statutory restrictions on the amounts of rentals'. It provided that any dispute was to be determined by an independent chartered surveyor, but did not state whether he was to act as an expert or an arbitrator. Part of the premises comprised residential accommodation which was let at registered rents.
The landlord successfully argued that the express direction to disregard any statutory restrictions on the amounts of rentals must be given its normal meaning and therefore the effect of statutory rent control in respect of the residential sublettings was to be ignored.
The independent chartered surveyor who would determine any dispute over the review would have to act as an expert and not an arbitrator, since other provisions in the lease expressly provided for disputes to be referred to arbitration and the rent review clause did not.