Cases - London and Leeds Estates Ltd v Pariba Ltd
Record details
- Name
- London and Leeds Estates Ltd v Pariba Ltd
- Date
- [1993]
- Citation
- 2 EGLR 149 or NPC 59, CA
- Legislation
- Keywords
- Commercial property – rent review –open market – voluntary improvements - rent review clause provided that the premises were “fit for immediate occupation and use and in a state of good repair and condition and that all fitting out and other tenant's works required by such willing tenant have already been completed” – whether the rent review clause justified an enhanced rent reflecting premises which had been fitted out by the landlord to suit the willing tenant – whether the tenant’s actual fit out should be disregarded under the usual direction
- Summary
-
The rent review clause contained an assumption that the premises 'are fit for immediate occupation and use and in a state of good repair and condition and that all fitting out and other tenant's works required by such willing tenant have already been completed' and also directed the disregarding of 'any effect on rent of the absence of any rent free period or contribution toward fitting out costs or other inducements which might then be the practice in the open market to make or allow tenants on a new letting with vacant possession'. The landlord argued that the first provision justified an enhanced rent reflecting premises which had been fitted out by the landlord to suit the willing tenant, and the tenant argued that, on the contrary, there was to be an assumption that the willing tenant would have to bear the cost of fitting out the premises. The court declared that it was to be assumed that the hypothetical willing tenant would not require any different fitting out work from that carried out by the actual tenant and that the purpose of the first provision was merely to prevent the tenant from seeking a discount to reflect fitting out costs. The tenant's actual fit out was to be disregarded under the usual direction to disregard tenant's voluntary improvements.