Cases - Metropolitan Police District, Receiver For The v Palacegate Properties Ltd

Record details

Name
Metropolitan Police District, Receiver For The v Palacegate Properties Ltd
Date
[2001]
Citation
Ch 131
Legislation
Keywords
Landlord and tenant – court approved draft lease excluding protection of 1954 Act – subsequent alteration to include payment dates for rent – materiality - whether alteration to lease altered nature of tenancy - Landlord and Tenant Act 1954
Summary

The lease between the parties contained an agreement excluding the operation of sections 24-28 of the 1954 Act. When the draft of the lease was submitted to the court with the application for the order authorising the exclusion of security of tenure, certain gaps as to dates were left. The order was made. Before the lease was completed, the gaps were filled in, but it was then noticed that no mention had been made in the draft that the rent should be paid quarterly in advance. The change was made to the engrossment and the lease was granted in its altered form. At the expiry of the term, the tenant did not give up possession, claiming the tenancy was continuing under the 1954 Act because the lease attached to the court order was not the same as the lease which was actually granted.

The Court of Appeal held that the change made to the lease was not of such materiality as to nullify the effect of the court order. The test is whether the change or changes are of such materiality as to alter the nature of the tenancy which has been the subject matter of the court order, so that the issue of whether the tenant is aware of what he is giving up needs to be revisited. For example, a change in the length of term might be material such that the court must again satisfy itself of the tenant's awareness of what he may be losing.

Lease renewal - surrender and attempts to exclude the Act

It was held that a 'term of years' certain includes a tenancy for a term of years which contains a break clause.