Cases - Plinth Property Investments Ltd v Mott, Hay & Anderson

Record details

Name
Plinth Property Investments Ltd v Mott, Hay & Anderson
Date
(1979)
Citation
1 EGLR 17, CA
Legislation
Keywords
Commercial properties – rent review – hypothetical letting – lease restricted use of premises – when carrying out the rent review, whether it was to be assumed that the landlord would be reasonable in permitting changes of use
Summary

The rent review clause required the rent to be fixed on a hypothetical letting of the premises on the same terms. The lease restricted the use of the premises to offices for the lessee's business of consulting engineers and made no provision for changes of use, even though assignment and underletting of the whole premises would be permitted with landlord's consent not being unreasonably withheld. The landlord argued that the rent review should be fixed on the assumption that the landlord would be reasonable in permitting changes of use, but the tenant successfully argued that it had to be assumed that the landlord would enforce all his rights under the lease and that the rent should be discounted accordingly.