Cases - Trusthouse Forte Albany Hotels Ltd v Daejan Investments Ltd (No. 2)

Record details

Name

Trusthouse Forte Albany Hotels Ltd v Daejan Investments Ltd (No. 2)

Date

[1989]

Citation

1 EGLR 133

Legislation

Town and Country Planning (Use Classes) (Scotland) Order 1997

Keywords

Commercial property – rent review – hypothetical letting – rent review clause providing for assessment to be based certain parts of premises being 'actually let or … available for letting for shopping and retail purposales' – whether the rent review clause required an assumption that the landlord had carried out any necessary conversion works for the use specified in the rent review clause

Summary

The rent review clause in the lease of a hotel required rent to be assessed on the basis that certain parts, which were used for the hotel, 'are actually let or are available for letting for shopping and retail purposes'. This required an assumption that these areas could be used as shops under the hypothetical lease and under planning law but did not require an assumption that the landlord had carried out any necessary conversion works for such use. (This decision was not challenged when other issues in the case were appealed).