Recent news

A contracting purchaser has no capacity to create a proprietary right.

The Supreme Court judgment in Scott v Southern Pacific Mortgages Ltd & Ors [2014] UKSC 52 relates to a residential property sale and lease back (equity release) scheme that went badly wrong for the owners of various properties in the North East. The finding of the Supreme Court confirms how badly wrong the scheme went. However, the reasoning given by the Court raises issues for transactions beyond those in this case.

Liability under professional consultants' certificates requires reliance

The case of Hunt & Ors v Optima (Cambridge) Ltd & Ors [2014] EWCA Civ 714 involves claims by eight purchasers against Optima, the developer of a block of flats, and Strutt & Parker (S&P) who were engaged by the developer to issue architects’ certificates to purchasers of flats in relation to the construction work.

Group assignments and the “repeat” parent company guarantee

Since the Court of Appeal’s decision in K/S Victoria Street v House of Fraser (Stores Management) Ltd [2011] EWCA Civ 904, concerns have existed over those post-1995 Act leases (and there are many) in respect of which a group assignment clause had been included to provide an element of freedom to assign the lease within the original tenant’s group of companies, provided the parent body guarantor of the original tenant committed to a repeated parent body guarantee in respect of all assignees within the group.

Recent CPI Updates

Restraining possible breaches of covenant by injunction

How willing are the courts to order an interim injunction to restrain a possible breach of a restrictive covenant? This was a point considered in Hicks v 89 Holland Park (Management) Ltd (2014) Ch D (18 July 2014).

Is your lease user covenant restrictive or positive?

The case of Youssefi v Mussellwhite [2014] EWCA Civ 885 appears to be little more than an opposed business lease renewal dispute involving various fault grounds under section 30(1) of the Landlord and Tenant Act 1954. However, there are one or two other interesting features to the case - most notably the interpretation of the lease user covenant.

Who is liable for business rates after a lease is disclaimed?

The case of Schroder Exempt Property Unit Trust v Birmingham City Council [2014] EWHC 2207 (Admin) examines the liability of a freehold reversioner (i.e. owner of the hereditament) for payment of business rates after disclaimer of a lease of the property.

Recent Q&A

Compensation for public works

If a new major road is built very close to a person’s property, but no part of that property is actually required to be purchased/used for the new road, is it the case that the landowner in questio

What is meant by the phrase “public auction” in the exceptions to section 2 LP(MP)A 1989?

What is meant by the phrase “public auction” in the exceptions to section 2 LP(MP)A 1989? Is an online property auction a public auction?

Notice to Quit under s27(2) L&T Act 1954

1. Can a tenant serve Notice to Quit by e-mail when holding over on a commercial lease?
2. Do the Lease provisions or statutory provisions on Notices govern service in such cases?

Recent CPI Archives

CPI Update 129 - December 2014

The December 2014 issue of the CPI Update deals with the following cases:

  • Robert Hitchins Ltd, R (on the application of) v Worcestershire County Council – avoiding section 106 obligations with a second planning permission.
  • Telchadder v Wickland Holdings Ltd – which breaches of covenant are capable of remedy?
  • Sims v Dacorum BC – how do you terminate a joint tenancy?

...and many more.

CPI Update 128 - November 2014

The November 2014 issue of the CPI Update deals with the following cases:

  • Scott v Southern Pacific Mortgages Ltd – a Supreme Court decision impacting upon sale and lease back deals and sub-sales.
  • Redrow Homes Ltd, R (on the Application of) v Knowsley MBC – future road maintenance costs can be covered by section 38 adoption agreements.

...and much more...

CPI Update 127 - October 2014

The October 2014 issue of the CPI Update and deals with the following cases:

  • Tindall Cobham 1 Ltd v Adda Hotels – how will the courts approach group assignment clauses that fall foul of the House of Fraser case?
  • Hunt v Optima (Cambridge) Ltd – can reliance be placed on architects’ certificates in new development?
  • Rentokil Initial 1927 Plc v Goodman Derrick LLP

...and many more...