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.

CPI Update 126 - September 2014

Summer 2014 property law case reviews

CPI subscribers can read case reviews in relation to the following recent important property cases, all of which will be fully covered in the next monthly issue of the CPI Update:

Hicks v 89 Holland Park (Management) Ltd (2014) Ch D (18 July 2014);

Youssefi v Mussellwhite [2014] EWCA Civ 885 (2 July 2014);

Schroder Exempt Property Unit Trust & Anor v Birmingham City Council [2014] EWHC 2207 (Admin) (10 July 2014);

Liability for business rates following a lease disclaimer

Who is liable for business rates after a lease has been disclaimed? Despite a valiant attempt by the landlord in Schroder Exempt Property Unit Trust & Anor v Birmingham City Council [2014] EWHC 2207 (Admin) to persuade the court to the contrary view, the effect of a disclaimer of a lease by a liquidator is to end the lease, so that the landlord’s reversion is accelerated, the landlord becomes the person entitled to immediate possession, and is therefore the person liable for business rates.