Case Alert - lease renewals

Inclusive Technology v Williamson  [2009] EWCA Civ 718 [2010] L & TR 4

This important case dealt with the issue of a landlord’s change of intention in respect of a potentially litigious lease renewal under the Landlord and Tenant Act 1954.  

  • In this case, the Landlord owned two business units which were let to the tenant. Under the Landlord and Tenant Act 1954, the tenancy of business premises continued at the end of the contractual term, and the tenant had the right to a grant of a new lease, except in certain circumstances as defined in the Act.
  • The Landlord served a s25 notice by the relevant date in 2006 stating that he would oppose the grant of a new tenancy under s30(1)(f) (redevelopment). However, by the end of September, the Landlord had decided to 'hold fire' although 'he still intended to carry out the works ... in the future when the circumstances were right'. However, the Landlord did not inform the tenant of the change of position.
  • At the end of November 2006, the tenant signed a lease for other premises in a nearby building and vacated the units on 15 December 2006.  He subsequently became aware that the refurbishment works had not been carried out.
  • In the Court of Appeal, it was decided that the letter which accompanied the s25 notice was a clear statement of present intention to carry out the works which amounted to a continuing representation. When the landlord’s intention changed the continuing representation became false and therefore a misrepresentation.
  • The Tenant was therefore entitled to compensation under section 37A of the 1954 Act, and compensation was assessed by reference to the difference between the rent that would have been agreed for the premises had the tenant been informed of the true position and the rent payable for the new premises less a discount for early receipt.

For further information on this or any real estate litigation issue, please contact Vanessa Joll by emailing Vanessa or by calling her on 08450 990045, or speak to your usual contact in the Real Estate Team.