The Court of Appeal, in the conjoined appeals of London Trocadero (2015) LLP v Picturehouse Cinemas Ltd and Bank of New York Mellon (International) Ltd v Cine-UK Ltd, once again vindicated beleaguered landlords by refusing to imply terms into professionally negotiated leases.  Tenants cannot withhold rent except in circumstances expressly set out in the lease.   

Buttressing the judgment is the reiteration of the stated “fundamental basis” of a lease: it is an estate granting exclusive possession for a fixed term, in consideration for payment of rent. The tenants’ frustrated intention to use the premises as a cinema was not sufficient to cause a total failure of consideration.Continue Reading The Picturehouse litigation: post-Covid, the Court of Appeal emphasises that contracts are meant to be binding

When acquiring a property for development, covenants that restrict the type or form of development always need to be carefully considered. There are a number of ways in which restrictive covenants can be addressed, and in two recent cases developers sought to have the relevant restrictive covenants discharged following the grant of planning permission.Continue Reading When are restrictive covenants not development constraints?

Introduction

Reform of the regime governing residential long leaseholds (leases of dwellings for a term of twenty one years or more) has been going on for over fifty years.  The latest reform is to restrict a landlord’s ability to charge ground rent on top of an initial premium paid on the grant of the lease.  Ground rent is a sum the tenant pays annually, in addition to the lump sum for the lease itself.  Unlike insurance rent and service charges which the tenant must also pay, ground rent is seen as an ongoing windfall for the landlord, as it is not referable to provision of a service.Continue Reading Leasehold Reform (Ground Rent) Act 2022

Following the introduction of the Government’s Levelling Up and Regeneration Bill  to the House of Commons on 11 May 2022, we follow up on our article Levelling Up – Government to play matchmaker on the high street? with an overview of the proposed legislation.

In brief, the Levelling Up and Regeneration Bill  (the “Bill”) establishes a statutory notice procedure to be followed by local authorities before a rental auction can be carried out and the landlord required to grant a short-term tenancy to the “successful bidder”.Continue Reading Levelling Up and Regeneration Bill – High Street Rental Auctions

Last week the UK Government published its long-awaited proposals for reform of the planning system in England and Wales, in the Levelling-Up and Regeneration Bill.

Back in June 2020, radical reforms to the planning system were proposed, including introducing zoning and deemed planning permission in designated growth areas.  Despite the abandonment of these far-reaching reforms, the proposals set out in the Bill, are significant.  The main changes are as follows.Continue Reading Levelling Up and Planning Reform

The Government’s recent Levelling Up the United Kingdom White Paper announced the intention to give local authorities the power to require landlords to rent out long-term vacant properties on the high street to tenants such as local businesses and community groups. This is primarily targeted at addressing the social problems associated with high streets that have high vacancy rates. Very little detail has so far been announced and we await the release of the Levelling Up Bill after the Queen’s Speech on 10 May 2022.

In this article we will consider some questions arising out of the White Paper, and we will follow up on the detail once the Bill is released.Continue Reading Levelling Up – Government to play matchmaker on the high street?

Introduction

From the Domesday Book of William the Conqueror, to the establishment of the Land Registry, identifying the owner of a piece of land has had a long history in the UK.  Whilst William wanted to know the extent of his conquered lands so he could tax his new subjects, and land registration was introduced to make conveyancing and mortgages easier, the Economic Crime (Transparency and Enforcement) Act (the “Act”) has a more high minded purpose.  It is intended to make public the “real” identity of foreign proprietors owning land in the UK and thus discourage bad actors from investing in English real estate.Continue Reading The Economic Crime (Transparency and Enforcement) Act: what to expect

After a long period of uncertainty, HMRC have finally issued their decision as to whether or not valued added tax (“VAT”) is chargeable on dilapidations payments.

Historically, dilapidations payable by a tenant at the end of a lease had not been subject to VAT.  The payment was to compensate the landlord for having its premises returned in disrepair, contrary to the tenant’s promise to keep them in repair.  Truly compensatory payments have historically been treated as not subject to VAT as it was considered they were not payments for a supply of goods or services.Continue Reading As you were! HMRC decides no VAT payable on dilapidations payments after all

The tragic events in Ukraine have caused Western governments to take various steps to cause economic damage to the Russian state, Russian companies and Russian nationals. In coordination with other governments, the UK Government has imposed escalating sanctions, which we are tracking here.

As part of this approach the UK Government has also brought forward the publication of the Economic Crime (Transparency and Enforcement) Bill (the “Bill”) – indeed Prime Minister Boris Johnson said that “There is no place for dirty money in the UK. We are going faster and harder to tear back the façade that those supporting Putin’s campaign of destruction have been hiding behind for so long. Those backing Putin have been put on notice: there will be nowhere to hide your ill-gotten gains.”Continue Reading The new economic crime bill – greater transparency of property ownership in the UK?

At last we have some clarity on the shape of the statutory arbitration scheme, which deals with the rent arrears – including service charges and interest – built up by businesses forced to close or restrict their activities during the pandemic (“protected rents”).
Continue Reading The Commercial Rent (Coronavirus) Bill: more uncertainty for landlords