PropertyLaw.guru Blog

EG 07-11-20

News

P.24 An estimated 20,000 shops closing permanently this year, half of those as a direct result of the pandemic. Retail is likely to disperse from city centres to smaller towns and suburban areas, encouraged by more home-working. The vacant spaces might be re-purposed as local workspaces.


P.85 GP-led transactions (nothing to with doctor’s surgeries btw) - This is where a sponsor of an existing investment fund (“existing fund”) sells all or a portion of the existing fund’s portfolio of assets (like property), to a newly established fund managed by the same sponsor (“continuation fund”) Explains the reasons to do this, and an overview of the issues involved


P.87 Recovering overpaid rent. Where a tenant holds over, the interim rent finally decided might be less than the passing rent paid by the tenant in the meantime. It seems in the pandemic interim rents might be 70-100% of the passing rent paid. This might be backdated as long as 3 years in one case. The lease may deal with this situation, but if not there is nothing in the 54 Act that obliges a refund due if there is rent reduction. If there is an increase then the extra sum will be due, and there is no problem there. What if the reversion changes hands in the meantime. No answers given, but the questions raised need to be addressed in any negotiation.


p.88 Options facing corporates thinking about downsizing their offices, as 50% are apparently considering now. Concession/waiver, surrenders of hole or part, breaks, expiry or assignment are options to consider. Flags up the issues involved in each case including service charges, dilaps, rates etc.


P.90 

Prempeh v Lakhany [2020] EWCA 1422 - lack of landlord’s name and address did not mean a section 8 notice was invalid.


Ghai v Maymask (228) Ltd [2020] UKUT 293.  A registered proprietor sold a property where LPA or fixed charge receivers had been appointed, discharging the charge under which the receivers had been appointed. The receivers were unsuccessful in arguing that the RP had no power to do this - the RP enjoyed ‘owners powers’ under s.24 LRA 02 as there was no restriction registered and the buyer was protected by s.26 LRA02


P.91 Telecoms case - Cornerstone v London & Quadrant Housing Trust [2020] UKUT 282 decided (for the first time in UTT) what terms to impose on a new Code agreement for a rooftop site on a residential block in London. £5k pa for 10 years and commented that the same rate would apply in London or Sheffield or any other part of the country. An important decision worth reading for anyone dealing with this work


P.92 Planning - two appeal decisions re developments near Kew Gardens


P.94 Commercial lease insurance - Colt Group v Unicourt Wandsworth [2020] EWHC 2549. 99 year lease of commercial premises. T insured property in joint names of L & T. T had to apply any insurance monies to reinstate (but no obligation on L). Proposed assignee worried that if insurance monies were paid to L, they would keep them and not reinstate. L refused to vary lease. T made application for a declaration that L would have to use the monies to reinstate or that T would be entitled to the insurance monies. Judge, on the facts of the case,  refused to confirm who got the proceeds if not used for reinstatement but granted a declaration that any insurance monies paid out were to be used for that purpose.(?) Also note that in the case of fire ONLY, the Fires Prevention (Metropolis) Act 1774 enables owners and occupiers to require insurers to use insurance monies to rebuild. Warning to make sure that this is properly covered in any lease drafting

RSS Feed 

This site uses cookies. But unlike WhatsApp, Facebook and the rest we don't trawl your phone and PC for your personal data and sell it to advertisers!