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Landlord and tenant (general).

The editor of this section of the site is Sarah Thompson-Copsey

Landlord’s consent to tenant’s planning application

Reasonableness of refusal

Hautford Ltd v Rotrust Nominees Ltd
[2016] B 01 CL 455

(The report on this case was published in February 2017 and is available from the website of Wilberforce Chambers here)

Summary

The landlord unreasonably withheld consent to tenant’s application for consent to apply for planning approval, even though planning approval might pave the way for the tenant to claim enfranchisement under the Leasehold Reform Act 1967.

Facts

T was the tenant of a 6-storey building under the terms of a lease dated in 1986 for a term of 100 years at a peppercorn rent. The lease restricted use of the premises to:
    “..one or more of the following purposes(a) retail shop (b) offices (c) residential purposes (d) storage (e) studio..”. The lease also provided that the tenant should not, “apply for any planning permission without the prior written consent of the Landlord such consent not to be unreasonably withheld”
T sub-let the whole of the premises to a sub-tenant (ST) which traded as an ironmonger from the basement and ground floors. The 1st & 2nd floors had until shortly before trial been used for some years by ST for storage and as a staff room; the 3rd & 4th floors had been used for residential purposes since the commencement of the lease (although vacant at the time of trial).

ST wished to be able to rent out all the upper floors to residential tenants in order to maximise its income from the premises. Listed building consent was obtained fo ... THIS IS AN EXTRACT OF THE FULL TEXT. TO GET THE FULL TEXT, SEE BELOW

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