Manders Property (Estates) Ltd v Magnet House Properties Ltd

Manders Property (Estates) Ltd v Magnet House Properties Ltd - 1989 - Estates Gazette (1989) 42 EG 111-116(4) .

ChD 14 April 1989. The property in question is Victoria House, the original building of that name, constructed in 1971 called `the old premises` (O) with an extension added in 1982, `the new premises` (N). The original tenant (G) of O, carried out certain improvements to the shell. By an underlease dated 1977 the landlords (M) granted an underlease to G for 35 years. In 1981 an agreement was entered into between the lessor (MH), M and G stating that G wished to surrender their underlease which M agreed to on the condition of the grant to MH of an underlease comprising N and O was conditional on MH obtaining a building contract for works which included the erection of N. MH was to pay for these alterations but a rent relevant to the new underlease was to be agreed, being 15% of the costs. Rent reviews were to be at five yearly intervals and if agreement was not reached an arbitrator was to be appointed. At the first rent review M and MH failed to agree on the new rent and an arbitrato