Prudential Assurance Company Ltd v Salisbury Handbags Ltd
Prudential Assurance Company Ltd v Salisbury Handbags Ltd
- 1993
- Property and Compensation Reports (1993) 65 PCR 129-136(5) .
ChD 25 March 1992. The defendant, S, was the lessee under an underlease of the premises in question. The plaintiff, P, was the immediate landlord. The rent review clause provided that the rent was to be reviewed every seven years to determine the fair rack rent. This was defined as the best rent at which the premises could reasonably expect to be let on the open market. P contended that the term of the hypothetical lease should be assumed to be the unexpired portion of the underlease. S however contended that the term should be seven years or on terms which provided for rent reviews at seven yearly intervals. It was held that rent reviews were excluded from the hypothetical lease however the term to be assumed was the term that the landlord might reasonably be expected to grant and a tenant to take in respect of a letting at a fixed rack rent.
FAIR RACK RENT
HYPOTHETICAL LEASE
RENT REVIEWS
SEVEN YEAR RENT REVIEWS
ChD 25 March 1992. The defendant, S, was the lessee under an underlease of the premises in question. The plaintiff, P, was the immediate landlord. The rent review clause provided that the rent was to be reviewed every seven years to determine the fair rack rent. This was defined as the best rent at which the premises could reasonably expect to be let on the open market. P contended that the term of the hypothetical lease should be assumed to be the unexpired portion of the underlease. S however contended that the term should be seven years or on terms which provided for rent reviews at seven yearly intervals. It was held that rent reviews were excluded from the hypothetical lease however the term to be assumed was the term that the landlord might reasonably be expected to grant and a tenant to take in respect of a letting at a fixed rack rent.
FAIR RACK RENT
HYPOTHETICAL LEASE
RENT REVIEWS
SEVEN YEAR RENT REVIEWS