Ashworth Frazer Ltd v Gloucester CC
Ashworth Frazer Ltd v Gloucester CC
- 1997
- Estates Gazette [1997] 26 EG 150-155(6) .
CA 20 January 1997. The appellant A rented an old cattle market from the council under a development lease, covenanting to develop the site. Rent review provisions stated that the received rent was to be a rent geared to 8% of `the rack rents receivable by the lesses in repect of the demised premises on the relevant date`. A did not sublet the site but disposed of parts to different tenants each holding direct from the council. HC held that there were no rack-rents receivable and therefore no figure to which the 8% could attach. The council`s appeal was allowed on the grounds that the fact that the property was not sublet was irrelevant. The 8% should be of a fair market rent of developed property if sublet.
ASHWORTH FRAZER LTD V GLOUCESTER CITY COUNCIL
DEVELOPMENT LEASE
RACK RENT
RENT REVIEW
CA 20 January 1997. The appellant A rented an old cattle market from the council under a development lease, covenanting to develop the site. Rent review provisions stated that the received rent was to be a rent geared to 8% of `the rack rents receivable by the lesses in repect of the demised premises on the relevant date`. A did not sublet the site but disposed of parts to different tenants each holding direct from the council. HC held that there were no rack-rents receivable and therefore no figure to which the 8% could attach. The council`s appeal was allowed on the grounds that the fact that the property was not sublet was irrelevant. The 8% should be of a fair market rent of developed property if sublet.
ASHWORTH FRAZER LTD V GLOUCESTER CITY COUNCIL
DEVELOPMENT LEASE
RACK RENT
RENT REVIEW