Landlord Protect Ltd v St Anselm Development Company Ltd [electronic resource]
Landlord Protect Ltd v St Anselm Development Company Ltd [electronic resource]
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[2009] EWCA Civ 99, 20 February 2009. A landlord will not normally be able to ask for further protection as a condition for agreeing to transfer a lease. A tenant agreed to purchase a head lease from its head landlord. It was agreed that the tenant give a guarantee. A dispute then arose over the extent of the guarantee. The freeholder was only prepared to grant consent if the tenant's director acted as guarantor. The tenant said this was unreasonable because the freeholder would not release the Director if any new tenant could not provide a satisfactory replacement and asked for its deposit back. After loosing an initial case (see L144537), it went to the Court of Appeal. Held: appeal allowed. The freeholder could only require a guarantee from the Director while he is a tenant. It would be unreasonable if a guarantor was liable after its tenancy was over and inappropriate for the purposes of the Common Auction Conditions. The tenant was entitled to the return of its deposit. Straudley Investments Ltd v Mount Eden Land Ltd (No1) applied.
STRAUDLEY INVESTMENTS LTD V MOUNT EDEN LAND LTD
LANDLORD AND TENANT ACT 1988
LANDLORD PROTECT LTD V ST ANSELM DEVELOPMENT CO LTD
England and Wales--1543-
[2009] EWCA Civ 99, 20 February 2009. A landlord will not normally be able to ask for further protection as a condition for agreeing to transfer a lease. A tenant agreed to purchase a head lease from its head landlord. It was agreed that the tenant give a guarantee. A dispute then arose over the extent of the guarantee. The freeholder was only prepared to grant consent if the tenant's director acted as guarantor. The tenant said this was unreasonable because the freeholder would not release the Director if any new tenant could not provide a satisfactory replacement and asked for its deposit back. After loosing an initial case (see L144537), it went to the Court of Appeal. Held: appeal allowed. The freeholder could only require a guarantee from the Director while he is a tenant. It would be unreasonable if a guarantor was liable after its tenancy was over and inappropriate for the purposes of the Common Auction Conditions. The tenant was entitled to the return of its deposit. Straudley Investments Ltd v Mount Eden Land Ltd (No1) applied.
STRAUDLEY INVESTMENTS LTD V MOUNT EDEN LAND LTD
LANDLORD AND TENANT ACT 1988
LANDLORD PROTECT LTD V ST ANSELM DEVELOPMENT CO LTD
England and Wales--1543-