Twists and turns
Series: Estates Gazette ; (0424) 12 June 2004, 140-142(3)Publication details: 2004Subject(s): Summary: Article advises how to keep leases simple, by basing rent review clauses on reality and the actual lease and the subject matter of that lease. At rent review, if there is ambiguity in the drafting of a rent review clause, courts will usually follow the lease rather than take into account what the tenant gets, even if the result makes little commercial sense. This article discusses one aspect of this commercial purpose approach, which is the presumption of reality , where the courts try to ensure that the valuation exercise remains as close to reality, as possible in the lease and its subject matter. Outlines "Canary Wharf Investments v Telegraph Group Ltd" ([2003] EWHC 1575 (Ch), [2003] 46 EG 132, Abs67266) where Canary Wharf tried to apply the presumption of reality and summarises the Judge's review of the natural meaning of open market rent.| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| Journal article | London Journal article | ABS67949 (Browse shelf(Opens below)) | 1 | Available | 126616-1001 |
Article advises how to keep leases simple, by basing rent review clauses on reality and the actual lease and the subject matter of that lease. At rent review, if there is ambiguity in the drafting of a rent review clause, courts will usually follow the lease rather than take into account what the tenant gets, even if the result makes little commercial sense. This article discusses one aspect of this commercial purpose approach, which is the presumption of reality , where the courts try to ensure that the valuation exercise remains as close to reality, as possible in the lease and its subject matter. Outlines "Canary Wharf Investments v Telegraph Group Ltd" ([2003] EWHC 1575 (Ch), [2003] 46 EG 132, Abs67266) where Canary Wharf tried to apply the presumption of reality and summarises the Judge's review of the natural meaning of open market rent.