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Landlord and Tenant Act 1954 Redevelopment Ground to Be Examined in the Supreme Court

on Friday, 12 October 2018.

S Franses Ltd v The Cavendish Hotel (London) Ltd is due to be heard by the Supreme Court next week. This may have consequences for landlords relying on ground (f) to oppose lease renewals under the Landlord and Tenant Act 1954 (LTA 1954).

The case considers whether a landlord can deny the grant of a new tenancy to a protected business tenant on the redevelopment ground ('ground (f)') of the LTA 1954 where the proposed works are designed solely to satisfy that ground.

In this case, the tenant sought to renew a tenancy protected by the LTA 1954. The landlord wanted to refuse a new tenancy and cited ground (f) in opposition.  Ground (f) allows a landlord to oppose a new tenancy where the landlord intends to carry out works which it could not do if the tenant were to be allowed to remain in occupation.

The landlord came up with a list of works which were aimed to satisfy the ground (f) test.  Both the County Court and High Court have found in favour of the landlord. The courts placed no weight on the fact that works were contrived specifically in order to satisfy ground (f). 

Ground (f) does not itself mention a landlord's motives for works. Previous cases have established that the landlord must have a "firm and settled intention" to carry out the works but that the motive for carrying out the works is irrelevant.  Intention (what a landlord wishes to do) and motive (why that landlord wishes to do it) have been treated independently.

The tenant's representatives have argued that this undermines the security of tenure which the  LTA 1954 was intended to provide to business tenants. 

An appeal will be heard by the Supreme Court on 17 October 2018, leapfrogging the Court of Appeal.  The case is of significant importance for business tenants and landlords alike, and the Supreme Court's view is eagerly anticipated.


If you're a landlord or tenant of business premises and would like to discuss your rights to possession, please contact Philip Sheppard in our Property Litigation team on 0117 314 5621 to discuss how we can help.