Cases - Buffalo Enterprises Inc v Golden Wonder Ltd

Record details

Name
Buffalo Enterprises Inc v Golden Wonder Ltd
Date
[1991]
Citation
1 EGLR 141, ChD
Legislation
Keywords
Commercial property – landlord and tenant – rent review – market rent – lease provided for additional rent which was to increase pro rata at each review of the basic rent – whether the review of the basic rent was to be based on the rental value of the premises let on similar terms ‘except as to yearly rent’
Summary

The rent review clause in a lease of premises where the landlord had made pre-lease improvements for the tenant contained provision for an additional rent which was to increase pro rata at each review of the basic rent. The review of the basic rent was to the rental value of the premises let on similar terms 'except as to yearly rent'. This allowed the additional rent to be ignored when fixing the market rent, otherwise the effect on market rent would have resulted in the additional rent effectively disappearing after the review.