Cases - Daejan Properties Ltd v Holmes
Record details
- Name
- Daejan Properties Ltd v Holmes
- Date
- [1996]
- Citation
- EGCS 185
- Legislation
- Keywords
- Commercial property – landlord and tenant – rent review – lease provided for improvements carried out pursuant to the landlord’s obligation to be taken into account for rent reviews – whether the works carried out by the tenant were obligatory requirements and were therefore to be taken into consideration when considering the rent review
- Summary
-
The rent review clause in the lease of a restaurant contained a direction to disregard improvements carried out to the premises by the tenant except in pursuance of any obligation to the landlord 'whether or not arising under this lease'. The landlord had granted the tenant a licence to extend the restaurant and the licence included a positive covenant by the tenant to carry out the specified works and a statement that the works 'shall be deemed to be carried out in pursuance of an obligation to the lessor'. This had the effect of deeming those works to be obligatory improvements for rent review purposes.