Cases - Durley House Ltd v Lord Cadogan

Record details

Name

Durley House Ltd v Lord Cadogan

Date

(2000)

Citation

1 EGLR 60

Legislation

• Landlord and Tenant Act 1954
• Law of Property Act 1969

Keywords

Commercial property – landlord and tenant – rent review – improvements – rent review clause requiring the disregarding of “any improvement carried out by a person who at the time it was carried out was the tenant” – whether the works carried out for improvements had been “carried out” by the tenant – Landlord and Tenant At 1954, s. 34(2)

Summary

The rent review clause directed the disregarding of 'those matters set out in paragraphs (a), (b) and (c) of section 34 of the Landlord and Tenant Act 1954 as amended by the Law of Property Act 1969. In that Act, section 34(2) requires the disregard of 'any improvement carried out by a person who at the time it was carried out was the tenant ...'. The premises had been substantially refurbished by a company which was managing the property for the tenant in return for a high percentage of the rental income from sublettings. The landlord argued that the improvements had not been carried out by the person who was the tenant and should not be disregarded at rent review, but the tenant successfully argued that it had procured the execution of the works and that they were to be disregarded as if the tenant itself had carried them out.