Cases - Ponsford v HMS Aerosols Ltd
Record details
- Name
- Ponsford v HMS Aerosols Ltd
- Date
- [1979]; [1978]
- Citation
- AC 63; 2 AII ER 837, HL
- Legislation
- Keywords
- Commercial properties – rent review- rent review to be a 'reasonable rent for the demised premises' – voluntary improvements – whether the 'reasonable rent' was the rent at which the premises might reasonably be expected to be let
- Summary
-
The House of Lords held that the tenant was obliged to pay rent for 'the demised premises', which would include improvements carried out at the tenant's expense forming part of the demised premises, unless there was express provision to the contrary.
The rent review was to be to 'a reasonable rent for the demised premises' but there were no detailed directions as to matters to be assumed or disregarded. The tenant had voluntarily carried out extensive improvements to the premises and argued that the effect of his improvements should be disregarded, but the landlord successfully argued that the 'reasonable rent' was the rent at which the premises might reasonably be expected to be let and that the premises should be valued as they actually stood at the review date since the lease did not stipulate any other basis.