The case of General Motors UK Ltd v The Manchester Ship Canal Company Ltd concerned a licence agreement which allowed General Motors to discharge surface water into the canal for a modest annual fee of £50.
Warning To Landlords - Do Not Delay Tenant's Requests
Paul Engelbrecht, Commercial Property Solicitor in Cheltenham advises that Landlords must think carefully, and quickly, in considering a request for the assignment, or transfer of a lease.
Failure to do so could result in costly consequences. The Court of Appeal recently decided to award damages to a tenant of over £180,000 plus interest because its landlord did not act quickly enough in considering the request to an assignment and scuppered the potential sale that a tenant had lined up.
Landlords have the burden to demonstrate that it is reasonable and proper for them to withhold consent under certain conditions and trivial breaches are not sufficient for refusal.
This case is a timely reminder and highlights that landlords must act quickly and reasonably on any written requests by tenants. This decision will be welcomed by tenants and mortgagees in a position who commercially need quick demonstrative replies on their requests.
Careful legal drafting to set out clearly and concisely the requirements and conditions in leases must be considered at all times.
For further help or queries please do not hesitate to contact Paul Engelbrecht on 01242 586868 at Hughes Paddison Solicitors or by email, firstname.lastname@example.org.