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Burford UK Properties Ltd and Others v Forte Hotels (UK) Ltd and Others: ChD 19 Nov 2001

Properties were let on 99 year leases with provision for upwards only rent reviews. The new rents were to be linked to ‘net bedroom rent’ (NBR) figures. The lease imposed an obligation on the tenant to attempt to secure the best rents for the rooms, and not to take the bedrooms out of service save for redecoration. A claim was brought, and as a preliminary issue the question was whether the provisions amounted to a covenant as to the use of the property.
Held: The provisions were merely an extension or qualification of the definition of the terms used to calculate the rent. The use of the word ‘shall’ did not necessarily impose an obligation, and no action for damages was possible.

Judges:

Simon Berry QC

Citations:

Gazette 29-Nov-2001

Jurisdiction:

England and Wales

Landlord and Tenant

Updated: 28 April 2022; Ref: scu.166936

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