The tenant had served a notice to purchase the freehold of the premises at pounds 100.00, a formal nominal figure. The landlord claimed that the notice was invalid.
Held: The process was one of compulsory purchase. ‘The tenant is required to specify the premium that he proposes to pay. He did not do so; he deliberately specified a figure which he did not propose to pay. I do not think the tenant is required to offer his final figure which he may be prepared to go to, but he should in my view offer a realistic figure. ‘ and ‘This seems to me to be an application of the well known elephant test. It is difficult to describe, but you know it when you see it. I think we can trust to the good sense of landlords not to make frivolous applications and County Court judges to take a robust line and not get enmeshed in hearing detailed evidence.’ The tenant’s notice was invalid.
Judges:
Lord Justice Stuart-Smith, Lord Justice Otton, Lord Justice Tuckey
Citations:
[1998] EWCA Civ 1671, [1999] 1 EGLR 59
Links:
Statutes:
Leasehold Reform, Housing and Urban Development Act 1993 42, Leasehold Reform (Collective Enfranchisement and Lease Renewal) Regulations 1993 (1993 SI No 2407) 2(1)
Jurisdiction:
England and Wales
Citing:
Cited – Cresswell v Duke of Westminster CA 1985
‘Where we draw the line I do not know, I doubt whether it is in anybody’s interest that I should attempt to draw that line. Many cases will answer the question on their own facts.’ . .
Cited by:
Cited – 9 Cornwall Crescent London Ltd v Kensington and Chelsea CA 22-Mar-2005
The tenants offered to purchase the landlord’s freehold for andpound;210. The landlord made a counter offer to sell the freehold at andpound;130,000. The tenants argued that just as their offer had to be realistic, so the landlord’s had to be . .
Cited – Cadogan and others v 26 Cadogan Square Ltd, Howard de Walden Estates Limited v Aggio and others HL 25-Jun-2008
In each case all or part of a building was let by a head-lease and then as self-contained units under sub-leases. The head lessees had served notices under the 1993 Act requiring new leases. The freeholder denied that they were qualifying tenants, . .
Lists of cited by and citing cases may be incomplete.
Landlord and Tenant
Updated: 25 November 2022; Ref: scu.145150