Johnson Security Ltd v Orchard Trading Estate Management Ltd: CA 26 Mar 2002

The appellant owned a freehold property on an industrial estate. The land was subject to a rentcharge under which the rent charge owner sought to recover costs of the management of the estate. The appellant said that the charges failed since they sought recovery for payment of the costs of maintenance, and of rating liability of the common parts of the estate, and so were not exclusively for the benefit of the land charged, and were not reasonable.
Held: Under the 1977 Act, estate rentcharges could still be created. It was in the interests of the several plots on the estate, that the common parts were maintained, and the rates paid. The rentcharge fell within the exemption, and was reasonable, since it sought to recover no more than the costs incurred.

Judges:

Lord Justice Peter Gibson

Citations:

Gazette 25-Apr-2002, [2002] EWCA Civ 406, [2002] 18 EG 155

Links:

Bailii

Statutes:

Rentcharges Act 1977 2(3)(c)

Jurisdiction:

England and Wales

Land, Rating

Updated: 29 June 2022; Ref: scu.170022