The court considered a claim that the landlords consent to an assignment of the lease had been wrongly withheld. Following a period of discussion and negotiation about the proposed assignment, on August 11 2003 the landlord’s solicitors informed the tenant’s solicitors that, in addition to the concerns already expressed, the landlord was seriously concerned about the covenant strength of the proposed undertenant, and on 20 August they formally confirmed the refusal of consent both on that ground and on grounds previously canvassed.
Carnwath LJ said: ‘On the first issue, I do not share the judge’s view of the significance of the delay between August 11, and August 20. I would make four points. First, a clear distinction needs to be drawn between informal exchanges, both internally and between the parties, and the formal process of application and decision contemplated by the Act. On the one hand, it is in all parties’ interests that there should be such free exchanges with a view to reaching an agreed solution without prejudicing their respective positions under the Act. On the other hand, the serious legal consequences resulting from the statutory scheme require that the process of application and decision should be subject to a reasonable degree of formality.’
Judges:
Carnwath LJ
Citations:
[2005] EWCA Civ 312, [2005] LandTR 25
Links:
Jurisdiction:
England and Wales
Citing:
Appeal from – NCR Ltd v Riverland Portfolio No.1 Ltd ChD 16-Jul-2004
The tenant complained that the landlord had unreasonably delayed approval of a proposed underletting.
Held: The court had to bear in mind that the consent was to an underlease, and that therefore there was no privity between the landlord and . .
Cited by:
Cited – No1 West India Quay (Residential) Ltd v East Tower Apartments Ltd ChD 6-Oct-2016
Consent to assignment – delay
Tenants under long residential leases challenged the refusal of the landlord to consent to particular assignments of apartments. The leases contained provisions saying that such consent was not to be unreasonably withheld. The landlord now appealed . .
Lists of cited by and citing cases may be incomplete.
Landlord and Tenant
Updated: 29 June 2022; Ref: scu.223750