The tenant promised in the lease not to apply for any planning permission without the consent of the landlord, not to be unreasonably withheld. The tenant wished to apply for planning permission for a change of use of part of the demised premises, from business to residential use, but the landlord refused consent on the ground that this would substantially increase the risk that the tenant could compulsorily acquire the freehold reversion under the Leasehold Reform Act 1967. The tenant claimed that the landlord was unreasonably withholding consent. Both the judge and the Court of Appeal agreed.
Held: The appeal was allowed (Lady Arden and Lord Wilson dissenting): ‘a down to earth factual analysis of the economic consequences to the landlord of giving or refusing the requested consent in the present case plainly suggests that a refusal is reasonable. Applying the third principle, the appellant did not need to show that a refusal was right or justifiable, but merely that it was reasonable’ It was.
Judges:
Lord Wilson, Lord Carnwath, Lord Hodge, Lord Briggs
Lady Arden
Citations:
[2019] UKSC 47, [2019] 3 WLR 981, [2020] 2 P and CR 3, [2020] L and TR 8, [2020] AC 28, [2020] HLR 7, [2020] 1 All ER 1003, [2019] WLR(D) 606
Links:
Jurisdiction:
England and Wales
Citing:
Appeaal from – Rotrust Nominees Ltd v Hautford Ltd CA 17-Apr-2018
Whether the refusal to a tenant of permission to apply for planning permission for change of use of premises was unreasonable. The covenant required the landlord not to withhold consent unreasonably. The landlord feared that this would lead to the . .
Cited – Norfolk Capital Group Ltd v Kitway Ltd CA 1977
The issue was whether the landlord could reasonably refuse consent to an assignment by a limited company (which could not enfranchise) to a private individual (who could after five years’ residence).
Held:
Megaw LJ said: ‘If one were . .
Cited – Ashworth Frazer Limited v Gloucester City Council HL 8-Nov-2001
A lease contained a covenant against assignment without the Landlord’s consent, such consent not to be unreasonably withheld. The tenant asserted, pace Killick, that the landlord could not refuse consent on the grounds that the proposed tenant might . .
Cited – International Drilling Fluids v Louisville Investments (Uxbridge) Ltd CA 20-Nov-1985
Consent to Assignment Unreasonably Withheld
The landlord had refused a proposed assignment of office premises from a tenant who had occupied the premises as its permanent offices, to a tenant who proposed to use the premises as serviced offices – that is, for short-term rent to others. The . .
Cited – Bickel v Duke of Westminster CA 1977
The freeholder had refused consent to an assignment of the head lease of a house to a lady who, if she had become tenant under the head lease for five years, would have been entitled to buy the freehold from the Estate. The existing tenant was a . .
Lists of cited by and citing cases may be incomplete.
Landlord and Tenant
Updated: 24 April 2022; Ref: scu.642830