A Landlord's Intention To Develop And The Possibility Of An Injunction

London Kendal Street No 3 Ltd v Daejan Investments Ltd [2019] PLSCS 166

London Kendal Street No3 Limited v Daejan Investments Ltd is the first reported case in which the Supreme Court's findings in S Franses Limited v The Cavendish Hotel Ltd ("Franses") have been applied. The case specifically considered the objective element of intention and whether the possibility that a tenant might apply for an injunction preventing the works meant that there were not reasonable prospects of being able to carry out the works.

Key Issues

Under section 30 (1) (f) of that Landlord and Tenant Act 1954 ("1954 Act") a Landlord may oppose a lease renewal if, "on the termination of the current tenancy the Landlord intends to demolish or reconstruct the premises comprised in the holding or a substantial part of those premises or to carry out substantial work of construction on the holding or part thereof and that he could not reasonably do so without obtaining possession of the holding" ("Ground F").

In order to successfully challenge renewal on Ground F a Landlord must show both:

Subjectively, it has a fixed, settled and unconditional intention to carry out significant works Objectively, it has reasonable prospects of being able to carry out those works The Franses case made the subjective test more difficult to satisfy by...