Posts Categorized: Commercial Property

School Caretaker Faces Eviction After ‘Tied Homes’ Test Case

Employees who need to live on site to carry out their duties are often provided with so-called ‘tied’ homes. In a guideline decision, the High Court considered the legal effect of such arrangements in a case concerning a former school caretaker. The man and his wife had lived in a bungalow in the grounds of… Read more »

Supreme Court Upholds Reality Principle in Property Valuation

Property valuations can be a live issue for many reasons, not just on sale. Differences of opinion on the value put on property when businesses are being broken up are common, insurers are known to contest claims if a property is wrongly valued, and a revaluation can prop up a sagging balance sheet. However, on… Read more »

Claiming for Dilapidations

  When a lease come to an end, the ‘dilapidations clause’ makes the tenant liable to restore the let premises to the same state they were in when the tenant first occupied them. It is established law that when a lease comes to an end, the landlord cannot use the dilapidations clause to make a… Read more »

Property Investor Must Pay £120,400 Estate Agency Commission

  It may come as a surprise to some property owners that estate agency fees are often payable regardless of whether a buyer is introduced by the agency concerned. A property investor found that out the hard way after the Court of Appeal found him liable to pay a £120,400 commission on the £6.8 million… Read more »

Tenants First – Or Else

When the landlord of a residential building wishes to sell it (make a ‘relevant disposal’) with the associated tenancies left intact, it has a legal duty under the Landlord and Tenant Act 1987 to offer it to the tenants first. Many landlords might be unaware of this, but the consequences of failing to comply with… Read more »

Buy to Let Borrower Triumphs in Tracker Mortgage Test Case

Brochures designed to generate sales inevitably paint products in a positive light but, in a ground-breaking victory for a ‘buy to let’ borrower, the Court of Appeal has emphasised that they can create binding commitments that may prevail over inconsistent contractual terms. The borrower had taken out a 25-year ‘tracker’ mortgage with a building society…. Read more »

Entering Into a Joint Venture? – Take Advice First

Buying run-down properties and renovating them for resale with a view to profit is a very common way of making money. However, one young couple discovered to their cost the foolishness of entering into such ventures without proper legal advice.  The woman, who had been with her boyfriend for some years, bought a property for… Read more »

Failure to Anticipate Overrun Proves Costly

It is not unusual for construction projects to overrun. The contracts for such projects often contain a series of dates specifying when valuations of work done should take place and the stage payments should be made. Normally, this is done by the contractor issuing an application for payment on the appropriate dates. When works overrun,… Read more »

Court of Appeal Rules on £30 Million Football Stadium Contract

It may seem gloomy, but one of the reasons why you need a professional contract drafter is that things do not always go quite according to plan. In one case, a deal which was intended to deliver a new £30 million stadium for a football club unravelled after it hit an unforeseen planning glitch. Bristol… Read more »