Court holds determination of a turnover rent is inconsistent with the Landlord and Tenant Act 1954 - Kuits Solicitors Manchester
  • Insights
  • Court holds determination of a turnover rent is inconsistent with the Landlord and Tenant Act 1954

Court holds determination of a turnover rent is inconsistent with the Landlord and Tenant Act 1954

Court holds determination of a turnover rent is inconsistent with the Landlord and Tenant Act 1954

3rd November 2021 - Published by Kuits Property Litigation team

Court holds determination of a turnover rent is inconsistent with the Landlord and Tenant Act 1954

W (No.3) GP (Nominee A) Limited v JD Sports Fashion plc

A case involving retail premises in Derby has held that determination of a turnover rent is inconsistent with the statutory disregards in section 34 of the Landlord and Tenant Act 1954.

Here, the existing lease contained a rent based on a percentage of the tenant’s turnover. The rent to be paid in the new lease was in issue. The landlord wanted determination based on a percentage of the tenant’s turnover. The tenant sought a determination of a fixed rent.

The Court found it would only be appropriate to determine a turnover rent in exceptional circumstances where it was common in the relevant industry.

Get in touch with our Property Litigation team

As the retail market adjusts following the pandemic, time will tell whether subsequent cases follow precedent and what might considered to be “common” in the retail market and/or what the definition of relevant industry might be. If you have any queries regarding your opposed or non-opposed lease renewal please contact Property Litigation Senior Associate Rebecca Jones on 0161 838 7889 or email rebeccajones@kuits.com

 

Subscribe to our mailing list