In an appeal brought by Grosvenor (Mayfair) Estate and Grosvenor West End Properties (the Landlord), the Court of Appeal considered whether an empty property (“the Property”) compromised a house and premises within the meaning of section 2 of the Leasehold Reform Act 1967.
If the Property was classed as a house, the Tenant would be entitled to buy the freehold of the Property or take a new lease for an additional 50 years. If the Property was not a house, the tenant would have no such right.
The Property was a large London townhouse previously used for residential purposes until shortly after the Second World War, after which it was used partially for office purposes with residential accommodation on the upper floors. At the relevant date, the Property had been unused and unoccupied for 13 years.
The Landlord argued that the building was a disused office building with ancillary residential accommodation which could not be classed as a house and the tenant was therefore not entitled to buy the freehold or take a new lease. The Judge decided it was a house and the Court of Appeal upheld this decision and dismissed the Landlord’s appeal.
The Judge commented that during the site visit of the Property the residential character, identity and functionality of the building was striking and that the only thing which may have altered the conclusion was the presence of some old office light fittings, cabling, sockets, toilets and partitioning but that all of these items were ‘superficial’.
The Court of Appeal stated that there was no reason to interfere with the Judge’s decision as a full analysis had been undertaken and the law had been correctly applied to the facts.
This case demonstrates that in deciding whether a building constitutes a house, each case will be decided on its own merit given that buildings are “infinitely variable in character and function” and it will not be the case that it will simply be decided on the building’s last use.
If you have any questions or require further advice, please contact our Commercial Property department.
Please share the article
