Search

How can we help?

Icon

Battle of the rights – Landlord’s right to build vs the tenant’s right to quiet enjoyment

It is commonplace for a landlord who fully owns a commercial property to part rent it out and then to reserve a right in the lease enabling them to develop the remainder of the property. However, would the landlord be completely free to do so?

This question was answered in Timothy Taylor Ltd v Mayfair House Corporation [2016] EWHC 1075 which reminded landlords to be cautious not to categorically assume an unchallengeable right to develop the remainder of a building without taking into account the concerns of existing tenants.

The tenant operated a high class art gallery from the ground floor and basement of a five storey building in Mayfair, London. The lease contained clauses entitling the landlord to carry out development works to other parts of the building, and in particular to erect scaffolding. Against this, the lease also contained a clause permitting the tenant to peaceably and quietly enjoy the premises.

When the landlord began works to develop the upper floors of the building in 2013, the works produced high levels of noise and the scaffolding enveloped the whole building. This rendered the gallery virtually invisible, giving the impression that it was closed and formed part of the building site. This soon led to a claim from the tenant against the landlord.

There was an acute conflict between the landlord’s and the tenant’s respective rights under the lease. The Court found that despite the landlord’s express right to redevelop adjoining premises under the terms of the lease, with some disruption, the manner in which the landlord had been undertaking its redevelopment works exceeded this right and was in breach of the covenant for quiet enjoyment.

In particular, the Court found that the design of the landlord’s scaffolding and its failure to consult or provide sufficient information to enable to gallery to plan around the noise were unreasonable.

The judge took particular note of the quality of the premises and their location and the high rent payable and the fact that the landlord was undertaking the works for its own benefit rather than simply seeking to comply with any repairing obligation or other duty to the tenant.

In particular, the Court found that the design of the landlord’s scaffolding and its failure to consult or provide sufficient information to enable to gallery to plan around the noise were unreasonable.

This decision highlights some practical points and factors that a landlord should consider when taking reasonable steps to minimise disturbance to a tenant. A landlord should:

  • Give the tenant as much information as possible about any proposed works before the lease is granted; Meet with the tenant at an early stage to explain the works and discuss how disturbances can be minimised including noise limits and quiet periods;
  • Ensure that any specific requirements agreed between the Landlord and tenant are passed on to, and implemented by, the contractor and project managers – including regular meetings with the tenant;
  • Design the scaffolding and make delivery and unloading arrangements that do not obstruct any access points of the tenant’s premises and try to ensure that signage is kept visible; and
  • Ensure that the tenant is kept updated as to the length of the works and any conditions in the lease relating to the right to carry out works are complied with.

For further information on landlord/tenant rights, please contact our Real Estate legal team.

About this article

Disclaimer

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

About this article

Read, listen and watch our latest insights

art
  • 01 June 2023
  • Employment

Facts employees should know about their personal data

We previously published an article on facts an employer should know about holding personal data, so it is only fair that we also write about the other side of the coin – facts employees should know as individuals whose personal data is held by their employer.

art
  • 01 June 2023
  • Immigration

What is the Immigration Skills Charge (ISC) and how much do you have to pay?

The Immigration Skills Charge (ISC) is a levy on companies who sponsor migrant workers. This levy was imposed on 6 April 2017. The Government states that the charge has been levied to contribute towards addressing the skills gap in the local economy.

art
  • 26 May 2023
  • Employment

Avoiding discrimination in flexible working requests

The right to request flexible working is currently available to employees with at least 26 weeks’ service and is set to be extended further under new Government reforms.

art
  • 25 May 2023
  • Corporate and M&A

Management Buyout – Top 5 things to consider

A management buyout is a financial transaction in which a member of the management team purchases the company from its registered owner. MBO’s usually occur in private companies in an effort to enhance profitability and simplify strategies.

art
  • 25 May 2023
  • Employment

Carer’s Leave Bill set to become law

On 19 May 2023, the Carer’s Leave Bill had its third reading in the House of Lords, and upon receiving Royal Assent, will become law. There is not yet a date for the implementation of this bill, however it is likely that this will happen relatively quickly upon receiving Royal Assent, so is definitely one to keep an eye on.

art
  • 18 May 2023
  • Immigration

Navigating SOC Codes

When it comes to UK immigration, understanding the intricacies of the system is vital. One significant aspect of the process revolves around Standard Occupational Classification (SOC) codes. SOC codes play a crucial role in determining the eligibility for an individual to apply for a work visa, assessing skill levels, and matching individuals to appropriate job roles.