Should he be minded to impose a condition (eg by requiring a guarantor for the assignee), then the good news to come from London & Argyll Developments Ltd v Mount Cook Land Ltd [2002] 50 EG 111 (CS) is that he must give his reasons in writing, and do so at the time he seeks to impose the condition, such reasons being limited to those given when the tenant’s application was received or within a reasonable time thereafter: see
Judicial decisions upon whether the landlord has, sincerely or otherwise, voiced excessive concern over the financial standing of the proposed assignee or sublessee have necessarily proceeded on a case-by-case basis. Nevertheless, valuable guidance can be found in
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Q According to the lease of our shop, the landlord cannot unreasonably withhold his consent to a proposed assignment or subletting. However, the last time we sought his licence to assign, the deal collapsed while we tried to cope with a host of absurd inquiries and demands relating to the financial standing of the assignee. Now that we have found another buyer for the shop, how can we avoid a repeat performance on the landlord’s part?
A When applying for his consent, remind him that, under the Landlord and Tenant Act 1988, he is duty-bound to notify you of his decision within a reasonable time, and that, if the need arises, it will be up to him to show that the time taken was reasonable. To start the clock running against the landlord, your application should be accompanied by all such financial information, including guarantee proposals, as he may reasonably require.
Should he be minded to impose a condition (eg by requiring a guarantor for the assignee), then the good news to come from London & Argyll Developments Ltd v Mount Cook Land Ltd [2002] 50 EG 111 (CS) is that he must give his reasons in writing, and do so at the time he seeks to impose the condition, such reasons being limited to those given when the tenant’s application was received or within a reasonable time thereafter: see No guaranteed answer Estates Gazette 8 February 2003, p143.
Judicial decisions upon whether the landlord has, sincerely or otherwise, voiced excessive concern over the financial standing of the proposed assignee or sublessee have necessarily proceeded on a case-by-case basis. Nevertheless, valuable guidance can be found in It stands to reason Estates Gazette 9 November 2002, p149, where Julia Goldberg, of Norton Rose, analyses the leading cases on the 1988 Act.
Related items:
PP 2002/171
PP 2003/19
