Claimant leaseholder applying to landlord for change of use — Landlord refusing — Whether landlord’s consent unreasonably withheld — Claim allowed
The defendant landlord owned a number of properties in an area of mixed use that included residential units, offices, bars and restaurants. The claimant was a tenant of one of the properties, which had previously been used as a students’ union building. Under the lease, the landlord’s consent, which was not to be unreasonably withheld, was required before any application for planning permission or change of use could proceed.
The claimant sought the landlord’s consent to apply for planning permission and for change of use of the building to D1 use, which allowed for a wide range of uses, including those for educational purposes. The landlord refused permission on the grounds that: (i) an influx of students into the area would compromise its other business interests; and (ii) the premises were in an established office location and were best suited to development as offices, office rents being higher than those paid for educational premises. The claimant applied for a declaration that the landlord’s consent was being unreasonably withheld.
Held: The claim was allowed.
The landlord’s contention that educational use would result in an influx of disruptive students had not been property considered or argued. D1 use provided substantial scope for educational use, and ranged from use as a primary school to use as a research facility for postgraduate students, or use as a museum or a gallery. The landlord had made no attempt either to ascertain the type of use intended or to negotiate with the tenant. Its blanket refusal to consider the application in any detail was unreasonable, and its argument that any educational use would adversely affect the marketing of its other properties was unfounded.
Romie Tager QC and Mark Warwick (instructed by Ingram Winter Green) appeared for the claimant; Christopher Pymont QC and Nicholas Peacock (instructed by Hamlins) appeared for the defendant.
Vivienne Lane, barrister
