Mount Eden Land is suing Towerstone Ltd for damages for breach of its repairing obligations and other covenants following determination of a lease dated 1 September 1993.
The case concerns the lease of 146-148 Oxford Street, London W1, due to expire in September 2008. A claim issued at London’s High Court and just made publicly available says that the tenant, Castleleaf Ltd, assigned its leasehold interest in the property to Towerstone without consent and in breach of the lease. Mount Eden subsequently issued forfeiture proceedings, and won an order for vacant possession from 30 September 2002.
Mount Eden alleges that Towerstone did not comply with covenants and failed to keep the premises in proper condition. Mount Eden served a schedule of dilapidations and prepared a worked valuation. However, solicitors for Towerstone insisted that the schedule of dilapidations was largely misconceived, that there was no evidence of diminution and liability was refuted, with Towerstone declining to meet with surveyors.
Mount Eden is claiming alleged losses of £444,346.55, including the refurbishment costs to put the property in the state it should have been in, together with the costs of preparation and supervision works, lost rent, insurance premium and void rates, professional fees and interest.
Mount Eden says that it was unable to relet the property to two companies without performing the works. In order to relet the ground and basement floors, it had to provide its new tenant with a nine-month rent-free period to reflect the costs of the required works. This amounts to £262,499.99 and represents an alternative claim, along with diminution in the value of its reversionary interest, amounting to £210,406.
References: EGi Legal News 08/04/04
