In Neil Hare-Brown and QCC v Tent and Alison Trent and Co, QCC had 3 commercial leases for a property in Fleet Street, London. However, QCC had “swapped” company names and this had potential adverse consequences for Trent the landlord. The possible consequences were:
1. as income had been directed by QCC to the new company, there was a risk that QCC would be unable to pay the rent.
2. the presence of the “new” company was likely to cause problems as it was a requirement of Alison Trent’s lender that the demised premises be contracted out of the Landlord and Tenant Act Part II (1954).
3. another company, QCC Interscan, had been permitted by QCC to use the premises in breach of covenant.
4. there was a security issue about electronic security fobs that had been issued to named personnel of QCC which had then been distributed to other individuals who had no right to enter the demised premises.
Upon discovering the issues Trent claimed that she was put to some considerable amount of work to put the situation right both in her capacity as landlord and solicitor. The work included the variation of leases and where necessary licenses to assign. Trent looked to QCC to pay the bills for this work and although QCC paid they did so under protest and now seek an assessment of the costs.
The question for the court was therefore could the landlords costs be assessed?
QCC argued that Trent had been appointed their solicitor upon her suggestion and that Trent had refused to acknowledge QCC’s request to use their own solicitor to draw up documents which left them with no other option than to permit her to do the work.
Trent argued that the costs that QCC was seeking to challenge related to costs due pursuant to leases and other commitments arising from applications under the leases, and breaches of the leases, by them. She further argued that the costs were due to her in her capacity as landlord and argued that she has never acted as solicitor for QCC or anyone connected with QCC.
The court held Trent could not, as she had done, require QCC to pay the costs to which she has been put as landlord arising from breaches of covenant and at the same time, deny that QCC had any entitlement to a detailed assessment of those costs under the Solicitors Act 1974.
The court acknowledged that whilst it is right to say that the invoices were not printed on the Solicitor’s headed notepaper, nonetheless, Trent had accepted in her witness statement that her firm acted for the Landlord. In these circumstances, the court was satisfied that there was a solicitor/client relationship between Alison Trent as landlord and Alison Trent & Co as solicitor and that the firm rendered invoices to Alison Trent which, in her capacity as landlord and party chargeable, she has passed on to QCC for payment as tenant and third party. It follows, in the judgment that QCC is in principle entitled to an assessment under s.71 of the 1974 Act.
We often get told on the helpline that the landlord is a solicitor and that attempts are being made to impose certain restrictions which in a landlord and tenant situation are simply inappropriate. We therefore thought some of you would enjoy the article.
Filed under: England & Wales, FLW Article, comment, commercial lease, legislation, licensing
1 August, 2011 • 13:43 0
Houseboats
In Mew and Just v Tristmire Limited the leaseholder obtained possession orders upon the expiry of 2 notices to quit.
Mew and Just lived in houseboats which were located in a rectangular shaped plot around the edge of a harbour. The houseboats are converted landing craft which were constructed locally during the Second World War. They were subsequently modified and made water tight and habitable. They were once capable of floating but now rest on wooden platforms which are supported by wooden piles driven and cemented into the bed of the harbour. Services such as water, gas and electricity were connected but they could also be easily disconnected.
An expert giving evidence at court confirmed that generally houseboats can be removed by crane and then floated to a new location however in this case given the age and condition, if the houseboats were moved they would be probably be damaged or destroyed.
When Mew and Just purchased the houseboats they did not purchase the plot that the houseboats were situated in, they were owned by Tristmire who served a number of notices to quit and section 13 notices to raise the rent. However Mew and Just claimed that they were not licensees of the plots but assured tenants under the Housing Act 1988 and as such the notices were invalid.
The argument put to the court by Mew and Just was that the houseboats have a degree of permanence so as to make them part of the plot and cannot now be removed without their disintegration. That even if they were in good repair they were just like houses on stilts which are not intended to be removed.
But the court found for Tristmire and held that that the houseboats remained essentially boats, albeit adapted for residential use. They were constructed elsewhere and placed in the plot and did not as such form part of the realty and therefore remain as chattels. The court compared the houseboats to caravans, which as designed, are moveable.
Therefore because the houseboats did not become affixed to the land Mew and Just could not become assured tenants and were indeed licensees and the notices were therefore valid.
We often get asked whether ASTs can be granted for houseboats and it is a grey area as confirmed above. It is the degree of permanency that is relevant and this detail needs to be obtained before any decision is made.
Filed under: England & Wales, FLW Article, comment, Housing Act 1988, licensing, possession