Cadogan and Another v Morris
| Jurisdiction | England & Wales |
| Judgment Date | 04 November 1998 |
| Date | 04 November 1998 |
| Court | Court of Appeal (Civil Division) |
Court of Appeal
Before Lord Justice Stuart-Smith, Lord Justice Otton and Lord Justice Tuckey
Leasehold reform - tenant's notice to acquire new lease - notice must specify realistic premium - notice invalid
A tenant's notice under section 42 of the Leasehold Reform, Housing and Urban Development Act 1993, claiming the right to acquire a new lease, had to specify a bona fide, realistic and genuine proposal as to the premium which the tenant proposed to pay for the new lease. Failure to do so rendered the notice invalid.
The Court of Appeal so held in a reserved judgment, allowing an appeal by the landlord, Charles Gerald John, Earl Cadogan, against the order of Mr Recorder Kallipetis, QC, made on January 21, 1998 at West London County Court, upholding the validity of a notice served by the tenant, Hugo Francis Morris, under section 42 of the 1993 Act.
In June 1990 the tenant took an assignment of the residue of a flat in Chelsea, London. The contractual term was due to expire on December 22, 1994.
On September 6, 1994 the tenant served a notice, pursuant to section 42 of the 1993 Act, claiming to exercise his right to acquire a new lease. The notice, claiming a 90-year lease at a peppercorn rent valued between £100,000 and £300,000, specified that the premium which the tenant proposed to pay for the grant of a new lease was a nominal £100.
The landlord served a counter-notice and challenged the validity of the tenant's notice in the county court on the ground that it failed to specify a realistic premium, contrary to the requirements of section 42(3)(c).
Section 42 of the 1993 Act provides: "(1) A claim by a qualifying tenant of a flat to exercise the right to acquire a new lease of the flat is made by giving notice of the claim under this section … (2) … (a) to the landlord, …
"(3) The tenant's notice must … (c) specify the premium which the tenant proposes to pay in respect of the grant of a new lease …"
Mr Anthony Radevsky for the landlord; Mr Gary Cowen for the tenant.
LORD JUSTICE STUART-SMITH said that the 1993 Act gave qualifying tenants, essentially those holding a long lease at a low rent, inter alia, the right to a new lease (section 39(1)) in substitution for the old lease. If the old lease had nearly expired, as in the present case, what was being purchased was 90 years at a peppercorn rent; something which was clearly very valuable.
A claim to a new lease was made...
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9 Cornwall Crescent London Ltd v Kensington and Chelsea Royal London Borough Council
...challenge to the landlord's counter-notice is that it proposes an unrealistically high price, relying on the reasoning of this Court in Cadogan v Morris [1999] 1 EGLR 59 in a different context of the Act , namely Part 1 , Chapter 2, relating to a tenant's right to acquire a new lease. ......
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7 Strathray Gardens Ltd v Pointstar Shipping and Finance Ltd and Another
...If the tenants' initial notice deliberately specifies an unrealistic sum, the tenants' initial notice will be invalid: Cadogan v Morris [1999] 1 EGLR 59. This provides some protection for the landlord if he fails to serve an appropriate counter-notice. However, it will only be available in ......
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Warborough Investments Ltd v Central Midland Estates Ltd and Another
...provision, where the consequences are capable of being draconian. And for that purpose he compared Kudigin v Morris [1999] 1 Estates Gazette Law Reports 59 with Cornwall Crescent London Ltd v Kensington and Chelsea Royal London Borough Council [2006] 1 WRL 1186. Mr Fancourt's submissions ga......
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Table of Cases
...UKUT 90 (LC), (2011) April 11, UT(LC) 145 Cadogan v McGirk [1996] 4 All ER 643, [1996] NPC 65, [1996] 2 EGLR 75, CA 89 Cadogan v Morris [1999] 1 EGLR 59, (1998) 77 P&CR 336, (1998) 31 HLR 732, CA 104, 106, 170, 171, 176 Cadogan v Pitts and Another; Cadogan and Others v Sportelli and Another......
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Collective Enfranchisement under the Leasehold Reform (Housing and Urban Development) Act 1993
...valid, whilst the identical notice served by a tenant who knows the premium stated is unrealistic would not be valid. 6 Cadogan v Morris [1999] 1 EGLR 59. 7 9 Cornwall Crescent London Ltd v Royal Borough of Kensington and Chelsea [2005] EWCA Civ 324, [2006] 1 WLR 1186. 8 Cadogan v Morris [1......
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Individual Lease Extension under the Leasehold Reform Housing and Urban Development Act 1993
...[2002] EWCA Civ 790, [2003] HLR 102. 2 Keepers and Governors of John Lyon Grammar School v Secchi (1999) 32 HLR 820. 3 Cadogan v Morris [1999] 1 EGLR 59. 4 9 Cornwall Crescent London Ltd v Royal Borough of Kensington and Chelsea [2005] EWCA Civ 324, [2006] 1 WLR 1186. premium payable was un......