Swainland Builders Ltd v Freehold Properties Ltd [2002] EWCA Civ 560 (12 April 2002)

Swainland Builders Ltd v Freehold Properties Ltd [2002] EWCA Civ 560 (12 April 2002)

The parties had a clear, common, continuing intention that the claimant would retain leasehold interests in Flats 11 and 18, and the transfer failed to reflect this due to oversight by solicitors. Rectification is appropriate to give effect to the common intention, and statutory requirements under the Landlord and Tenant Act 1987 are not breached by the rectification ordered.

Citation
[2002] EWCA Civ 560
Parties
Claimant/respondent: Swainland Builders Limited; Defendant/appellant: Freehold Properties Limited
Jurisdiction
England and Wales
Judgment Date
12 April 2002
Procedural Posture
Appeal From Chancery Division (rectification of Transfer) / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Rectification of Instruments, Common Mistake, Landlord and Tenant Act 1987, Long Leasehold Interests, Equitable Remedies
Property Law Equity Rectification of Instruments Common Mistake Landlord and Tenant Act 1987 Long Leasehold Interests Equitable Remedies

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Parties

Swainland Builders Limited

Claimant/respondent

Freehold Properties Limited

Defendant/appellant

Procedural Posture

Appeal From Chancery Division (rectification of Transfer) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether rectification of the transfer is appropriate due to a common mistake regarding the retention of leasehold interests in Flats 11 and 18
  2. 2 Whether rectification would contravene the Landlord and Tenant Act 1987

Ratio Decidendi

The parties had a clear, common, continuing intention that the claimant would retain leasehold interests in Flats 11 and 18, and the transfer failed to reflect this due to oversight by solicitors. Rectification is appropriate to give effect to the common intention, and statutory requirements under the Landlord and Tenant Act 1987 are not breached by the rectification ordered.

Court Disposition

Appeal dismissed

Orders

  • Transfer to be rectified to require the defendant to grant the claimant leases of Flats 11 and 18 for 99 years from 1 January 1989 at £125 per annum, on same terms as other leases.
  • Claimant to pay all costs incurred in preparation and grant of leases, including stamp duty and solicitor's costs, to defendant on indemnity basis.