York House (Chelsea) Ltd v Thompson & Anor

York House (Chelsea) Ltd v Thompson & Anor

The leases granted by the defendants were exempt disposals under s.4(2)(e) (gift to a member of the landlord’s family) or s.4(2)(h) (intra-family transfer) of the Landlord and Tenant Act 1987. The grant of a lease can constitute a gift even where mutual covenants exist, provided no value is received by the landlord. The statutory purpose and language support a broad interpretation of these exemptions. Accordingly, the statutory right of first refusal was not triggered and the claim fails.

Parties
Claimant: York House (Chelsea) Limited; First Defendant: Edward Allen Victor Thompson; Second Defendant: Domitila Thompson
Jurisdiction
England and Wales
Judgment Date
15 August 2019
Procedural Posture
Civil / Trial Judgment
Outcome
Claim dismissed
Legal Topics
Right of First Refusal, Relevant Disposal, Leasehold Reform, Common Parts, Appurtenances, Family Exemptions, Statutory Interpretation
Property Law Landlord and Tenant Law Right of First Refusal Relevant Disposal Leasehold Reform Common Parts Appurtenances Family Exemptions +1 more

Case Brief

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Parties

York House (Chelsea) Limited

Claimant

Edward Allen Victor Thompson

First Defendant

Domitila Thompson

Second Defendant

Procedural Posture

Civil / Trial Judgment

Legal Issues

  1. 1 Whether the grant of leases by the defendants constituted relevant disposals under the Landlord and Tenant Act 1987 requiring notice to qualifying tenants
  2. 2 Whether the leases fell within the family gift or intra-family transfer exemptions under s.4(2)(e) or (h) of the 1987 Act
  3. 3 Whether the demised premises were common parts or appurtenances to which the Act applies

Ratio Decidendi

The leases granted by the defendants were exempt disposals under s.4(2)(e) (gift to a member of the landlord’s family) or s.4(2)(h) (intra-family transfer) of the Landlord and Tenant Act 1987. The grant of a lease can constitute a gift even where mutual covenants exist, provided no value is received by the landlord. The statutory purpose and language support a broad interpretation of these exemptions. Accordingly, the statutory right of first refusal was not triggered and the claim fails.

Court Disposition

Claim dismissed