York House (Chelsea) Ltd v Thompson & Anor [2019] EWHC 2203 (Ch) (15 August 2019)

York House (Chelsea) Ltd v Thompson & Anor [2019] EWHC 2203 (Ch) (15 August 2019)

The grant of the leases by the defendants constituted gifts to family members within the meaning of s.4(2)(e) of the Landlord and Tenant Act 1987 and were therefore exempt from the right of first refusal provisions. The presence of tenant covenants in the leases did not prevent them from being gifts, as they conferred no monetary value to the landlord. The statutory language and purpose support a broad interpretation of 'gift' and 'family' for these exemptions. Accordingly, the claim fails.

Citation
[2019] EWHC 2203 (Ch)
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
Claim Under S.19 Landlord and Tenant Act 1987 / High Court Judgment
Outcome
Claim dismissed
Legal Topics
Right of First Refusal, Relevant Disposal, Exempt Disposals, Leasehold Reform, Interpretation of 'gift' and 'family' Under 1987 Act
Property Law Landlord and Tenant Law Right of First Refusal Relevant Disposal Exempt Disposals Leasehold Reform Interpretation of 'gift' and 'family' Under 1987 Act

Case Brief

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Parties

York House (Chelsea) Limited

Claimant

Edward Allen Victor Thompson

First Defendant

Domitila Thompson

Second Defendant

Procedural Posture

Claim Under S.19 Landlord and Tenant Act 1987 / High Court Judgment

Legal Issues

  1. 1 Whether the grant of leases by the defendants constituted 'relevant disposals' under s.4 of the Landlord and Tenant Act 1987
  2. 2 Whether the leases were exempt as gifts to family members or intra-family transfers under s.4(2)(e) or (h)
  3. 3 Whether the leases affected premises to which the 1987 Act applies

Ratio Decidendi

The grant of the leases by the defendants constituted gifts to family members within the meaning of s.4(2)(e) of the Landlord and Tenant Act 1987 and were therefore exempt from the right of first refusal provisions. The presence of tenant covenants in the leases did not prevent them from being gifts, as they conferred no monetary value to the landlord. The statutory language and purpose support a broad interpretation of 'gift' and 'family' for these exemptions. Accordingly, the claim fails.

Court Disposition

Claim dismissed

Orders

  • No order requiring transfer of the leases to the claimant