Martineau Galleries No1 Ltd & Anor v Birmingham City Council

Martineau Galleries No1 Ltd & Anor v Birmingham City Council

Valuation under clause 7(h) does not require assumption of vacant possession for sublet parts; actual sub-tenancies and their terms may be considered, and valuer is entitled to have regard to actual rents receivable and management costs, placing appropriate weight as deemed relevant.

Parties
Claimant: Martineau Galleries No.1 Limited; Claimant: Martineau Galleries No.2 Limited; Defendant: Birmingham City Council
Jurisdiction
England and Wales
Judgment Date
20 August 2013
Procedural Posture
Civil / Judgment
Outcome
Declarations to be formulated by counsel to give effect to the court's rulings on construction of clauses 7(h) and 7(j).
Legal Topics
Rent Review, Lease Construction, Valuation of Rental Value
Property Law Landlord and Tenant Rent Review Lease Construction Valuation of Rental Value

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Parties

Martineau Galleries No.1 Limited

Claimant

Martineau Galleries No.2 Limited

Claimant

Birmingham City Council

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Construction of rent review provisions in a development lease
  2. 2 Whether valuation under clause 7(h) requires assumption of vacant possession for sublet parts
  3. 3 How vacant premises are to be valued under clause 7(j)

Ratio Decidendi

Valuation under clause 7(h) does not require assumption of vacant possession for sublet parts; actual sub-tenancies and their terms may be considered, and valuer is entitled to have regard to actual rents receivable and management costs, placing appropriate weight as deemed relevant.

Court Disposition

Declarations to be formulated by counsel to give effect to the court's rulings on construction of clauses 7(h) and 7(j).

Orders

  • Valuer is not required to assume vacant possession for sublet parts under clause 7(h); actual sub-tenancies and their terms may be considered.
  • Valuer is entitled to have regard to voids and costs of management for vacant premises under clause 7(j), with weight determined by valuer.