Snarecroft Ltd v Quantum Securities Ltd

Snarecroft Ltd v Quantum Securities Ltd

In the context of this lease, 'residential purposes' does not include use as a hotel. The lease contemplates use as flats or residences with a degree of permanence, not transient hotel accommodation. Use as a hotel would be a business purpose and would infringe clause 11 of the fourth schedule.

Parties
Claimant: Snarecroft Ltd; Defendant: Quantum Securities Ltd
Jurisdiction
England and Wales
Judgment Date
15 February 2018
Procedural Posture
Civil (landlord and Tenant) / Summary Judgment Application
Outcome
Summary judgment granted for the claimant on the construction of clause 11; use as a hotel is prohibited by the lease.
Legal Topics
Construction of Lease Covenants, Use of Premises, Summary Judgment, Restrictive Covenants
Landlord and Tenant Property Law Contract Law Construction of Lease Covenants Use of Premises Summary Judgment Restrictive Covenants

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Parties

Snarecroft Ltd

Claimant

Quantum Securities Ltd

Defendant

Procedural Posture

Civil (landlord and Tenant) / Summary Judgment Application

Legal Issues

  1. 1 Whether clause 11 of the fourth schedule to the lease prohibits use of the premises as a hotel
  2. 2 Proper construction of 'residential purposes' in the context of the lease

Ratio Decidendi

In the context of this lease, 'residential purposes' does not include use as a hotel. The lease contemplates use as flats or residences with a degree of permanence, not transient hotel accommodation. Use as a hotel would be a business purpose and would infringe clause 11 of the fourth schedule.

Court Disposition

Summary judgment granted for the claimant on the construction of clause 11; use as a hotel is prohibited by the lease.

Orders

  • Declaration that clause 11 of the fourth schedule prohibits use of the premises as a hotel
  • Costs of the application to the claimant