Renfrewshire Council against HR 150 LTD and others (Court of Session) [2024] CSOH 75 (02 August 2024)

Renfrewshire Council against HR 150 LTD and others (Court of Session) [2024] CSOH 75 (02 August 2024)

The obligation to repay the Purchase Price under the break clause is not inter naturalia of the lease, is not customary or usual, and does not transmit to singular successors; registration under the 1857 Act does not make such personal obligations real or enforceable against successors.

Citation
[2024] CSOH 75
Parties
Pursuer: Renfrewshire Council; First Defender: HR 150 Limited; Second Defender: Aston Darby Harbour Property Limited; Third Defender: TDEH Limited
Jurisdiction
Scotland
Judgment Date
02 August 2024
Procedural Posture
Commercial Property Dispute / Judgment After Proof Before Answer
Outcome
Declarator granted in favour of pursuer
Legal Topics
Transmissibility of Lease Obligations, Registration of Leases, Break Clauses, Repayment of Premium, Inter Naturalia
Property Law Contract Law Landlord and Tenant Transmissibility of Lease Obligations Registration of Leases Break Clauses Repayment of Premium Inter Naturalia

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Parties

Renfrewshire Council

Pursuer

HR 150 Limited

First Defender

Aston Darby Harbour Property Limited

Second Defender

TDEH Limited

Third Defender

Procedural Posture

Commercial Property Dispute / Judgment After Proof Before Answer

Legal Issues

  1. 1 Whether the obligation to repay the Purchase Price under the lease is transmissible against singular successors
  2. 2 Effect of Registration of Leases (Scotland) Act 1857 on transmissibility
  3. 3 Whether the break clause and payment obligation are inter naturalia of the lease

Ratio Decidendi

The obligation to repay the Purchase Price under the break clause is not inter naturalia of the lease, is not customary or usual, and does not transmit to singular successors; registration under the 1857 Act does not make such personal obligations real or enforceable against successors.

Court Disposition

Declarator granted in favour of pursuer

Orders

  • It is declared that the obligation to repay the Purchase Price under paragraph 1.1 of Part 3 of the Schedule to the lease is a personal obligation and does not bind successors in title to the second defender.