O'May v City of London Real Property Co Ltd
[1983] 2 AC 726 · House of Lords · 1983
The question
On a renewal, can the landlord use the new lease to change the deal — here, converting a clear lease into a full service-charge recovery from the tenant?
What was held
No, not without justification. The party proposing a change to the terms of the existing tenancy carries the burden of showing it is fair and reasonable, having regard to the terms of the current lease and all the circumstances. A price adjustment in the rent does not automatically make a changed term reasonable.
For a landlord
You do not get a modernised, more onerous lease for free. Justify every departure from the existing terms, and expect the rent concession argument alone to fail.
For a tenant
This is your strongest single authority. Start from the existing lease and make the landlord prove why anything should change.
The provisions this turns on
Apply it to your matter
Read alongside this
- B&M Retail Ltd v HSBC Bank Pension Trust (UK) Ltd[2023] EWHC 2495 (Ch)
- W (No.3) GP (Nominee A) Ltd & anor v JD Sports Fashion plcNottingham County Court, 22 October 2021 (E00DE178)
- Old Street Retail Trustee (Jersey) Ltd v GB Healthcare LtdUnreported, County Court at Central London, 18 November 2022 (G02CL960)
- Dukeminster Ltd v West End Investments (Cowell Group) LtdCounty Court, 2018 (reported in practitioner briefings)
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Case summary for general guidance only, not legal advice. Judgments turn on their own facts and later decisions may qualify them — check the primary transcript before relying on any point in correspondence or proceedings.