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Case law watch · Part II authorities · 10 years

The decisions that are actually deciding renewals right now.

A decade of recent authority — 1959 to 2026 — sitting alongside the cornerstones that still govern every renewal: O'May on the terms of the new lease,Mannai on notices, Betty's Cafés on intention. Ranked by weight, from binding appellate decisions down to the County Court rulings shaping day-to-day practice. Each case is tied to the provisions it bears on, with the practical read for both sides.

Tier 1 — Landmark

Binding appellate decisions that reset how the grounds of opposition are argued. Start here.

MVL Properties (2017) Ltd v The Leadmill Ltd

[2025] EWHC 349 (Ch) · High Court (Chancery Division, Leeds) — Norris J

Landmark
s.30(1)(g)

The questionCould the landlord (part of the Electric Group) defeat the renewal claim of Sheffield's Leadmill venue on the basis that it intended to run a live music business from the premises itself?

HeldYes. The landlord established a firm and settled intention to occupy for its own business, with a reasonable prospect of implementing it. Goodwill built up by a much-loved tenant does not answer ground (g), and the tenant's arguments that the plan was a device failed on the evidence.

For the tenant

Reputation, trading history and local support carry no statutory weight against ground (g). Attack the plan's credibility early and forensically, and price in compensation under s.37.

For the landlord

Ground (g) remains a real route to possession where you can produce operational, financial and management evidence of a genuine plan — board decisions, funding, staffing, programming.

The tenant's onward challenge failed in May 2025 (widely reported); we have not been able to verify a separate Court of Appeal neutral citation, so treat the appellate stage as a refusal of permission rather than a reported judgment.

Landmark
s.30(1)(f)

The questionIs a landlord's intention to carry out works genuine where the scheme exists only to remove the tenant?

HeldNo. The intention must be unconditional — the landlord must intend to do the works whether or not the tenant leaves. A contrived scheme the landlord would abandon if the tenant walked away fails ground (f).

For the tenant

Ask the single most valuable question in a ground (f) case: would you still build this if I gave up possession tomorrow?

For the landlord

Be able to show the scheme has an independent commercial purpose. Works costed purely to clear the statutory hurdle will not survive cross-examination.

Tier 2 — Foundational cornerstones

Older House of Lords and Court of Appeal authority that still governs every renewal — O'May on the terms of the new lease, Mannai on notices, Betty's Cafés on intention. Cited daily.

Cornerstone
s.24

The questionWhere a tenant holds over after a contracted-out lease expires while terms are negotiated, is that a periodic tenancy or a tenancy at will?

HeldA tenancy at will, on these facts. Where both parties expect to sign a new lease and negotiations are live, the court will not readily infer an implied periodic tenancy from continued occupation and payment of rent.

For the tenant

Occupation while you negotiate is precarious and can be ended at any time. Get the new lease signed or secure a documented interim arrangement.

For the landlord

Holding over during negotiations does not usually create protection — but do not let it drift, and record that occupation is at will.

Cornerstone
s.30(1)(g)

The questionCan a landlord rely on ground (g) where the business it intends to run is essentially the same business the tenant is running from the premises?

HeldYes. Ground (g) asks whether the landlord intends to occupy for its own business. It is no answer that the landlord will simply take over the same trade, nor that the tenant's business will be destroyed.

For the tenant

The commercial unfairness of losing your business to your landlord is not a statutory defence. Focus on intention, capability and s.37 compensation.

For the landlord

Ground (g) is available even where you intend to step into the tenant's trade, provided the intention is genuine and you meet the s.30(2) five-year condition.

Patel v Keles

[2009] EWCA Civ 1187 · Court of Appeal

Cornerstone
s.30(1)(g)

The questionIs an intention to occupy genuine where the landlord also wants to sell the property?

HeldNo, not on these facts. An intention to occupy must be more than a conditional or temporary step towards a sale; a landlord who would sell if the right offer came along does not hold a firm and settled intention to occupy.

For the tenant

Look for sale particulars, agents' instructions and valuations — evidence of a sale plan is often the quickest way to break ground (g).

For the landlord

If you are marketing the property, ground (g) is in danger. Decide whether you are an occupier or a seller before you oppose.

Cornerstone
s.25s.26

The questionDoes a notice fail because of a mistake in it, or is it read as a reasonable recipient would understand it?

HeldNotices are construed objectively: what would a reasonable recipient, with knowledge of the context, understand the notice to mean? An obvious slip that misleads nobody does not destroy the notice — though a statutory notice must still do what the statute requires.

For the tenant

Do not stake your position on a typo. Look instead for a defect that goes to a statutory requirement — wrong dates, wrong parties, missing prescribed content.

For the landlord

Get the notice right, but a clerical error that cannot mislead is usually survivable.

O'May v City of London Real Property Co Ltd

[1983] 2 AC 726 · House of Lords

Cornerstone
s.35s.34

The questionOn 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?

HeldNo, 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 the tenant

This is your strongest single authority. Start from the existing lease and make the landlord prove why anything should change.

For the 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.

Meah v Sector Properties Ltd

[1974] 1 WLR 547 · Court of Appeal

Cornerstone
s.26s.25

The questionCan a tenant serve a section 26 request after the landlord has already served a valid section 25 notice?

HeldNo. The two routes are mutually exclusive; once a valid s.25 notice is given, a s.26 request cannot be made.

For the tenant

If timing matters to you — rent levels, funding, a fit-out programme — move first rather than waiting to be served.

For the landlord

Serving first removes the tenant's ability to set the timetable and the interim-rent date through s.26.

Cornerstone
s.29As.26

The questionAre the statutory time limits for applying to court absolute, or can a landlord lose the right to rely on them?

HeldThe limits exist for the landlord's benefit, so a landlord can waive them by election — for example by treating a premature or late claim as properly constituted and litigating on the merits.

For the tenant

Missing the window is usually fatal, but examine the landlord's conduct: an unqualified engagement with the claim may amount to election.

For the landlord

Take a limitation point immediately and unequivocally. Negotiating or pleading to the merits can cost you the point.

Cornerstone
s.30(1)(f)s.30(1)(g)

The questionAt what date must the landlord prove its intention to redevelop or occupy — when the notice was served, or at trial?

HeldAt the hearing. The landlord must hold the requisite intention at the date of the hearing, so intention formed after the s.25 notice still counts.

For the tenant

A weak plan at notice stage proves nothing. Keep testing the evidence right up to trial, because the landlord can improve its position.

For the landlord

You can firm up your scheme after serving the notice — what matters is where you stand at trial.

Gold v Brighton Corporation

[1956] 1 WLR 1291 · Court of Appeal

Cornerstone
s.35

The questionCan the new lease contain a user restriction that would cut out a substantial part of the tenant's existing trade?

HeldNot without good reason. The court should not impose terms that deprive the tenant of a substantial part of the business actually carried on.

For the tenant

Identify precisely what trade you carry on and what a narrowed user clause would cost you — that is the O'May argument in practice.

For the landlord

If you want a tighter user clause on renewal, be ready to justify it and to compensate through the rent.

Bagettes Ltd v GP Estates Co Ltd

[1956] Ch 290 · Court of Appeal

Cornerstone
s.23(1)

The questionIs a tenancy protected where the business use is only incidental to a wider, largely non-business letting?

HeldNo. Part II requires occupation for the purposes of a business; a merely incidental business element is not enough.

For the tenant

Make the business purpose real and documented — trading records, rates, signage, staff — not incidental.

For the landlord

Analyse the real purpose of the occupation, particularly in mixed residential and commercial buildings.

Tier 3 — Significant

High Court and Court of Appeal authority on notices, contracting out and the terms of the new lease.

Royal Borough of Kensington & Chelsea v Mellcraft Ltd

[2024] EWHC 539 (Ch) · High Court (Chancery, appeal) — Edwin Johnson J

Significant
s.23(1)s.30(1)(g)s.30(2)

The questionWhen a company holds the lease but a director actually uses the premises, is the tenancy occupied 'by the tenant' for business purposes at all?

HeldThe court examined the corporate-versus-personal occupation question under s.23 and the extent of occupation needed on the landlord's side for ground (g), including the five-year qualifying condition in s.30(2).

For the tenant

Mixed business and residential use held through a company needs care: the occupation must genuinely be the tenant's, for its business, to attract Part II protection.

For the landlord

Ask who is really in occupation before you assume the Act applies — and check the s.30(2) five-year condition before pleading ground (g).

Gill v Lees News Ltd

[2023] EWCA Civ 1178 · Court of Appeal

Significant
s.30(1)(a)–(c)

The questionHow should the court approach the discretionary grounds of opposition — breach of repair, rent arrears and other substantial breaches — and at what date?

HeldThe Court of Appeal confirmed the court looks at the position at the hearing, in the round: the state of the holding, the tenant's conduct over the whole term, and whether it would be fair to turn the tenant out given all the circumstances.

For the tenant

Fix the breaches and clear the arrears before trial. A cured default plus a decent recent record is usually enough to keep the renewal alive.

For the landlord

Historic breaches that have been remedied rarely win on their own. Build a record of persistent, unremedied default if you intend to rely on grounds (a)–(c).

B&M Retail Ltd v HSBC Bank Pension Trust (UK) Ltd

[2023] EWHC 2495 (Ch) · High Court (Chancery Division) — Miles J

Significant
s.30(1)(f)s.35

The questionWhere a landlord cannot make out ground (f) at trial but does have genuine future redevelopment plans, can the new lease still contain a redevelopment break clause?

HeldYes. The court may impose a rolling redevelopment break where that strikes a fair balance between the tenant's security and the landlord's plans.

For the tenant

Winning the right to renew does not guarantee a clean term. Argue for a longer protected period, notice length and a rent that reflects the break.

For the landlord

Losing the opposition is not the end. Plead the terms case in the alternative and seek a break clause with a workable trigger.

Man Ltd v Back Inn Time Diner Ltd

[2023] EWHC 363 (Ch) · High Court (Chancery, appeal) — Sir Anthony Mann

Significant
s.30(1)(f)

The questionDoes a landlord need funding fully in place to hold a fixed and settled intention to redevelop?

HeldNot unconditionally, but the funding route must be realistic. Conditionality is not automatically fatal — it goes into the balance when the court asks whether the scheme has a reasonable prospect of being carried out.

For the tenant

Attack funding that is aspirational or wholly contingent — that is where weak ground (f) cases break down.

For the landlord

Show the funding pathway even if it is not drawn down: terms sheets, lender correspondence, internal approvals.

Significant
s.38ASch. 1–2 SI 2003/3096

The questionDoes a slip in the contracting-out machinery — the warning notice and the tenant's declaration — revive security of tenure?

HeldNot on these facts. The Court of Appeal upheld the exclusions, taking a practical view of the statutory declaration process where the tenant plainly understood what it was giving up.

For the tenant

Technical arguments about contracting out are worth checking but rarely a silver bullet — look at whether the declaration relates to the tenancy actually granted.

For the landlord

Still follow the procedure exactly: correct warning notice, correct form of declaration, and the 14-day rule respected before completion.

W (No.3) GP (Nominee A) Ltd & anor v JD Sports Fashion plc

Nottingham County Court, 22 October 2021 (E00DE178) · Nottingham County Court — HHJ Fine

Significant
s.34s.35

The questionOn the renewal of a JD Sports unit in the Derbion centre in Derby, could the landlord insist that the new lease carry a turnover rent — as the expiring lease had — instead of a conventional fixed open market rent?

HeldNo. The court refused to impose a turnover rent. Section 34 requires the court to determine the rent at which the holding might reasonably be expected to be let in the open market, and the landlord had not shown that a turnover model was what the market would produce for this unit or that it was fair to force the tenant into it. A fixed rent was determined instead, and the O'May burden of justifying a change of terms was not discharged.

For the tenant

You can resist being locked into turnover rent on renewal even where the expiring lease contained one. Point to the s.34 open market test and to O'May: the party seeking the change carries the burden, and a rent adjustment does not by itself make a new burden fair.

For the landlord

If you want turnover provisions in the renewal lease, you must prove with valuation and comparable evidence that the market would let on that basis — and deal with the tenant's objections to disclosing sales data, audit, exclusions and thresholds. Carrying the term over from the old lease is not enough.

First-instance County Court decision, so persuasive rather than binding — but it is the leading modern authority practitioners cite on turnover rents in 1954 Act renewals, and the transcript is published by Falcon Chambers.

Amika Ltd v Fitzroy Place Residential Ltd

[2021] EWHC 25 (Ch) · High Court

Significant
s.34s.35

The questionHow should the court fix the rent and other terms of the new tenancy where the market has moved between notice and trial?

HeldBy applying the statutory assumptions and disregards to a hypothetical letting at the valuation date, on comparable evidence — not by reference to the parties' expectations when the notice was served.

For the tenant

In a falling market, delay can help you; in a rising one it hurts. Model the valuation date before choosing your pace.

For the landlord

Marshal comparables close to the valuation date, and justify any change of terms under the O'May burden.

Gulf Agencies Ltd v Ahmed

[2016] EWCA Civ 44 · Court of Appeal

Significant
s.30(1)(g)

The questionHow firm must a landlord's intention to occupy be before ground (g) succeeds, and can the tenant reopen the trial judge's findings on appeal?

HeldThe Court of Appeal declined to disturb the trial judge's assessment of the landlord's intention. Ground (g) turns on the judge's evaluation of the evidence at the date of hearing, and an appellate court will not re-run that fact-finding exercise.

For the tenant

Challenge the credibility of the landlord's plan at trial, not on appeal. A disagreement with the judge's evaluation is not a ground of appeal.

For the landlord

Win ground (g) at first instance. Put in the documents — accounts, funding, business plan, resolutions — because the trial judge's findings are very hard to unpick later.

Summarised from appellate reporting on the intention and procedural-fairness issues; read the judgment before relying on it.

Sight & Sound Education Ltd v Books Etc Ltd

[1999] 3 EGLR 45 · High Court

Significant
s.23(1)

The questionDoes a tenant that has sub-let and no longer trades from the premises keep its renewal rights?

HeldNo. Protection depends on the tenant's own occupation for business purposes; once that ends, the tenancy falls outside Part II.

For the tenant

Sub-letting the whole is the most common way tenants unwittingly destroy their own security of tenure.

For the landlord

Investigate occupation on the ground before renewal negotiations — the tenant on the lease may have no claim at all.

Flairline Properties Ltd v Hassan

[1999] 1 EGLR 138 · High Court

Significant
s.23(1)

The questionDoes a lengthy closure for reinstatement after a fire break business occupation?

HeldNo, where the tenant retains the intention to return and the thread of continuity is unbroken; physical absence alone is not decisive.

For the tenant

Paper the intention to return: insurance claims, contractor appointments, licensing, correspondence with the landlord.

For the landlord

A closed unit is not automatically an unprotected one. Test intention to resume, not just the shutters.

Significant
s.25s.44

The questionWhat happens where a section 25 notice is given by a party who is not the competent landlord?

HeldIt is ineffective. Only the competent landlord for the time being can operate s.25, so identity must be established at the date of service.

For the tenant

Always check who served the notice and whether that party was competent — it can buy months and reset the timetable.

For the landlord

Run the title and the intermediate interests first, and use s.40 requests to confirm the chain before serving.

Lee-Verhulst (Investments) Ltd v Harwood Trust

[1973] QB 204 · Court of Appeal

Significant
s.23(1)

The questionIs a tenant who lets rooms to residential occupiers, but supplies substantial services, still in business occupation of the whole?

HeldYes on these facts. Where the services supplied and the control retained are substantial, the tenant occupies the whole for the purposes of its business.

For the tenant

Evidence the service package: cleaning, linen, access control, staff presence. Substantial services support occupation of the whole.

For the landlord

Do not assume residential sub-occupation defeats protection — measure the services and control actually provided.

Tier 4 — Practical / first instance

County Court and first-instance decisions. Persuasive rather than binding, but they show how judges are actually deciding these points now.

Park Cakes Ltd v Caterpillar Property Ltd

Unreported, County Court, March 2026 (M80LS041) · County Court

Practical
s.28s.38A

The questionIs an unexercised contractual option to renew an 'agreement for a future tenancy' under s.28, so that Part II protection falls away?

HeldNo. An option that has not been exercised is not a s.28 agreement. Protection continues unless the contracting-out formalities were properly completed.

For the tenant

If your lease contains an unexercised option, you may still have full renewal rights. Check the s.38A paperwork.

For the landlord

Do not treat a renewal option in the lease as a substitute for contracting out — you need the s.38A procedure.

Very recent first-instance decision, not yet tested on appeal.

Spirit Pub Company (Managed) Ltd v Pridewell Properties (London) Ltd

County Court at Mayor's and City of London, 14 March 2025 (unreported) · County Court at Mayor's and City of London

Practical
s.30(1)(f)

The questionCould a landlord oppose a pub tenant's renewal on ground (f) where it planned to build mews houses in the beer garden and convert upper parts to residential — and did it matter that the plan was accelerated to defeat the renewal?

HeldNo. The works were substantial enough and the intention genuine, firm and settled, but the ground failed on objective intention: the landlord had not shown a real prospect of financing the development, offering no evidence of the directors' means or willingness to give personal guarantees. The court also declined to extend the Franses conditionality principle to the timing of works — accelerating the plan to meet ground (f) was not fatal where the landlord intended to build regardless — and accepted 14 months as a reasonable time to commence works on the facts.

For the tenant

Interrogate the money. Cross-examine on finance, guarantees and planning risk — a genuine plan on paper still fails ground (f) if the landlord cannot show the real prospect of carrying it out.

For the landlord

Prove funding, not just intention: bank evidence, directors' means and guarantees ready to be produced. Timing-motivated acceleration is not automatically a Franses problem, but an unfunded scheme will lose.

County Court decision, persuasive not binding. Reported through chambers commentary (Falcon Chambers, Top 3 Cases March 2025); no neutral citation verified.

Sainsbury's Supermarkets Ltd v Medley Assets Ltd

Unreported, County Court at Central London, 21 March 2024 (H00MK414) · County Court at Central London — HHJ Richard Roberts

Practical
s.30(1)(f)s.32 (the holding)

The questionCan a tenant narrow the premises it actually occupies so that the landlord's redevelopment scheme no longer relates to the holding?

HeldYes. The holding is defined by what the tenant occupies at the date of the hearing, and the landlord's scheme was not shown to require possession of that reduced area.

For the tenant

Rationalising your occupation can be a legitimate defensive move — but document it and take advice on the compensation and rent consequences.

For the landlord

Check what the tenant is actually occupying before you plead ground (f), and design the scheme around the holding as it will be at trial.

First-instance decision: persuasive, not binding.

Old Street Retail Trustee (Jersey) Ltd v GB Healthcare Ltd

Unreported, County Court at Central London, 18 November 2022 (G02CL960) · County Court at Central London — HHJ Richard Roberts

Practical
s.34s.24A

The questionHow should renewal rent and interim rent be assessed where the comparable evidence is distorted by pandemic-era trading?

HeldConventional valuation principles still apply. Comparables are weighted on the evidence rather than by a blanket pandemic discount.

For the tenant

Turnover evidence alone will not drive the rent down; you need valuation evidence on the comparables themselves.

For the landlord

Bring clean, post-disruption comparables and be ready to explain concessions in your own lettings.

First-instance decision on valuation: illustrative rather than binding.

Poundland Ltd v Toplain Ltd

County Court at Brentford, 7 April 2021 (claim F02BM162) · County Court at Brentford — DJ Jenkins

Practical
s.35

The questionOn an unopposed renewal, could the tenant have a pandemic rent-suspension clause imposed on the landlord under s.35?

HeldNo. The court refused to write in a 50% rent suspension triggered by lockdown. It was not fair and reasonable to shift that risk onto the landlord without market evidence that such terms were being agreed.

For the tenant

If you want a modern clause in the renewal lease, come with comparables and valuation evidence — fairness arguments alone will fail.

For the landlord

The O'May burden protects you: novel risk-sharing terms will not be imposed unless the tenant proves the market has moved.

County Court, unreported. Persuasive only; cite by court, judge and claim number.

WH Smith Retail Holdings Ltd v Commerz Real Investmentgesellschaft mbH

County Court at Winchester, 25 March 2021 (claim E01BS237) · County Court at Winchester — HHJ Richard Parkes QC

Practical
s.34s.35

The questionWhere both sides accept some form of pandemic clause, what should it say — and how much weight do pandemic-era comparables carry when fixing rent?

HeldThe clause went in, because its principle was agreed and only the wording was in issue. The court also addressed how far pandemic-affected transactional evidence can be relied on when setting the s.34 rent.

For the tenant

Getting the principle conceded early is what wins the clause. On rent, expect close scrutiny of distressed or turnover-based comparables.

For the landlord

Read alongside Poundland: outcomes on modern clauses turn on the evidence and on what you concede, not on a fixed rule.

County Court, unreported. Persuasive only; cite by court, judge and claim number.

London Kendal Street No.3 Ltd v Daejan Investments Ltd

County Court at Central London, 2019 ([2019] 7 WLUK 589) · County Court at Central London — HHJ Saunders

Practical
s.30(1)(f)s.31A

The questionAfter S Franses, what evidence does a landlord actually need to prove a fixed and settled intention to demolish and reconstruct?

HeldThe landlord made out ground (f). The court set out the practical evidential picture it expected — board authorisation, funding route, planning progress and a scheme that genuinely needs vacant possession.

For the tenant

Test whether the works really require you out. A s.31A offer to give access or take a reduced area can defeat ground (f) where the scheme does not need full vacant possession.

For the landlord

Build the paper trail long before trial: resolutions, costed scheme, funding, planning and a contractor. Vague redevelopment ambition is not enough.

First-instance County Court decision with no standard neutral citation. Persuasive only — verify the transcript before relying on it.

Dukeminster Ltd v West End Investments (Cowell Group) Ltd

County Court, 2018 (reported in practitioner briefings) · County Court

Practical
s.25s.33s.35

The questionDoes a misdescription in a s.25 notice invalidate it, and how should the court fix the terms of the renewal?

HeldThe notice was upheld — a reasonable recipient understood what was meant — and the court gave guidance on setting term length and modernised terms.

For the tenant

Do not build a strategy around a minor defect in the other side's notice.

For the landlord

Get names and addresses right, but a genuine slip that misleads nobody is usually survivable.

Traced through secondary practitioner reporting only; we could not verify a primary transcript. Check the report before relying on it.

Cornish v Brook Green Laundry Ltd

[1959] 1 QB 394 · Court of Appeal

Practical
s.23s.24

The questionDoes occupation under an agreement for lease, before any lease is granted, attract Part II protection?

HeldNot of itself. Protection attaches to a tenancy; possession under an uncompleted agreement may give no protected interest.

For the tenant

Do not trade for long on an agreement alone. Completion is what secures the renewal rights.

For the landlord

Letting a tenant into occupation before completion creates uncertainty on both sides — document the basis.

Where this analysis comes from

Summaries are drawn from the judgments themselves and from published commentary by specialist barristers' chambers. Read the primary source before relying on any case.

Guidance only, not legal advice. County Court decisions are persuasive, not binding.

Frequently asked questions

What did MVL Properties v The Leadmill decide?

The court accepted that the landlord had a genuine, settled intention to occupy the premises itself for its own business under ground (g), so renewal was refused — a reminder that ground (g) can succeed where the intention is evidenced and unconditional.

What is the significance of S Franses v Cavendish Hotel?

The Supreme Court held that a landlord's intention to redevelop under ground (f) must be unconditional; works devised solely to defeat the tenant's renewal claim cannot found the ground.

Why does O'May v City of London Real Property still matter?

O'May remains the leading authority on section 35: the burden lies on the party seeking a change to the lease terms, and the court must be satisfied the change is fair and reasonable, including compensating the other side through the rent.

How strictly are notices construed after Mannai Investment?

Mannai established that a notice is valid if it is clear to a reasonable recipient what the giver intends, so obvious errors may not be fatal — but prescribed-form requirements under sections 25 and 26 must still be met.

Does a history of tenant breaches defeat renewal?

Not automatically. Gill v Lees News confirmed that grounds (a) to (c) require the court to look at the tenant's conduct overall and ask whether the tenant ought reasonably to be granted a new tenancy at the date of the hearing.

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