Aberdeen Steak Houses plc v Crown Estate Commissioners [1997]

The landlord granted a lease of the basement of a property, and this was assigned to the claimant tenant. The claimant tenant was protected as a business tenant. In 1994 the landlord decided to redevelop the property and whole premises, so sent to the tenant notice intended to terminate the lease. A covering letter informed the tenant that the notice was being served both under statute and in accordance with the break clause in the lease which provided that if the landlord desired to demolish or reconstruct the property notice in writing was to be given to the tenant.

 

The tenant gave counter-notice, seeking a new tenancy and stating that it was not willing to give up possession. The tenant applied for a declaration that the notice served by the defendant under statute was invalid, and argued that the notice was not effective as the landlord had not satisfied the requirement in the lease that to exercise the break clause the landlord must have ‘desired’ to demolish or reconstruct the building at the date of service of the notice.
The landlord contended that the notice was effective as a break notice and as  statutory notice, and that it was statutorily entitled to refuse to grant a new tenancy.

HELD: The tenant’s application was dismissed and the break clause was declared to be effective.  The court said that the word ‘desire’ means just to wish for something, so it was sufficient that the landlord had contemplated the demolition or reconstruction of the premises at the time the notice was served. The covering letter operated as a valid break clause and as a valid statutory notice.

Citation: Aberdeen Steak Houses plc v Crown Estate Commissioners [1997] EGCS 14