Hilton v Plustitle Ltd [1988]

The landlord let a flat to a limited company for a six-month term, so as to enable a director of the company to occupy the flat without the right of becoming its statutory tenant under the Rent Act 1977. A three-month extension of the term expired and the director, who had been occupying the flat since the letting and paying the rent, refused to give up possession. The landlord applied for possession.

HELD: The judge made the possession order on the basis that the director was not a tenant of the flat, as the letting to the company was not a sham. The Court of Appeal dismissed the appeal as the letting was not a sham and there was no reason to override it. Even though the purpose of the letting was to prevent the creation of a statutory tenancy, the parties both intended that the flat was to be let to the company and not the director personally.

Citation: Hilton v Plustitle Ltd [1988] 3 All ER 1051