Q&As
Does the Costs of Leases Act 1958 prevent recovery of landlord costs following tenant discontinuance of lease renewal proceedings?
In respect of a commercial lease renewal, it is commonly the case that the landlord and the tenant each pay their own costs associated with the renewal. Prior to 1958 it had been the norm that the tenant would pay the landlord’s costs, but this practice was 'destroyed' (Regis Property Co Ltd v Lewis & Peat) by the enactment of the Costs of Leases Act 1958 (CLA 1958). CLA 1958, s 1 provides that notwithstanding any custom to the contrary, a party to a lease shall, unless the parties thereto agree otherwise in writing, be under no obligation to pay the whole or any part of any other party’s solicitor’s costs of the lease. In Cairnplace Ltd v CBL (Property Investment) Co Ltd the Court of Appeal made clear that absent an agreement a party was extremely unlikely to be forced to pay the costs of the other party in respect of the lease.
It should be noted however that
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