Opposing renewal under ground (f)—Franses applied and the relevance of a threatened injunction (London Kendal Street No3 Ltd v Daejan Investments Ltd)

Article summary

Property Disputes analysis: Towards the end of last year, the Supreme Court decision in S Franses Ltd v Cavendish Hotels (London) Ltd caused quite a stir. In that case, a landlord devised a scheme of works with no practical value solely to obtain possession of valuable space. The Supreme Court ruled that to oppose a statutory lease renewal under section 30(1)(f) of the Landlord and Tenant Act 1954 (the redevelopment ground), a landlord’s intention to do the works in question cannot be conditional on whether its tenant chooses to seek a new lease. The acid test is whether the landlord would do the works if the tenant left voluntarily. Although only a County Court decision, this case is the first reported decision in which a court has had to apply the Franses test. Arguments based both on the Franses test and on the possibility of other tenants in the building obtaining an injunction to stop the works were unsuccessful—the landlord had the requisite intention required by ground (f) to carry out its works. Written by David Harris, Professional Development Lawyer at Browne Jacobson LLP. Sign in or take a trial to read the full analysis.