Lease of office building modified to allow conversion to residential flats

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2nd October 2019 | Alisha Francis

In the case of Shaviram Normandy Ltd v Basingstoke and Deane Borough Council [2019] the Tenant wanted to convert the building into residential flats.  However, his landlord, Basingstoke and Deane Borough Council, refused to vary the lease so he made an application to the Tribunal under section 84(1) of the Law of Property Act 1925.

The Upper Tribunal (Lands Chamber) decided that a restrictive covenant in a long lease, limiting the use to offices, could be modified to allow residential use.

This case is interesting because it gives an opportunity to developers that is sometimes overlooked but which can be a powerful negotiating tool. If the application is followed through and is successful, it can unlock leasehold land for development against a landlord’s wishes.

For further information please contact Andrew Liddell on 01277 210021.