When does a landlord unreasonably withhold consent to tenant alterations?
In Messenex Property Investments Ltd v Lanark Square Ltd [2024] EWHC 89 the High Court considered whether the landlord, Lanark, had unreasonably withheld consent for alterations requested by the tenant, Messenex.
Messenex’s proposed building works included rooftop and ground floor modifications, and the landlord’s prior consent written was required under the lease “not to be unreasonably withheld or delayed”.
Messenex’s requests for consent began in 2020 and Lanark requested further information to be able to consider the request. This correspondence went on for almost 3 years until Messenex referred the matter to the Court.
Key issues revolved around the tenant’s failure to provide necessary structural engineer’s drawings, and its refusal to offer an unconditional undertaking for the landlord’s legal costs. The Court found that Lanark’s concern about the structural impact of the works was valid. Therefore, the landlord’s decision to withhold consent was seen as reasonable, primarily due to the lack of vital documentation from the tenant and concerns over the building’s structural integrity.
The judgment highlighted that landlords are not obliged to grant consent if the tenant has not met reasonable requests, such as providing critical information about the proposed alterations. This ruling follows principles established in earlier cases, where some reasonable grounds for withholding consent can suffice, even if other grounds are unreasonable.
This case reinforces that when seeking consent for alterations, tenants must fulfil reasonable requests to avoid disputes.
Posted on 09/09/2024 by Ortolan
