The Quiet Enjoyment Covenant vs a Landlord’s Right to Build

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In the case of Timothy Taylor Ltd v Mayfair House Corporation and another [2016] EWHC 1075 (Ch) the High Court considered the interrelationship between an express right reserved in a lease for a landlord to rebuild and the landlord’s covenant for quiet enjoyment.

The High Court held that despite the lease giving the landlord the right to carry out the works, the landlord had to take all reasonable steps to minimize the disturbance to the tenant. In this case, the High Court held that the landlord was acting unreasonably, and that the steps taken were not sufficient.

The factors that the court took into account included:

• What knowledge or notice the tenants had of the works on commencement of the lease;

• If there were any offers of financial compensation for the disturbance; and

• Who the works were benefiting.

This decision highlights some practical points and factors that a landlord should consider when taking reasonable steps to minimize disturbances to a tenant. It is important to ensure that a tenant has as much information as possible about any proposed works and that practical steps are taken to minimize disturbance.

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The content of this update is for the purpose of providing general legal information. It does not constitute legal advice and should not be treated as such.