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Assaulted by Esselte

Barry Gross reports on a recent Court of Appeal
decision with serious economic consequences
for landlords

14 June 2002

In Single Horse Properties Ltd v Surrey CC [2002] EWCA Civ 367 the Court of Appeal confirmed that Esselte AB v Pearl Assurance plc [1997] 2 All ER 41 applies even where a tenant has applied for a new tenancy following the service of a s 25 notice. In other words, if a tenant, having requested a new tenancy following service of a s 25 notice, vacates the premises before the contractual term date, the lease will determine on the contractual term date and the s 25 notice will not extend the term of the lease. A brief reminder In Esselte the tenant served a notice under s 27(2) of the 1954 Act. The notice was expressed to expire on the next quarter day three months after the date of service. The tenant moved out of the premises before the contractual term date. The Court of Appeal held the lease came to an end on the contractual term date and was not extended by the s 27 notice. The court considered whether the s 27 notice was a valid notice. Based on the wording of s ...

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