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Tindall Cobham 1 Limited and others v Adda Hotels and others [2014] EWCA Civ 1215

Friday 5 September 2014

Court of Appeal addresses issues left unresolved by K/S Victoria v House of Fraser

The Court of Appeal has handed down an important judgment relating to leasehold guarantees and intra-group transfers. Julian Greenhill of Wilberforce Chambers appeared as junior counsel for the successful respondents in an expedited appeal in Tindall Cobham 1 Limited and others v Adda Hotels and others [2014] EWCA Civ 1215.

The Court of Appeal held that a provision in a lease entitling the tenant to assign to a group company on condition that the tenant procures a continuing guarantee from its existing guarantor is invalidated by section 25 of the Landlord and Tenant (Covenants) Act 1995.  This case addressed important issues that were left unresolved by the earlier decision of K/S Victoria v House of Fraser [2012] Ch 497 and is of major significance to all property practitioners.

Download the judgment here (Crown copyright)