Jurisdiction(s):
United Kingdom

LTA 1954 contracting out: when must landlords and guarantors act? Pretoria Energy v Blankney and guarantor new lease obligations (England and Wales)

Published on: 02 August 2023

Published by a LexisNexis Property expert

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Article summary

Introduction

In recent months, many commentators have examined the Court of Appeal’s ruling in Pretoria Energy Company (Chittering) Ltd v Blankney Estates Ltd [2023] EWCA Civ 482. Much of that analysis has focussed on whether, on the particular facts, signed Heads of Terms resulted in a binding agreement for the creation or other disposition of an interest in land (here, the grant of a lease) within section 2(1) of the Law of Property (Miscellaneous Provisions) Act 1989. This article, however, approaches the decision in terms of its possible ramifications for the procedure to contract out of LTA 1954, Pt II. In particular, remarks by Lord Justice Lewison appear to speak directly to the timing of that process and when the landlord and any guarantor should undertake it.

Background facts

The discussions between the appellant (Pretoria) and the respondent (Blankney) concerned a proposal under which Pretoria would construct and operate an anaerobic digestion plant (ADP) on unused land owned by Blankney. Pretoria would proceed on the basis of a 25-year lease of the land from Blankney. That lease was to be contracted out of LTA 1954. Heads of Terms reflecting that position were signed by the parties. The Heads...

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