Skip to main content

News story

October 24, 2019

Scheme of works: true intentions

The Supreme Court rules on the Landlord & Tenant Act 1954

A landlord intending to redevelop, demolish or carry out a substantial scheme of works can no longer rely on the Landlord & Tenant Act 1954 (the LTA) to defeat a tenant’s application for a new lease.

In the case of S Frances Limited v The Cavendish Hotel (London) Ltd, the Supreme Court held that under the LTA, a landlord’s intention behind a scheme of works must be independent of the tenant’s claim for a new lease.

This decision marks a significant departure from previous case law. The court can now investigate any scheme of works proposed by a landlord and consider their nature and intention, before coming to a decision on the grant of a new lease to an existing tenant.

Except where the LTA has been specifically excluded from a lease, a business tenant who occupies premises for business purposes is entitled to a new lease at the end of the term under the LTA. Unless a landlord can prove that one or more of the LTA’s specific grounds for opposing the grant of a new lease applies.

Section 30(1)(f) of the LTA is known as the “redevelopment ground” and requires that a landlord intends to demolish, reconstruct or carry out a substantial construction scheme of works on the premises, which they could not reasonably do without obtaining possession.

Previously a landlord’s motive was irrelevant. However, in the Frances case, it was shown that the landlord had devised a scheme of works, which met the statutory criteria under the LTA, but that it intended to recover possession of the premises without a commercial benefit and that it may not carry out those works.

The Supreme Court held that to satisfy the criteria, a landlord’s intention must exist independently of the tenant’s claim for a new lease and must not be conditional upon whether the tenant wishes to remain at the premises. It applied the test of whether the landlord would still do the same scheme of works if the tenant left voluntarily.

Tenants will be pleased with this decision, as it has gone some way to ensuring that the spirit of the LTA has been maintained. Consequently, tenants can analyse their landlord’s intentions and schemes of work in greater depth and attempt to challenge the scheme of works’ necessity rather than just vacating the premises.

Each side’s negotiating position is more important than ever. The decision is likely to result in more landlord’s considering the proposed terms of a new lease with a potential redevelopment break, rather than having to devise a scheme of works to obtain possession, where they risk having to prove their intentions, or in cases where only part of the premises is required, to complete the scheme of works.

Our experienced property litigation team can advise landlords and tenants on the provisions and consequences of the LTA. Call property litigation lawyer Laura St- Gallay today.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Stay in touch

Subscribe to our newsletter

Stay in touch

By completing your details and submitting this form you confirm you are happy for us to send you marketing communications and that you agree to our Website Privacy Policy and Legal Notice and to us using Mailchimp to process your data.


Sending

News/Insight

  • Pay transparency in recruitment: Is your business ready to disclose salaries?
    Employers may eventually have to provide salary information much earlier in the recruitment process under proposals being considered by the Government.


    Read more
  • Pension inheritance tax changes will increase executors’ responsibilities from April 2027
    From 6 April 2027, most unused pension funds and pension death benefits will be included within the scope of Inheritance Tax. We explain what the changes mean for executors, why estate administration may become more complex and how careful planning c


    Read more
  • What is company record keeping and why is it important?
    Accurate company record keeping is essential for meeting legal obligations, protecting directors and shareholders, supporting business decisions and reducing risk. This guide explains which records companies should maintain, why they matter and the c


    Read more
  • Buying a commercial unit: what you need to know
    Buying a commercial unit can be a valuable step for your business, but it comes with legal, tax, planning and property risks. Brinda Granthrai explains what buyers should consider before committing.


    Read more
  • Pension and inheritance tax changes from April 2027: why now is the time to review your will and estate plan
    From 6 April 2027, most unused pension funds and pension death benefits are expected to be included in a person’s estate for inheritance tax purposes. This article explains what the changes could mean for families, pension nominations, wills, chari


    Read more

What they say...

  • Client, July 2026
    Constructive and empathetic “I contacted Pippa Marshall at RIAA Barker Gillette through a recommendation regarding a family law matter. Pippa was always clear, efficient, empathetic and helpful, offering constructive insights on my situation. I

  • Dino, July 2026
    A lucky professional meeting! “We had an excellent professional experience to recommend to all those who need legal help in the UK.”

  • Client, July 2026
    10-star service from Patrice Lawrence “I cannot encompass in words how brilliant a service and support I have received since working with Patrice. Effective efficiency, exceptional excellence. All this and more. I am grateful that Patrice manag

  • Dino, July 2026
    Unexpected and very valid professional experience “Law firm to be recommended also to non-residents in the UK”

  • Client, July 2026
    Seamless experience “My recent experience with RIAA Barker Gillette was exceptional. They provided considered care, attention to detail, and I felt supported every step of the journey. This was my first time working with a solicitor, and I was

Read more
Send this to a friend