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

  • Transactional documents in a corporate sale: What sellers should know
    Once due diligence is complete and terms are agreed, the focus turns to negotiating the transactional documents that underpin a share or asset sale. This guide explains the purpose of the key documents involved in business acquisitions and why carefu


    Read more
  • Employer warning as immigration raids hit record high 
    Employers are being urged to review their recruitment procedures after new figures revealed that immigration enforcement raids have reached record levels across the UK.


    Read more
  • Planning for the future: What to include in a UK shareholders’ agreement
    A well-drafted agreement sets clear ground rules for how the company is run, how decisions are made, and what happens when circumstances change.


    Read more
  • Understanding Court of Protection applications in England and Wales
    When someone can no longer make decisions for themselves and has not put a Lasting Power of Attorney in place, the Court of Protection can step in. This article explains what the Court of Protection does, when an application may be needed, and what t


    Read more
  • Warranties and indemnities: Key protections in share and asset sales
    An overview of warranties and indemnities in share and asset sales, explaining key differences, common protections, liability limits and risk allocation.


    Read more

What they say...

  • Laura Kelly, February 2026
    Review of legal guidance received “I recently worked with Patrick Simpson on my settlement agreement. Patrick guided me through every stage with exceptional care and diligence. He kept the process moving efficiently, always updating me promptly

  • Prasanna Sooriakumaran, February 2026
    “Really good, especially at dealing with the company that tried to overplay their hand. I highly recommend.”

  • Sharla Munian, February 2026
    Outstanding Legal Support and a Brilliant Result “I cannot recommend RIAA Barker Gillette highly enough. My solicitor supported me throughout a very challenging property litigation matter, and thanks to her expertise, dedication, and strategic

  • Client, February 2026
    Very good service in disagreement with architect “RIAA assisted me in a conflict I had with my architect, who wanted to overcharge me. The end result was satisfactory, with invoices reasonable despite being slightly higher than expected!”

  • Sharla Munian, February 2026
    Outstanding Solicitor Who Delivered the Outcome I Hoped For “After a number of years navigating a complex financial settlement following my separation, my solicitor has been incredible from start to finish. Their professionalism, patience, and

Read more