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

  • Double jeopardy of digital asset inheritance planning amid probate delays
    Hidden digital assets and mounting interest on inheritance tax bills are creating a costly double risk for families dealing with estates following the death of a loved one, as probate delays continue to impact thousands across England and Wales, addi


    Read more
  • Deal or no deal? Keeping negotiations on track
    How to keep commercial deals on track with Heads of Terms, NDAs and exclusivity, improving efficiency, reducing risk and avoiding delays.


    Read more
  • Rights and wrongs: How AI is reshaping Employment Tribunal claims
    AI may be a familiar presence in the workplace, but it’s now starting to appear somewhere less expected: the Employment Tribunal (ET). Grayson Stuckey explores this trend – and what it means for employers.


    Read more
  • Renters’ Rights Act: why process and paperwork matter more than ever for landlords
    The Renters’ Rights Act has now passed into law, marking one of the most significant shifts in the private rented sector in a generation. Most of the new measures will take effect in May 2026, with a national landlord database to follow later in th


    Read more
  • Understanding the Roles of Executors and Trustees
    When making a will, you place significant trust in those appointed to carry out your wishes. Executors and trustees are key roles, often held by the same people, but their responsibilities differ. Understanding these roles and their obligations helps


    Read more

What they say...

  • W Sandover, April 2026
    Boundary Wall dispute “Although (for complex, not relevant) reasons, this matter never reached the point of either negotiations or a court case, Barker Gillette staff provided us with excellent support. I would certainly go back to them in the

  • Client, April 2026
    Excellent suppy “Karen Cole supported me through a difficult time with warmth and professionalism. She made the entire process as smooth as possible, responding quickly to communication and giving clear advice. I would highly recommend Karen to

  • Client, April 2026
    So helpful! “Pippa Marshall listened and offered supportive, practical advice. She was very friendly, easy to talk to and did not pressure me to make any costly decisions during my free 30-minute consultation. I would definitely recommend Pippa

  • Nika Franke-Matthecka, April 2026
    “We had an excellent experience working with Michael Davies and his team on the sale of our property. They were efficient, knowledgeable, and highly diligent throughout the entire process. Communication was always prompt and clear, which made w

  • Paul Woodman, March 2026
    Will writing “Excellent service from start to finish. Efficient and good value. Charlotte was very professional, knowledgeable and understanding.”

Read more
Send this to a friend