Snapshots from Commercial Property – October

In this special feature, our commercial property team provide snapshots of the latest commercial property law news throughout October.

Landlord insurance windfall precluded

Until recently, only where the property was damaged by fire was the law clear that any landlord receiving insurance proceeds must use the funds for reinstatement of the damage caused. In all other circumstances, where the lease was silent, the Landlord was free to argue that they could retain any insurance money received for their own use. Recently, however, the court has issued a declaration stating that where a tenant has a full repairing and insuring lease but insures in the joint names of the Landlord and Tenant, a term will be implied into a lease to require the Landlord to expend any insurance money received by it in reinstating the Property (Colt Group Ltd v Unicourt Wandsworth LLP) leaving the tenant confident that the insurance policy they put in place will serve the intended purpose.

The new tenant of premises following forfeiture of the previous lease – beware 

Recent case law (Keshwala v Bhalsod) has provided a gentle reminder to landlords and new tenants alike that the granting of a new lease following forfeiture for non-payment of rent will not be a bar to the court from granting relief from forfeiture to the dispossessed former tenant. In this case, as the former tenant was prepared to accept a reversionary lease, their application for relief from forfeiture was granted even though the premises had been re-let.

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