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ARTICLE · 02 JUNE 2016

Development – The Clash Of Covenants

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The recent High Court decision in Timothy Taylor Ltd v. Mayfair House Corporation and another [2016] EWHC 1075 (Ch) illustrates a point made in our recent article "Upward development – the extra layer"...

United KingdomReal Estate and Construction
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The recent High Court decision in Timothy Taylor Ltd v. Mayfair House Corporation and another [2016] EWHC 1075 (Ch) illustrates a point made in our recent article " Upward development – the extra layer", that landlords undertaking works to a let building need to carefully consider the interplay between the exercise of any reservations in the letting documents and the covenant for quiet enjoyment. 

Background

In 2007 the tenant (Timothy Taylor Limited) took a lease of ground floor and basement premises in Mayfair for use as a high-class modern art gallery. In 2013 the landlord (Mayfair House) commenced redevelopment works to the upper floors of the building (of which the premises formed part) with the intention of creating a number of residential flats.

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