Does A Long Leaseholder Have A Right To Release A Right To Light?

This case considered whether a compensation payment to release a right to light should be paid to the freeholder or long leaseholder.

The Facts

RMC was the freeholder and Metropolitan was the lessee of a block of 20 flats at Royal Mint Street, London E1. The north elevation of the block had a number of windows which benefited from light which passed over land to the north of Royal Mint Street and across the street itself. On the north side of Royal Mint Street and directly opposite the block of flats was a development site. The owners of that site obtained planning permission for the construction of a substantial mixed-use development, comprising 354 residential units, a 236-room hotel with 33 serviced apartments and various other uses including retail, leisure and community uses. The owners of the development site commenced the development of the site.