HS2 - Leaseholders beware!

Last year, a legislative amendment designed to solve an anomaly whereby tenants with unprotected, or minor, tenancies receive less 'disturbance' compensation under a CPO than either licensees or tenants with protected tenancies has, for HS2 compensation claimants, ended up creating a two-tier compensation system. The change, effective from 22 September 2017, is not retrospective which means that the compensation claims of tenants affected by Phase 1 of HS2 (which has already had CPO powers granted by Royal Assent) and those who are affected by Phase 2 (which has not) will be treated differently.

Principle assumes landlords would terminate lease at first opportunity

The original anomaly dates back to the 1960s when a case, Bishopsgate Space Management Ltd v London Underground Limited, led to a decision which became known as the Bishopsgate Principle. This rested on the assumption that a landlord would terminate a lease at the first possible opportunity, regardless