Reasonableness – It's In The Decision

A Court of Appeal decision on a landlord's refusal to consent to an assignment

It is common for leases to require a tenant to obtain landlord's consent to an assignment, and to provide that the consent cannot to be unreasonably withheld. This unreasonableness condition was recently considered by the Court of Appeal in No. 1 West India Quay (Residential) Ltd v East Tower Apartments Ltd [2018] EWCA Civ 250.

In this case, the landlord refused to consent to the assignment of two 999 year leases of flats at No 1 West India Quay in Canary Wharf. In addition to the payment of service charge arrears, the landlord had imposed three conditions on its consent:

1. an inspection of each flat by a surveyor;