Unused or surplus space can be turned to financial advantage as a source of income generation, if leased. However, the courts in recent cases have highlighted some of the dangers that a landowner faces when granting a third party rights of occupation.
A RIGHT TO CUSTOMERS?
Earlier this year the court decided that London Underground had to pay damages to one of its tenants 1 . The tenant had been granted a lease of a kiosk at a tube station which was only accessible to passengers who were leaving the station. London Underground operated the station in such a way that most of the day the exit was shut, so very few passengers passed by the kiosk. The court decided that this action by the landlord was a "derogation from grant" as the tenant could not use the kiosk as it had intended.
