Briefcase Quarterly Update - Key Real Estate Cases and Updates - March 2022

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Gabb v. Farrokhzad - Landlord's Unreasonable Refusal to Consent to an Assignment of a Lease -

..Mr Gabb owned a flat in Kensington and had a difficult relationship with his landlord, Mr Farrokzhad. Following some disputes, Mr Gabb resolved to sell his flat and applied to his landlord by email for consent to assign his long lease. f

..The lease contained a fully qualified covenant which meant that landlord’s consent cannot be unreasonably withheld. The Landlord and Tenant Act 1988 also imposes obligations on a landlord to respond within a reasonable time.

..Some 18 months elapsed without consent being given and at least one buyer was lost, much to Mr Gabb’s frustration.

..Mr Gabb claimed that Mr Farrokhzad had acted unreasonably in refusing consent and as such he was entitled to a declaration and damages under the 1988 Act to compensate him for the losses suffered. Interestingly Mr Gabb also claimed the unusually sought exemplary damages and an injunction requiring his landlord to comply with the lease obligations in future. In response, Mr Farrokhzad claimed that his actions had not been unreasonable, but even if they had been, Mr Gabb’s application for consent had been invalid under the 1988 Act.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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