Virtual assignments come of age
Language: English Series: Lovells Real Estate Quarterly ; Spring 2010, 3-4(2)Publication details: 2010Subject(s):- CLARENCE HOUSE LTD V NATIONAL WESTMINSTER BANK PLC
- ABBEY NATIONAL PLC V CUSTOMS AND EXCISE COMMISSIONERS
- LAW OF DISTRESS AMENDMENT ACT 1908 S6
- England and Wales -- 1543-
- PROPERTY-COMMERCIAL PROPERTY-LEASEHOLD COMMERCIAL PROPERTY-COMMERCIAL LANDLORD AND TENANT-COMMERCIAL LEASES-ASSIGNMENT OF COMMERCIAL LEASES
Item type | Current library | Call number | Copy number | Status | Date due | Barcode | |
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Journal article | London Journal article | L149896 (Browse shelf(Opens below)) | 1 | Available | 149896-1001 |
Virtual Assignments (VAs) are transfers of the economic burdens and benefits of a lease without any actual assignment of the underlying leasehold interest or any change in the occupancy of the premises. Generally landlords have accepted this new concept but it has recently been challenged in Clarence House Ltd v National Westminster Bank PLC, [2009] EWCA Civ 1311, CA (see E149610). The Court of Appeal held that the VA did not amount to a breach of covenants in the bank's lease and did not alter the underlying relationship between landlord and tenant. VAs will continue to serve the industry,helping tenants without damaging the interests of landlords.