Mixed use scheme – transfer of freehold – right of first refusal – effect on commercial leases

Artist Court Collective Ltd v Sardar Muhammad Ishaq Khan [2016] EWHC 2453 (Ch) (Henderson J) (7 October 2016)

Practitioners acting for or advising investors in commercial developments will inevitably come across mixed-use schemes from time to time. The private residential sector is highly regulated and advisers need to be aware of the issues to look out for and to keep abreast of developments. For example, the court has recently confirmed and clarified that where a development includes residential accommodation in circumstances where the residential lessees will be required to contribute to the cost of major works by way of a service charge, there is a duty to consult the residential lessees in accordance with s20 Landlord and Tenant Act 1985.