Business lease renewal – negotiations for a new tenancy – subject to contract - legal effect on interim rent

Goldpine Estates Limited v Boots UK Limited [2014] EWCA Civ 1565 (18 June 2014)

In our September 2014 issue, Commercial Leases [2014] Vol 28 issue at p2092 we mentioned this case in brief and said we would revert to it when the transcript of the full judgment was to hand and the full facts were known. We now have it. The appeal was heard by the Chancellor of the High Court (Sir Terence Etherton) and Christopher Clarke LJ. The two issues that arose were (1) whether the judge was correct to have held that Boots’ application for an interim rent was to be determined in accordance with s24C rather than s24D Landlord and Tenant Act 1954 (the Act); and (2) whether the judge was correct to have ordered the grant of a new tenancy pursuant to s29 of the Act on the terms of a draft lease presented to him despite the tenant’s contention that the draft was under negotiation and remained “subject to contract”.