Headlease and underlease – surrender – guarantors – unilateral mistake – failure to procure lender’s consent


The Co-operative Bank Plc v Hayes Freehold Ltd and others, also known as Deutsche Bank AG v Sentrum (Hayes) Ltd (In Liquidation) and Sentrum Holdings Ltd [2017] EWHC 1820 (Ch) (Henry Carr J) (20 July 2017
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This rather complex case and set of dealings raises a number of interesting questions relating to the validity of surrenders of leases and releases of guarantees concerning a lease of business premises in Hayes, Middlesex. The importance of the issues can be seen from the line-up of counsel, Jonathan Gaunt QC and Mark Sefton for Deutsche Bank and Ben Valentin QC and Gary Cowen for Sentrum Holdings. The case concerns a deed dated 6 August 2015 entered into between Deutsche Bank, Hayes Freehold and Sentrum Hayes. Sentrum Hayes and Hayes Freehold are both in liquidation and did not participate in the proceedings. Following an eight day hearing Henry Carr J issued a detailed judgment running to 157 paragraphs.