As a follow up to the previous blog which discussed the principle of withholding landlord’s consent in theory, this blog article will look at it in practice, and will focus on the recent Outer Court case; Homebase Limited v Grantchester Developments (Falkirk) Limited [2015] CSOH 49. This case relates to a lease of retail premises in Falkirk, where the Landlord was Grantchester, and the Tenant was Homebase.
Background
The Tenant wanted to assign their interest in the Lease to another company called CDS (Superstores International) Limited (“CDS”). Under the Lease, the Tenant was not permitted to assign their interest, without first obtaining the prior written consent of the Landlord. The consent was not to be unreasonably withheld or delayed, in terms of an assignee “of sound financial standing demonstrably capable of fulfilling the Tenant’s obligations” under the Lease.