Lease Renewals: What rights are to be included in the renewal lease

Rights enjoyed by tenants outside the terms of the lease will not be included as a formal right on a renewal lease.

A recent Court decision has held that whilst the tenant enjoyed the right to park outside its premises under a licence from the landlord, the tenant could not use the lease renewal to upgrade the right to park to a formal right in the renewal lease.

The Court held that the meaning of “rights enjoyed by the tenant in connection with the holding” did not include rights outside the terms of the lease even though the right may be enjoyed in connection with the tenancy. Therefore where a tenant may be granted a licence to park on another part of the landlord’s land, if this right is separate to the tenant’s lease, the tenant has no right to have the right to park incorporated on renewal.

This case may serve as a warning to tenants who take for granted that they can park, unload or accept deliveries in areas where no formal rights to do so are granted. In comparison landlords may take comfort from the fact that tenants cannot upgrade their rights where they have only been granted a licence.

Picture Warehouse Limited -v- Cornhill Investments Limited