Attention to detail can prevent a bruised ego, says Rachel Watkin
Landlords are reminded by the recent case of Leonora Investment Company Limited v Mott McDonald Limited (2008) EWCA Civ 857 of the importance of ensuring that procedures set out in a lease are followed to the letter and not to be too proud if they find that they have proceeded incorrectly. The case also acts as a reminder to tenants who may find it financially beneficial to be aware of the terms of their lease, as even if the payments are due under the contract, if the correct procedure for demand is not followed, no duty to pay service charges may arise.
In Leonora v Mott McDonald, failure to follow the procedures set down in the lease led to the landlord being unable to recover the sum of £263,117. The case concerned a 13 story office block in Croydon. The ground, first, second and third floors of the building were let to Mott Macdonald Limited for a terms of 10 years by four leases which were effectively identical.
The leases provided for
