AP Wireless II (UK) Ltd v On Tower (UK) Ltd [2025] EWCA CivĀ
The Court of Appeal have confirmed the decision of Mr Justice Edwin Johnson that a grant for a minimum term of 10 years (“the Minimum Term”) which may be terminated thereafter “by either party giving to the other not less than 12 months’ notice in writing to expire at any time on or after the expiry of the Minimum Term,” was void as a lease. Such a grant was for a term uncertain at its inception and thus was invalid and ineffective as a lease. The Court furthermore did not follow the House of Lords in Prudential Assurance Co Ltd v London Residuary Body (1992), which held, as part of its ratio, that a tenant entering possession under a void lease and paying a year rent became a yearly periodic tenant. Rather, the Court preferred the obiter approach of Lord Neuberger in Mexfield housing Co-Operative Ltd v Berrisford (2011), that in determining the status of the occupier under a void lease, the Court was required to provide the “best fit” with the parties’ intentions contractually. Accordingly, given that the inference of a contractual licence on the same terms as the agreement respected almost all the terms of the parties’ agreement, including the termination provisions, the court should infer only the grant of a licence.
David Holland KC and Wayne Clark KC appeared for the Appellant and Oliver Radley Gardner KC and Imogen Dodds appeared for the Respondent.
The judgment is available below.
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