This case concerned the scope of the Leasehold Reform Act 1967. The property in question was originally constructed as a house in c.1850. The only major structural works since that date were the addition of a third and fourth floor. Since 1965 the top floor was used as residential accommodation, with the remaining 88.5% of the property used as office space, under short term sub-leases. The lease specified that the fourth floor was to be used as private residential accommodation in the occupation of a director, partner, officer, or senior employee of the company, organisation or firm occupying the rest of the premises. The remaining floors could only be used as business or professional offices. However, any external indication that the building was commercially used was prohibited, including a requirement that windows should be furnished like a private dwelling.

A key issue for tenants serving notice on their landlords to purchase their freehold or extend their lease under the provisions of the 1993 Act will always be the offer figure put forward in their initial notice. ‘If the offer figure is too low, the claim will be invalid’ is the conventional wisdom. But is this quite correct? Mark Chick considers the landmark ruling…