Making a breakthrough
With London being a leading city for investment, the property market watched with bated breath as the case rolled on. ‘Frustration’ was debated on the inside and was certainly felt on the outside. The EMA bravely took it’s case seeking to end a 25 year lease which they entered into in 2014.
The lease on 30 Churchill place was entered into without a break clause but EMA hoped that Brexit could be named as a ‘frustration’ which would be reason enough to terminate a contract. While Brexit is proving frustrating for many sectors it has been deemed not to frustrate the lease for EMA.
Justice Marcus Smith said ”the lease will not be discharged by frustration on the United Kingdom’s transition from member state of the European Union to third country nor does the EMA’s shift of headquarters from London to Amsterdam constitute a frustrating event.” He also said that ”the EMA remains obliged to perform it’s obligations under the lease.”
Result Welcomed by Canary Wharf Group
It has been a result worth waiting for in these tricky times. Canary Wharf Group have welcomed it and stated that it is good news for the property and legal markets. Tenants using Brexit to walk away from leases would have caused quite a stir in the property market and in the economy in general. There is now a level of certainty which we can all rely on to bring a sureness back to the market.
Business as usual for the London Property Market
The decision being made has allowed us to reflect on the importance of having a good legal system in place. Likewise the importance of a strong lease and of working in partnership with the leaseholder has been brought to the fore with this case. It is simply time to do what we do best and get back to business.
Interested in investing in Canary Wharf property?
With all of the above in mind it might be time to consider your options. If you are a landlord and have a property you would like leased in Canary Wharf or surrounding, give us a call. Our expert knowledge won’t see you stuck.