Restriction on user – construction of lease – the correct approach

Aaron William Burchell v Raj Properties Ltd [2013] UKUT 0443 (LC) (23 September 2013)

The Upper Tribunal (Lands Chamber) was recently called on to construe the alienation terms of a lease. The context of the decision was an appeal concerning the terms of a new lease to be granted pursuant to the Leasehold Reform, Housing and Urban Development Act 1993 (the 1993 Act).The issue was whether the restriction on user precluded sub-letting. This would have an impact on value because it might deter prospective purchasers who might be buying the flat as an investment and proposed to sublet.