Apparently, Brexit is NOT frustrating court rules…



In a very significant legal case, a tenant is attempting to use Brexit as a means of terminating its commercial lease.

The tenant has decided to relocate its head office from London to mainland Europe - it signed a 25-year lease with the Landlord some five years ago.

The legal principle of “Frustration” relates to an event occurring that could not have been contemplated or foreseen at the commencement of the contract which substantially alters the performance of the contract, to the extent it would be inequitable for the contract to continue.

The tenant argued that Brexit was not an event that could have been foreseen by either party at the time the lease was completed, and the lease is therefore frustrated.

The High Court ruled that the tenants lease is not frustrated to the relief of all Landlords with property leased to foreign companies.

However, the tenant has been granted leave to appeal.

The potential implications for commercial Landlords, if the Court of Appeal rules that Brexit is a frustrating event, is huge and could open the floodgates with many other tenants claiming frustration to terminate their leases.

Watch this space!


Read our previous Brexit blog “How Brexit is Affecting the Housing Market Now…”

To read more articles on the property sector from Nick Symes, Director of Property, please visit:

Tags: brexit | commercialproperty | propertyinvestors | landlords | propertylaw