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Hilton v Plustitle [1989] 1 WLR 149

By Oxbridge Law TeamUpdated 04/01/2024 07:01

Judgement for the case Hilton v Plustitle

Table Of Contents

  • Plaintiff let a flat to a company, Defendant 1, set up by Defendant 2, so that both sides could avoid the Rent Act and so that, although Defendant 2 would be the one occupying and paying the rent, it would be let to the company, not him.

  • Defendant 2 tried to claim that he was a tenant.

  • CA held that although the arrangement was made purely to avoid the Rents Acts, both sides were aware of the implications and Defendant 2 was not a tenant. (see Gardner’s explanation above).

Croom-Johnson LJ

  • It isn’t against policy for people to create licenses instead of leases and where they intend to do this it is fine.

  • The problem is only where the parties intend a tenancy but create a licence. Here a lease was never intended.

The mere fact that the purpose of the legal arrangement was to prevent the creation of the statutory tenancy is by itself not enough.

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Land Law notes fully updated for recent exams at Oxford and Cambridge. ...