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This is the latest decision in the long running dispute arising out of a collective enfranchisement claim for premises in South Street, Mayfair. An issue arose as to the price payable for certain overriding leases which had been granted by and to the appellant companies. They were granted in terms which allowed alienation with consent not to be unreasonably withheld, subject to certain requirements. The licences to underlet which were granted contemporaneously with the leases contained a more onerous absolute covenant against alienation. The effect of this was to reduce the value of the leases by 30%. The appellants contended that covenant in the licences should be read as a qualified covenant, either to correct a mistake or on the basis of an implied term. Judge Elizabeth Cooke, sitting in the Upper Tribunal, dismissed the appeal, holding that there was no mistake and no basis for implying a term. Tom Jefferies, led by Stephen Jourdan QC acted for the first respondent. Jonathan Gaunt QC and Anthony Radevsky acted for the appellants.
