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Presumption of reality

Beegas Nominees Ltd v Decco Ltd [2003] EWHC 1891 (Ch); [2003] 43 EG 138 As a general rule the court will construe a rent review clause by relying upon the presumption of reality. In 1988 the Court of Appeal set out the position in relation to the hypothetical lease that may need to be valued for rent review purposes (Basingstoke and Deane Borough Council v Host Group Ltd [1988] 1 WLR 348). In particular Nicholls LJ said this: “Of course…

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