22/01/2010

A number of recent cases have raised the issue of car parking once more. With councils increasingly imposing restrictions on on-street car parking and the price of parking ever rising, the issue of having adequate parking rights is rarely out of the spotlight.

We explore the problems many are facing in what is an increasingly complex issue.

Smoke & Mirrors?

A number of recent cases put the rights of those leasing property to park vehicles at these premises in doubt. We explore the problems many are facing in what is an increasingly complex issue.

In many modern developments and business units Landlords grant Tenants a right to park in either a designated space, a designated area or in a space the Landlord chooses from time to time. These methods and the specific drafting of these rights have come under close scrutiny. In the case of Batchelor v Marlow, the court held that many common car parking arrangements are not legal rights as the right would deprive the owner of the land of any reasonable use of the land himself and thus render his ownership as merely illusionary. Without a legal right or having the space including as part of the property that is being let Tenants’ car parking arrangements are at risk. This could have the consequence of Landlords being able to stop a Tenant from being able to park in what the Tenant considers to be their parking space or altering its location without the Tenant’s consent. This in turn could have knock-on consequences for businesses by way of restricting ability for clients and customers to attend the premises, restricting delivery options and further could have staff issues when car-parking is offered as a benefit of employment.

Subsequent cases have explored this further and whilst the court has allowed some arrangements to exist these have been very limited and restricted to specific circumstances- they cannot be relied upon to provide Tenants with adequate protection generally. The courts have further been keen to reiterate that the principle contained in Batchelor v Marlow is correct.

Landlords and Tenants now have a difficult task in balancing the Landlord's desire for flexibility with the Tenant's need for certainty. Tenants will invariably wish for the Landlord to agree to sidestep this issue and forego any flexibility by providing the tenant with a car parking space that is included within the area being let. The Landlord however must consider the impact that this will have on his development/business units and current and future tenants of the property and consider other options such as unallocated parking.

For further information please contact Natalie Biggs on 01603 610481.