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[2010] EWCA CiV 117
[2010] 09 EG 167 (CS)
Sale and leaseback Possession
Court of Appeal
Lord Neuberger MR and Longmore and Smith LJJ
24 February 2010
Sale and leaseback of residential property - Final payment of 30% of purchase price not payable to appellant vendor in event of termination of tenancy by respondent purchaser pursuant to rights under tenancy agreement - Termination for arrears of rent - Whether appellant entitled to final payment - Whether repayable as deposit not held by landlord on scheme authorised by Chapter 4 of Part 6 of Housing Act 2004 - Whether provision for retention of final payment unenforceable as penalty or unfair contract term - Appeal dismissed
The respondent company purchased residential properties and leased them back to their former owners. In October 2007, the appellant sold his house to the respondent on that basis and was granted an assured shorthold tenancy. Of the £125,000 purchase price, 70% was payable on completion of the sale and the final 30% was payable after 10 years, when the appellant was to give up possession. Under the terms of the sale contract, the final payment would not be payable if, inter alia, the respondent terminated the appellant's tenancy pursuant to its rights under...