Jessica's comments are published in PropertyWire, 30 June 2025, and can be seen here.
Jessica Anderson, Senior Associate in our Commercial Property team, examines a significant High Court ruling that could reshape how insurance rent is handled in commercial leases.
The case involved Picturehouse Cinemas successfully challenging their landlord, London Trocadero (2015) LLP, over the recovery of insurance rent. The landlord had sought to recover the full gross insurance premium, despite receiving commission rebates from brokers, a practice the tenant argued was unjustified.
The court sided with the tenant, ruling that the landlord could only recover the net cost of the insurance, the actual amount paid after deducting any commissions. The judgment clarified that unless a lease explicitly allows for profit-making through insurance arrangements, landlords must not pass on inflated costs to tenants. This decision reinforces the principle that service charges and insurance rent must reflect genuine, transparent expenses.
Jessica highlights that this ruling is likely to prompt landlords to review their lease terms and insurance arrangements, particularly around the disclosure of broker commissions. It also empowers tenants to challenge opaque or excessive charges. As the commercial property sector continues to evolve, this case serves as a timely reminder of the importance of clarity and fairness in lease obligations
Read the full article on the PropertyWire website [external link].