Greenpine Investment Holding Limited

<p>In two claims heard together in the Chancery Division of the High Court, the court examined the operation of the statutory scheme in the Leasehold Reform, Housing and Urban Development Act 1993 Part I, Chapter II (claims for a new lease).&nbsp; The two issues before the court were (1) whether the freeholder’s requirement for a foreign lawyer’s opinion was a “term of acquisition”; and (2) whether a solicitor’s statement that “we will complete on receipt of funds” was a solicitor’s undertaking that could be relied on as a formal undertaking to force completion of the transaction.</p><p>The Tenant was incorporated in the British Virgin Islands and held two underleases of a flat and garage.&nbsp; On 20^th May 2014 the Tenant served a section 42 notice on the Landlord seeking a new lease and setting out proposals.&nbsp; A counternotice was served setting out counter-proposals and subsequently the parties entered into negotiations.&nbsp; By November 2014, the freeholder informed the Tenant that a foreign lawyer’s opinion would be required from a BVI lawyer confirming the tenant’s status, capacity and financial solvency prior to completion.&nbsp; The Tenant agreed to obtain and provide the opinion.</p>