Mesne profits Definition

GLOSSARY

Published by a UU��ֱ�� Property expert

What does Mesne profits mean?

An amount payable by a person in possession or occupation of land in circumstances when that person has no right to be in possession or occupation.

Mesne profits are the monies payable by the person in possession or occupation to the person who has a better right to possess or occupy. They are calculated as the value of remaining in possession or occupation for the relevant period.

Property

An amount payable by a person in possession or occupation of land in circumstances when that person has no right to be in possession or occupation.

View the related practice notes about Mesne profits

Claims for use and occupation, mesne profits, double rent and double value

This Practice Note provides guidance on claims for ‘use and occupation’ or mesne profits, and how and when double rent or double value can be claimed.Claims for use and occupationA claim for use and occupation is possible where there is occupation of land without an express agreement fixing the amount of rent. The landlord may bring a claim to recover a reasonable rent for the land so occupied. Compensation is recovered as damages for breach of an implied agreement to pay for the use of the land.The claim lies only if the tenant has actually entered on the premises with the landlord’s permission, not as a trespasser (in which case see Mesne profits below). The landlord must show an express or implied contract with the occupier, and they must have the legal estate (Morgell v Paul (1828) 2 Man & Ry KB 303 (not reported by UU��ֱ��®)). A legal title by estoppel is sufficient, eg where they have let the premises to the defendant, or where the defendant has recognised...

VAT issues for lease assignments and terminations

VAT issues for lease assignments and terminations This Practice Note is about the VAT issues to consider on the assignment or termination of a lease. In this Practice Note, unless stated otherwise, termination means any form of termination of a lease, including surrender, exercising an option to break, forfeiture and disclaimer on insolvency. Must the seller account for VAT? VAT will be chargeable on a payment to a departing tenant (the seller) on an assignment or termination of a lease for consideration if the seller has opted to tax, unless: • the option is disapplied because of the type of property or its intended use (see Practice Note: Option to tax—disapplication for residential and other property) • the option is disapplied under anti-avoidance rules (see Practice Note: Option to tax—disapplication under anti-avoidance rules), or • it is a VAT-free transfer of a going concern (TOGC) (see Practice Note: Transfers of a going concern involving land and buildings) If the seller has not opted to...

Discover our 21 Practice Notes on Mesne profits

Particulars of claim for forfeiture for breach (other than rent arrears)

Particulars of claim for forfeiture for breach (other than rent arrears) 1 The Claimant is the [freehold OR leasehold] owner of the premises known as [insert description of premises] (‘Premises’) and is entitled to possession of the Premises. The Defendant is the tenant of the Premises. 2 By a lease dated [insert date] between [insert landlord name] and [insert tenant name][ and [insert guarantor name]] (‘Lease’), the Premises were let for a term of [insert term eg 5 years] from [insert term commencement date] at an [initial] rent of £[insert amount of annual rent] per annum. The Claimant will refer to the Lease at trial for its full terms and effect. 3 Pursuant to clause [insert clause reference] of the Lease the Defendant covenanted to [insert description of tenant obligation]. 4 In breach of the Lease the Defendant has [insert details of breach of covenant]. 5 On [insert date of service of section 146 notice] the Claimant served upon the Defendant a notice pursuant to section 146...

Particulars of claim for forfeiture for rent arrears

Particulars of claim for forfeiture for rent arrears Particulars of Claim 1 The Claimant is the [freehold OR leasehold] owner of the premises known as [insert description of premises] (‘the Premises’) and is entitled to possession of the Premises. The Defendant is the tenant of the Premises. 2 By a lease dated [insert lease date] between [insert landlord name] and [insert tenant name] [and [insert guarantor name]] (‘the Lease’), the Premises were let for a term of [insert term eg 5 years] from [insert term commencement date] at [an initial] rent of £[insert amount of annual rent] per annum. The Claimant will refer to the Lease at trial for its full terms and effect. 3 By clause [insert clause reference] of the Lease the Defendant covenanted to pay rent at a rate of [insert annual rent] per year [in equal quarterly instalments on the usual quarter days]. 4 Clause [insert clause reference] of the Lease provided that in the event that rent is in arrears...

Dive into our 3 Precedents related to Mesne profits

Where a possession order has been granted and the tenants have remained in the property past the possession date, when the tenants provide non earmarked sums equal to the standard ‘rent’ payments, can the landlord accept these sums or should this be returned to the tenants? Furthermore, can the landlord choose to attribute these funds to the costs sums ordered and existing rental arrears?

Where a possession order has been granted and the tenants have remained in the property past the possession date, when the tenants provide non earmarked sums equal to the standard ‘rent’ payments, can the landlord accept these sums or should this be returned to the tenants? Furthermore, can the landlord choose to attribute these funds to the costs sums ordered and existing rental arrears? After a tenant has been ordered to deliver up possession of a property, they become liable to pay mesne profits in return for continued use and occupation until such time as they give vacant possession. Mesne profits are usually calculated based on the level of the rent that was payable under the former tenancy (see Swordheath Properties Ltd v Tabet) but there might be grounds for the landlord to seek a higher figure if the landlord considers that the market rental value for the property is greater than the level of rent that was being paid (Clifton Securities Ltd v Huntley). A tenant can choose...

Are there any specific cases where a tenant holding over after the termination of a tenancy was held to be pursuant to a periodic tenancy or a tenancy at will?

Are there any specific cases where a tenant holding over after the termination of a tenancy was held to be pursuant to a periodic tenancy or a tenancy at will? We refer you to the following cases which you may find useful for your purposes: • Barclays Wealth Trustees (Jersey) Limited v Erimus Housing Limited: this concerned tenants who were holding over and who did not have security of tenure. A tenant who holds over at the end of their lease is a tenant on sufferance until the landlord consents to the tenant's possession. With consent, the tenant becomes at least a tenant at will. If the tenant at will continues to pay rent, even a rent previously reserved at an annual rate, that is not inconsistent with a tenancy at will. Specifically, 'the payment of rent gives rise to no presumption of a periodic tenancy' • Longrigg, Burrough and Trounson v Smith: it was held that acceptance of rent after the lease of a shop expired...

See the 20 Q&As about Mesne profits

Restructuring & Insolvency weekly highlights—5 December 2024

This week's edition of Restructuring & Insolvency weekly highlights includes: the need for expert evidence in Part 26A restructuring plans to comply with CPR 35 (Re Chaptre Finance Plc), an analysis of applications to set aside default judgment in insolvency proceedings (Scenic International Group Ltd (in provisional liquidation) v Adenaike), an analysis of successful fraudulent trading and other claims (London Capital & Finance v Thomson), plus a round-up of other news and cases for restructuring and insolvency professionals.

Property weekly highlights—5 December 2024

This week's edition of Property weekly highlights includes: guidance on high street rental auctions, a consultation on permitted insurance fees for landlords and freeholders, a remediation acceleration plan for unsafe cladding, a consultation on the EPC regime and cases on tenant fees, restrictive covenants and the calculation of mesne profits following an unlawful eviction in the context of insolvency.

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