London Trocadero (2015) LLP v Picturehouse Cinemas Limited
A recent High Court ruling in London Trocadero (2015) LLP v Picturehouse Cinemas Limited & Others [2025] held that; a lease clause obliging the tenant to pay insurance rent, referring to “premium payable”, did not automatically include broker commission.
In this case, the lease obliged the landlord to insure the Trocadero Centre. The landlord could then recover this cost from the tenants by apportioning the cost and demanding insurance rent under the terms of the leases.
The landlord procured a block insurance policy covering its entire portfolio, including the Trocadero Centre. It negotiated a landlord’s commission (in some cases up to 60%), which increased the gross premium and was passed on to tenants as part of the insurance rent, despite the fact that the commission was reimbursed back to the landlord.
The court held that the commission did not form part of the “premium payable”: The lease obliged the tenant to cover the actual cost of insuring the building. The court held that although commission raised the gross premium, it was rebated to the landlord, and therefore not truly “payable” by the landlord.
The tenant could recover sums paid as landlord commission by way of restitution.
Landlords should review the precise terms of leases, and their insurance arrangements, to ensure compliance. If wrongly charged, tenants may have a claim.
Posted on 06/29/2025 by Ortolan
