Hargrove: Case Strategy Analysis

You completed the first interview with Anna Hargrove yesterday. Mark Davenport has asked for your strategic analysis. The full picture now includes: (1) Anna signed the 10-year FRI lease in March 2025 on behalf of Hargrove Bistro Ltd. She did NOT give a personal guarantee. The rent is £108,000 per year, paid quarterly in advance. (2) Before signing, Cavendish Properties Ltd's letting agent had assured Anna in writing (an email dated 12 February 2025) that the premises were 'in fully operational condition with all major building services functioning'. Anna relied on this and did not commission a survey. (3) The damp, heating, and electrical problems were not disclosed and are not visible on casual inspection. The damp is structural — caused by a defective DPC. (4) The lease contains a 'demised premises' definition that includes all interior surfaces. The landlord's covenants in the lease include keeping the structure and exterior in repair. The tenant's covenants include the interior repair and to keep the premises 'in good and substantial repair'. (5) The landlord has served a s146 LPA 1925 notice for arrears of rent (which is technically incorrect — s146 doesn't apply to rent — but the landlord's threat to forfeit remains). (6) The lease is NOT contracted out of LTA 1954. Mark wants your structured analysis covering: (i) causes of action available to the company; (ii) defences to forfeiture; (iii) likely outcomes; (iv) strategic options. Send memo by 5pm.