The pubco has issued legal proceedings over Mountford’s rent-review terms — Punch wants to increase his rent from £14,211.84pa to £24,000pa. A document of proceedings has been issued to Mountford detailing a new tenancy for a term of five years and rent of £22,000 per annum.
Mountford issued a section 26 against Punch on 16 November 2011 asking the company to consider a new lease and rent from June 2012. This notice gives business tenants security of tenure and the right to renew the tenancy when it comes to an end. However, the section 26 means that either side needs to issue court proceedings to resolve the matter.