Useful clarification this week that a leasehold of horizontally divided premises of a ground floor in a building did not grant an implied right to develop a basement below.

This is a helpful decision for landlords who are seeing more applications from tenants to dig down on their properties or develop upwards in relation to development above roof terraces - for example, in relation to installation of communications or solar energy equipment.

Most older leases do not expressly deal with subsurface or airspace rights but best modern drafting includes these types of provisions. Addressing this issue will be prudent for build to rent investors as well residential landlords in view of proposals for longer term tenancies.