When is a notice not a notice?

The Problem
Your landlord has served a Section 25 Notice on you ending your lease. You have served a counternotice protecting your lease and now must apply to the court for a new tenancy. How much rent should you specify for the new lease?

The Law
In a case before the Court of Appeal in 1999 (Cadogan v. Morris) a tenant specified a nominal premium in a Notice. The case concerned the renewal of a residential lease but the Court decided that the Notice was invalid as it did not quote a genuine premium.

The Solution
It is conceivable that the courts could apply the same principles to notices and applications for commercial leases under the Landlord and Tenant Act 1954. Therefore, both landlords and tenants should specify sensible rents to avoid the other party claiming the notice or application is invalid.