What Are Mesne Profits?
Damages (or quasi-contractual claim for use and occupation) for unauthorized occupation of land after the tenancy has ended. Not rent — rent requires a subsisting tenancy. Trespass basis: former tenant remaining after tenancy ends is a trespasser; mesne profits are compensatory damages for that trespass. Assessed at open market rental value for the period of unauthorized occupation — may be more or less than the expired contractual rent. Each day of unauthorized occupation gives a fresh cause of action; mesne profits accrue daily until possession is recovered.
When Do Mesne Profits Arise?
Residential holdover: tenant remaining after fixed-term expiry and valid s.21/possession order — mesne profits from date order takes effect. Commercial holdover (non-LTA 1954): commercial tenant without LTA 1954 protection holding over after contractual expiry — mesne profits at open market rate. Post-forfeiture: commercial tenant remaining during relief from forfeiture application — mesne profits accrue during this period. Squatters: trespassers; landowner recovering possession can claim mesne profits for period of unauthorized occupation.
Quantum
Open market rental value for the period of unauthorized occupation — independent RICS valuation evidence for high-value disputes. Market above contract rent: mesne profits at higher market rate. Market below contract rent: mesne profits limited to lower open market rate. Daily rate: county court possession orders typically include daily mesne profits rate from date of order until vacant possession. Landlord cannot use mesne profits to recover above-market damages.
LTA 1954 and Limitation
LTA 1954 protection: commercial tenant applying for new tenancy under LTA 1954 has statutory right to remain — not a trespasser; mesne profits do not arise during statutory continuation. Interim rent (LTA 1954 s.24A): landlord applies for interim rent assessed at open market value during continuation — different mechanism from mesne profits. Contracted-out leases: no LTA 1954 continuation rights; tenant holding over is immediately in mesne profits territory. Limitation (LA 1980 s.5): 6 years from each daily accrual.
Claims Process and Scotland
County court possession claim: include mesne profits claim with daily rate in particulars of claim — granted alongside possession order. Post-order enforcement: if defendant does not vacate, enforce via warrant of possession; accruing mesne profits recoverable as judgment debt. Scotland — violent profits: Scottish equivalent; historically double market rent as punitive measure for unauthorized retention; modern Scots courts apply open market value baseline. Take specialist Scottish legal advice for Scottish possession disputes.