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Landlord & Tenant: Leasehold Covenants Terminology Characteristics of a lease Leasehold covenants Enforceability of leasehold covenants.

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Presentation on theme: "Landlord & Tenant: Leasehold Covenants Terminology Characteristics of a lease Leasehold covenants Enforceability of leasehold covenants."— Presentation transcript:

1 Landlord & Tenant: Leasehold Covenants Terminology Characteristics of a lease Leasehold covenants Enforceability of leasehold covenants

2 Landlord & Tenant Terminology –‘Term of years absolute’ –Tenancy/lease –Landlord/lessor & tenant/lessee –Freehold reversion –Assignment –Sub-lease

3 Landlord & Tenant Characteristics of a lease: –Exclusive possession Street v Mountford [1985]AC 809 –Certain duration Lace v Chantler [1944] KB 368 Prudential Assurance Co Ltd v London Residuary Body [1992] 2 AC 386 –Rent? S.205 Law of Property Act 1925 Skipton Building Society v Clayton (1993) 66 P & CR 223

4 Landlord & Tenant Legal leases –Express grant (s.52(1) LPA) –Exceptions (s.52(2)(d) & s.54(2) LPA) –Implied Grant (periodic tenancy) Equitable leases –No formal grant (deed) –Grant not comply with formality requirements (s.1 LP (MP) Act 1989) –Walsh v Lonsdale (1882) 21 ChD 9

5 Landlord & Tenant Legal Lease –Registered Land Register over 7 years Less 7 years: overriding interest? Schedules 1 & 3 LRA 2002 –Unregistered Land ‘legal rights bind the world’

6 Landlord & Tenant Equitable Lease –Registered Land Sch 1 & 3 LRA 2002? Notice on register –Unregistered Land Class C (iv) Land Charge (estate contract)

7 Landlord & Tenant Type of lease –Fixed term lease –Periodic lease (express/implied) –Tenancy at sufferance –Tenancy at will

8 Leasehold Covenants Landlord Covenants –Quiet enjoyment –Not to derogate from grant Aldin v Latimer Clark, Muirhead & Co [1894] 2 Ch 437 –Repair (s.11 L&T Act 1985) Tenant Covenants –Pay rent –Repair –Not to assign/sub-let (qualified/absolute)

9 Enforceability of Leasehold Covenants: pre 1.1.1996 Original parties –‘privity of contract’ & ‘privity of estate’ –Continuing liability (s.79 LPA) –Indemnity covenant Unreg land: s.77 LPA Reg land: s.134 LRA 2002 –Rule in Moule v Garrett (1872) LR 7

10 Enforceability of Leasehold Covenants: pre 1.1.1996 Successors in title –Assignment of lease to new tenant ‘privity of estate’ Covenant ‘touch & concern’ the land? (Spencer’s case) –P A Swift Investments v Combined English Stores Group [1989] AC 632 –Assignment of reversion to new landlord Covenants that ‘refer to the subject matter of the lease’ (s.141 & 142 LPA)

11 Enforceability of Leasehold Covenants: post 1.1.1996 Original parties –Tenant S.5 L&T (Covenants) Act 1995 S.11 ‘excluded assignment’ S.16 AGA –Landlord S.6 (not automatic)

12 Enforceability of Leasehold Covenants: post 1.1.1996 Successors in title –S.3 ‘benefit & burden of all ‘landlord’ & ‘tenant’ covenants pass on assignment –‘landlord’ covenants –‘tenant’ covenants

13 Position of Sub-Tenant L T ST

14 Remedies Landlord remedies –Non payment of rent Sue for rent Distress Forfeiture –Forfeiture clause in lease? –Notice –Re-entry (s.6 Criminal Law Act 1977) –Waiver? –Relief from forfeiture?

15 Remedies Landlord remedies –Other breaches Damages (s.18 Landlord & tenant Act 1927) Specific Performance (Rainbow Estates Ltd v Tokenhold Properties Ltd) [1999] Ch 64 Leasehold Properties (Repairs) Act 1938 Forfeiture –S.146 notice –Forfeiture clause –Waiver? (continuing breach) –Relief from forfeiture (s.146(2) )

16 Remedies S. 146 notice: –Rugby School (Governors) v Tannahill [1935] KB 87 –Expert Clothing Service & Sales Ltd v Hillgate House Ltd [1986] 1 Ch 340

17 Remedies Tenant remedies –Harassment & eviction (s.1 PFE Act 1977) –Landlord failure to repair Deduction from rent Specific performance (s.17 L&T Act 1985)

18 Termination Expiry (security of tenure/right renew) Notice (fixed term/periodic) Surrender Merger Forfeiture


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