Transcript Slide 1

Landlord & Tenant:
Leasehold Covenants
•Terminology
•Characteristics of a lease
•Leasehold covenants
•Enforceability of leasehold
covenants
Landlord & Tenant
• Terminology
– ‘Term of years absolute’
– Tenancy/lease
– Landlord/lessor & tenant/lessee
– Freehold reversion
– Assignment
– Sub-lease
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
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
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’
Landlord & Tenant
• Equitable Lease
– Registered Land
• Sch 1 & 3 LRA 2002?
• Notice on register
– Unregistered Land
• Class C (iv) Land Charge (estate contract)
Landlord & Tenant
• Type of lease
– Fixed term lease
– Periodic lease (express/implied)
– Tenancy at sufferance
– Tenancy at will
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)
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
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)
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)
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
Position of Sub-Tenant
L
T
ST
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?
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) )
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
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)
Termination
• Expiry (security of tenure/right renew)
• Notice (fixed term/periodic)
• Surrender
• Merger
• Forfeiture