10- Leasehold Covenants

Question 1

Burden of tenant’s covenants and benefit of landlord’s covenants for the TENANT: Spencer’s Case

Answer 1

Burden of tenant’s covenants and benefit of landlord!s covenants pass to incoming tenant if covenant “touch and concern” the land

Question 2

Benefit of tenant’s covenants and burden of landlord’s covenants for LANDLORD: S141 and 142 LPA

Answer 2

S141 LPA 1925- benefit of tenant’s covenants passes

S142 LPA 1925- burden of landlord’s covenants passes if covenants have “reference to the subject-matter of the lease”

Question 3

Leases after 1 Jan 1996: LT(C)A 1995

Answer 3

Can’t come back to original parties for leasehold covenants

Question 4

Leases before 1 Jan 1996

Answer 4

‘Original tenant’s liability

Question 5

Enforceability of covenants under new leases governed by LT(C)A 1995- TENANT:

S3(2)(a) and S3(6)

Answer 5

BURDEN of TENANT’S covenants passes to the incoming tenant under s3(2)(a)

Unless expressed to be personal s3(6)

Question 6

Enforceability of covenants under new leases governed by LT(C)A 1995- TENANT:

Release on assignment: S5(2)(a)

Answer 6

If the tenant assigns the whole of the premises he is released from the tenant covenants of the tenancy

Question 7

Enforceability of covenants under new leases governed by LT(C)A 1995- TENANT:

S3(2)(b) and s3(6)

Answer 7

BENEFIT of LANDLORD’S covenants passes to the incoming tenant under s3(2)(b)

Unless expressed to be personal: s3(6).

Question 8

Enforceability of covenants under new leases governed by LT(C)A 1995- LANDLORD

S3(3)(b) and S3(6)

Answer 8

BENEFIT of the TENANT’S covenants passes to the incoming landlord under s3(3)(b)

unless expressed to be personal: s3(6).

Question 9

Enforceability of covenants under new leases governed by LT(C)A 1995- LANDLORD:

S3(3)(a) and S3(6)

Answer 9

BURDEN of the LANDLORD’S covenants passes to the incoming landlord under s3(3)(a)

unless expressed to be personal: s3(6).

Question 10

Mitigating provisions for landlords of new leases of commercial premises: S19(1A-1E)

Answer 10

Circumstances and conditions for assignment which if not met means landlord can withhold consent for assignment —> greater control over who can take hold of lease

Question 11

Mitigating provisions for landlords of new leases of commercial premises: S16 LT(C)A 1995

Answer 11

Authorised Guarantee Agreements (AGA)

• Landlord able to require outgoing tenant to guarantee that immediate successor will observe and perform covenants under lease
• Must be inserted in lease from the start so tenant knows what will be expected in future
• Overrides statutory provisions (overriding interest)

Question 12

Remedies available to a LANDLORD for TENANT’S BREACH of covenant: S17 notice

Answer 12

Suing the original/ former tenant for debt (if created on/ before 1 Jan 1996)

Question 13

Remedies available to a TENANT for LANDLORD’S BREACH of covenant

Self-help: Lee Parker v Izzet

Answer 13

If a landlord fails to discharge his repairing obligations, the tenant may follow a strict procedure and do the repairs themselves and deduct the cost from their rent payments

Question 14

Remedies available to a tenant for landlord’s breach of covenant

Specific performance: S11 LTA 1925

Answer 14

Repairing obligations in short leases for landlords

Question 15

Remedies available to a tenant for landlord’s breach of covenant

Specific performance: S11(1) LTA 1925

Answer 15

(a) structure and exterior (drains, gutters and external pipes included)
(b) installations for supply of gas, water, electricity and sanitation (includes basins, sinks, baths etc)
(c) installations for space heating and heating water