2.6 Leases - Breach of Covenant Remedies

Question 1

What is required for action in debt?

Answer 1

Claim in court

Obtain judgment for repayment of arrears (rent)

Within 6 years

Depends on ability to enforce debt

Question 2

What is required for forfeiture of leases?

Answer 2

Breach rent covenant

• NO s. 146 notice
• Commercial leases => Re-entry (peaceable)
• Other leases => Court proceedings

Breach other covenant

• S. 146 notice > T (allows T to avoid forfeiture)
• UNLESS capable of remedy > Allow time for remedy
• Relief from forfeiture => Tenants/Subtenants/Lenders

Question 3

What is required for rent recovery under Commercial Rent Arrears Recovery (CRAR)?

Answer 3

1) Written lease
2) Arrears > 7 days old
3) Basic rent

4) Bailiff
- Serves 7-day notice of enforcement
- Enter property => Seize goods
- 7-day notice of sale => Sell goods

NOT mixed use property

=> L takes goods of value to arrears => Replace distress

Question 4

What is required for using rent deposit?

Answer 4

1) Landlord obtained rent deposit from lease grant/assignment

2) Landlord to reduce monies from rent deposit
- Based on terms of lease

3) Tenant may have to top up deposit

Question 5

What is required for specific performance?

Answer 5

T pays rent

T performs covenants

Question 6

What is required for damages?

Answer 6

Compensation => L’s losses

Repairs (statutory restrictions)

• s. 18 LTA 1927 > Diminution in value of reversion only
• s. 1 LPA 1938 > T opposes claim + Lease > 7 years + At least 3 years left on lease => Court consent required

Question 7

What is the rule under [Jervis v Harris] clause?

Answer 7

L can enter property

• Repairs > Charge T
• Claim costs (damages)

Avoids statutory restrictions
- Re damages claims only