6. Leases 2 Flashcards
Which document allows assignment
licence to assign
key issues to be checked when assigning a lease
- is consent required from landlord
- ## length of the residue of the term
what might a landlord require
references on the prospective buyer,ensuring they are solvent and trustworthy
sources of referees
current landlord
buyer’s bankers
buyers employer
professional person
person/company with whom the buyer regularly trades
3 years audited accounts in case of a co or self employed person
what is a surety
a guarantor
AGA
where buyer guarantees performance of tenant’s covenants by the buyer
when may a landlord require a seller to enter into an AGA
prior to granting consent
does landlord have to be reasonable in requesting an AGA
no- unless the lease did not provide for an AGA
can a tenant impose incoming assignees obligations onto a surety
no good harvest partnership v centaur services
alienation
assignment/parting with possession of the property
what happens where there is an absolute covenant against alienation in the lease (the tenant shall not assign or part with possession of the property)
any assignment is a breach and can lead to forfeiture of the lease
what restrictions are imposed on absolute covenants
not subject to any statutory restrictions, bar the Equality Act 2010
what is a qualified covenant?
permits the tenant to assign, provided that the seller tenant obtains the prior consent of the landlord to the dealing
s19 LTA 1927
non-excludable proviso that the landlord cannot unreasonably withhold consent
procedure for qualified covenant
- L served written notice for consent (must give consent within erasonable time)
- L to serve written notice of their decision on the tenant, stating any conditions (if any)or if the consent is refused, stating reasons for withholding consent
What happens if a landlord breaches his duty under the 1988 act to give written notice
breach of statutory duty, giving a remedy to tenant in damages
when are landlords obligations under 1988 act triggered
upon proper service of the written application for consent
EON UK v Gilesports
landlords statutory duties were not triggered, as application for consent was made via email- irrelevant that the landlord received service
N01 West India Quay
tenants request to assign was not validly served, as it had been sent to an addressed provided by landlord in the sales pack, not to registered office as specified in notices clause
what can the landlord demand in return for consent to assign
a premium
what can the landlord demand of the tenant regarding preparation of the deed of consent
landlord solicitors reasonable charges
SC 8.3 what should a seller do when applying for consent
Seller must apply for consent at their own expense and to use all reasonable efforts to obtain such consent
up to which point may either party rescind the contract
if consent has not been given 3 working daysbefore completion date/or if by that time, consent has been given subject to a condition to which the buyer reasonably objects
what does SCPC 11.3.3 require of the seller
seller must enter into an aga