Alienation Flashcards
when does privity of estate end?
only lasts for the period the lease is vested in the tenant.
old leases and liability of orginal landlord and tenant?
continues for full duration of the lease.
assignee would have to make direct covenant to landlord to be bound.
new leases and liability?
abolishes privity of contract for new leases.
no automatic release for landlord- must apply to court.
authorised guarantee agreement to guarantee obligations of their immediate successor for assignment.
asking for consent to assign lease?
landlord and tenants act coverts a qualified covenant into a fully qualified covenant meaning the landlord must act reasonably if deciding to withhold consent.
should respond to request within 28 days.
reasonable if landlord has justifiable concerns about the assignees ability to pay rent or a newly incorporated company who cannot produce accounts.
what are the pre-exchange inquiries to be taken out for assignment/underletting?
CPSE 1 and CPSE4.
what are the requirements for underletting?
must be for a shorter term than the lease itself.
Qualified covenant gets automatically converted to fully qualified.
Privity of contract and Privity of estate DOES NOT EXIST for landlord and undertenant.
Only way landlord can enforce covenants is through a direct one.
what is an authorised guarantee agreement?
needed for new lease.
outgoing tenant has to guarantee the obligations of the assignee.
is the tenant required to pay the landlord’s professional costs with assignment?
yes.
what is the process for underletting?
- if consent is needed- formal application for consent in writing.
- Landlord drafts licence to underlet. entered into by all parties.
- Tenant drafts underlease- entered into by tenant and person who is underletting property.
if there is an absolute covenant against underletting or assignment, does the landlord have to give consent?
no, they have complete discretion whether to consent to the proposed underletting and is under no obligation to act reasonably.
