Alternations And Improvements Flashcards
What does it mean if lease is silent on alterations and improvements?
T is free to carry out alterations
Doctrine of waste
T cannot carry out any alterations which would reduce value
Absolute covenant on alterations
Alterations are not permitted. T can seek consent, but LL need not even consider request
Qualified covenant on alterations
Alterations permitted if LL consents
Fully qualified covenant on alterations
LL must act reasonably in deciding to withhold consent
When will qualified covenant on alterations be upgraded to fully qualified covenant
Where alterations constitute improvements
What is a license for alterations
LL consent to alterations documented in a license, stipulating details of works consented to and time limits.
Tenant’s statutory right to carry out improvements
Even if absolute covenant against or consent withheld, T can apply to court for permission after serving notice of intention on LL
When will court grant permission to carry out improvements under tenant’s statutory right?
If improvements
- add value
- are reasonable and suitable to character of property
- will not diminish value of any of LL’s other properties
If LL does not object within 3 months, T can go ahead
Qualifier covenant on user
LL can allow change of use if give consent
Absolute covenant on change of use
Not permitted
Fully qualified covenant on change of use
LL cannot unreasonably withhold consent
If LL consents to change of use, can they charge lump sum or increase rent?
No - unless change of use also requires structural alterations
What does code for leasing business premises say in relation to improvements and alterations
- leases should only restrict alterations/change of us if necessary to protect value of premises or adjoining land if property of LL
- LL must give fully qualified covenant for internal non structural alterations in lease of part
- if T has a lease of whole, they should have ability to carry out internal non structural alterations without having to obtain consent
