Contents of a lease

Question 1

Absolute Covenant

Answer 1

Absolutely cannot carry out action
Unless one off consent/permenant variation of lease

Question 2

Qualified Covenant

Answer 2

Landlord consent obtained first

Question 3

Fully Qualified Covenant

Answer 3

Landlords consent, but this cannot be unreasonably held

Question 4

In terms of insurance, if there is a storm causing flooding , who is responsible for reinstating the property?

Answer 4

• Landlord covenants to reinstate to its ‘full reinstatement value’
• Tenant pays ‘insurance rent’
• Landlord uses insurance money to reinstate the property as it is under an ‘insured risk’

Question 5

If the property is unfit for occupation, as a result of damage by a risk the landlord is obliged to insure, then what happens to rent?

Answer 5

It is suspended for 3 years or earlier reinstatement.

Question 6

When will rent suspension not apply

Answer 6

When the tenant themselves have caused the damage

Question 7

On completion, regarding rent, what should be given from the tenant to the landlord?

Answer 7

On completion, the tenant will give the landlord the counterpart lease executed by the tenant. The lease is completed on a date between two of the usual quarter days (25 December and 25 March). The tenant will, therefore give the landlord an apportioned sum representing the rent payable in advance under the lease.

Question 8

What should this title be registered as?
10 year lease of office, deed, unregistered freehold.

Answer 8

Good leasehold class of title

Question 9

When should the mortgage of a property be discharged?

Answer 9

• Sellers solicitor should provide an undertaking to discharge the mortgage immediately on completion

Question 10

When does stamp duty land tax need to be paid if there is a purchase price of £2,500,000 plut VAT, and a 10% deposit already paid?

Answer 10

The company will pay SLDT on the purchase price PLUS VAT within 14 days of completion