Covenants in Leases Flashcards
With whom does the privity of estate exist?
Between a current landlord and tenant
What does privity of contract mean in leases?
All terms can be enforced by original landlord against original tenant and vice versa
Who is a reversioner?
New freeholder/landlord
Who is an assignee?
New tenant
Which leases are considered ‘old leases’?
Created before 1 January 1996
How does liability for covenants in old leases work?
Original landlord and tenant are liable for full duration of the term
What was the effect of the LCTA 1995 in respect of enforcing covenants?
Abolished privity of contract for new leases
How is the tenant released from obligations upon assignment?
Automatically - unless breached alienation covenant
How is the landlord released from obligations upon assignment of reversion?
Must apply to tenant and if they refuse, apply to court
When will benefits and burdens of covenants not pass to a third party (new assignee/reversioner)?
When they are expressed to be personal to any person
When may a landlord be able to sue an outgoing tenant for a current tenant’s breach?
Authorised guarantee agreement
What remedies can a landlord obtain if suing an outgoing tenant under an AGA?
Damages only
How can an assignor protect themselves from being sued under an AGA?
Enter into express indemnity covenant
What are the restrospective provisions of the LCTA 1995?
- tenant default notice
- liability for variations
- overriding leases
What is the tenant default notice provision of the LCTA?
Where landlord wishes to sue foermer tenant under lease/fixd charge, must serve notice within 6 months of charge becoming due
What is the consequence of a landlord not following the tenant default notice provision?
They are unable to make claim
What is a fixed charge for the purposes of the tenant default notice provision?
rent arrears, service charge, insurance premium
What is the liability for variations provision of the LCTA?
former tenants/gurantors not liable to pay additional amounts owed in respect of variations made to lease after assignment which could not have anticipated
What is the overriding lease provision of the LCTA?
Former tenant who is made to pay rent/fixed charge can request overriding lease, making them the immediate landlord of defaulting tenant
When can a head landlord enforce covenants against a subtenant?
Restrictive covenants in new leases
