Grant Of Lease And Underlease

Question 1

What’s are the options for the term of the lease ?

Answer 1

• fixed amount
• periodic tenancy indefinitely from one period to another
• tenancy at will (terminated at any time)

Question 2

What are the types of leasehold covenants ?

Answer 2

Absolute covenants

Qualified covenants

Fully qualified covenants

Question 3

What is an absolute covenant ?

Answer 3

Tenant cannot carry out stated action

Question 4

What is a qualified covenant ?

Answer 4

Can carry out action with landlords consent

Question 5

What is a fully qualified covenant ?

Answer 5

Requires landlords consent but consent cannot be reasonably withheld by the landlord

Question 6

What case law was established in post office v Aquarius properties ?

Answer 6

Before tenant can be in breach of covenant to repair the physical condition of the property must have deteriorated from previous condition

Question 7

Difference between headlease and Underlease ?

Answer 7

Underlease is likely to be much more restrictive as it it is likely that headlease requires Underlease to mirror its terms

Question 8

If headlease is registered with absolute leasehold title what does that mean ?

Answer 8

No need to see title of freehold, although headlease itself must be reviewed

Question 9

What if the headlease is unregistered ?

Answer 9

Under tenant is entitled to call for the headlease and subsequent assignments for last 15 years

Question 10

What is a licence to underlet ?

Answer 10

Three party document where head-landlord gives consent to head-tenant to Underlet to under-tenant

Will usually condition that under-tenant enter into direct covenant with head-landlord to perform covenants in underlease and headlease

Question 11

What is true for a lease of 7 years or less ?

Answer 11

Such a lease will take effect as an overriding interest under LRA 2002

Question 12

What is a self-help/[Jervis v Harris] clause ?

Answer 12

Allows landlord to recover cost of repairs as debt and not damage claim.

This clause allows landlords to enter property to check compliance with tenants repair covenant

Question 13

Who does the 1954 act apply to ?

Answer 13

• A tenancy (lease not licence)
• occupied for business purposes

Question 14

What are the exclusions?

Answer 14

• Tenancies at will
• fixed term not exceeding 6 months
• fixed term that has contracted out of 1954 act

Question 15

What is the effect of the act ?

Answer 15

If afforded protection then tenancy cannot end unless in accordance with the act:

• s 25 notice
• s 26 tenant request
• forfeiture
• Surrender