Land: Lease liability of covenants

Question 1

When is a lease a new lease vs an old lease?

Answer 1

New Lease
- been granted after from end of 1995

Old Lease
- granted before start of 1996

Question 2

What are the rules of old leases?

Answer 2

Original landlord and tenant remain liable to each other for entire lease period
- even if lease is assigned

Question 3

Rules of new leases

Answer 3

Post 1995

Tenants
- automatically released
- may be required to enter AGA as condition of landlord giving consent to an assignment (more likely if commercial)

Landlords
- not automatically released
- can be released by tenant or apply to courts for release

Question 4

Under new leases if a subsequent tenant is in default who can the landlord sue?

Answer 4

The subsequent tenant only

Question 5

Under new leases if a subsequent tenant is in default, but original tenant has an AGA, who can the landlord sue?

Answer 5

Can sue either
- original tentant
- subsequent tenant

However by suing original tenant can only get damages as they are no longer in possession of land

Question 6

Under old least if subsequent tenant is in default who can landlord sue?

Answer 6

Either
- subsequent tenant - privity of estate
- original tenant - privity of contract

Question 7

Can landlord enforce convent ants on subtenants?

Answer 7

No (no privity of estate or contract)

But tenant usually liable of their sub-tenant
- so will likely incorporate same covenants into sublease

Question 8

What happens if tenant assigned lease but landlord refuses consent?

Answer 8

If they think it was withheld unreasonably should seek declaration from the court to that end

If court does not agree they will be in breach of covenant

Question 9

What happens to the sublease if the headless is assigned?

Answer 9

• sublease will remain
• incoming tenant of headless will be bound by covenants in headless

Question 10

How can a lease be terminated?

Answer 10

Expired of fixed period

Termination by notice
- for periodic tenancy
- if joint landlords/tenants either one can give notice

Surrender
- mutual agreement that tenant gives up possession to landlord
- must be by deed

Merger
- mutual agreement hat landlord will transfer reversion to tenant
- must be by deed

Forfeiture

Frustration

Question 11

What happens to sublease if headless is terminated

Answer 11

If by expiry, notice or forfeiture
- sublease ends

Surrender or Merger
- continues on same terms