Land - Leasehold Covenants

Question 1

(For new leases) Landlord entitled to require the tenant to enter into an AGA on assignment

Answer 1

s.16 LT(C)A 1995

Question 2

The tenant has an implied covenant for quiet enjoyment

Answer 2

Kenny v Preen

Question 3

The landlord must keep the property in reasonable repair

Answer 3

s.11 LTA 1985

Question 4

The landlord must be notified of the need to repair before he can be expected to do so

Answer 4

O’Brien v Robinson

Question 5

What is the original landlord burdened with for old leases?

Answer 5

Burdened for duration of lease (Privity of contract)

Question 6

What is the current landlord burdened with for old leases?

Answer 6

Burdened with original covenants IF they ‘have reference to the subject matter of the lease’

Question 7

What is the old lease landlord synonym for ‘touch and concern’?

Answer 7

Have reference to the subject matter of the lease

Question 8

What is the original tenant burdened with for old leases?

Answer 8

Burdened with the covenant for the duration of the lease

Question 9

What three consideration should be discussed r.e. original tenant liability under old leases?

Answer 9

1- s.17 LT(C)A 1995- Landlord can only recover from the original tenant if he serves notice within 6 months of the breach
2- Moule v Garrett- If the original tenant pays the debt of the tenant in breach, they can recover the amount from the person in breach
3- Original tenant will have indemnity cover implied by statute so can always recover money (sch 12 para 20 LRA- registered) (s.77 LPA- Unregistered)

Question 10

What benefit does the current tenant have under old leases? (+ Authority)

Answer 10

Benefits from the Landlords covenants, provided they touch and concern land (Spencer’s case)

Question 11

What burden does the tenant have under old leases? (+ Authority)

Answer 11

Burden of the tenant covenants that touch and concern land (Spencer’s case)

Question 12

What benefit does the current landlord have under old leases?

Answer 12

Benefit of the landlord covenants that have reference to the subject matter of the lease (s.142 LPA)

Question 13

What Burdens does an original landlord under a new lease have?

Answer 13

None, if released under s6(2)(a) LT(C)A 1995

Question 14

What benefits/ burdens does the current landlord have under a new lease?

Answer 14

s. 3(3)(b)- benefit of tenant covenants, if ‘not expressed as personal’
s. 3(3)(a)- burden of landlord covenants, if ‘not expressed as personal’

Question 15

What burdens does the original tenant have under a new lease?

Answer 15

None (automatically released under s5(2)(a)) UNLESS it is a commercial lease and they have signed an AGA

Question 16

What is s.16 LT(C)A?

Answer 16

In commercial leases, the landlord can force the original tenant to sign an AGA if they want to assign the lease

Question 17

If the original tenant pays the current tenant’s debt, he can recover it from them (Applies to old and new (Via AGA)

Answer 17

Moule v Garrett

Question 18

What benefits/ burdens does the current tenant have under a new lease?

Answer 18

s. 3(2)(b)- benefit of tenant covenants, if ‘not expressed as personal’
s. 3(2)(a)- burden of landlord covenants, if ‘not expressed as personal’

Question 19

What remedies are available if the tenant breaches a covenant to pay rent?

Answer 19

1- Action for debt
2- Commercial rent arrears recovery
3- Forfeiture

Question 20

What are the limits on an action for debt?

Answer 20

1- Claim must be made within 6 years of arrears becoming due (s.19 Limitation Act)
2- If suing a former tenant, notice must be served within 6 months of debt becoming due s.17 LT(C)A 1995

Question 21

What are the limits and what is the effect of commercial rent arrears recovery?

Answer 21

1- Minimum recovery = currently 7 days rent

2- effect = tenants goods bound until debt paid

Question 22

When will the right to forfeit arise?

Answer 22

If specified in the contract

Question 23

What is the process for forfeiture?

Answer 23

1- Landlord makes formal demand for rent
2- Landlord must turn up before sunset on last day rent is due and demand payment before sun sets (Duppa v Mayo)
3- most contracts have a term that means this is not necessary

Question 24

What are the two methods of forfeiture?

Answer 24

1- Peaceable reentry (but not allowed for dwelling houses)

2- Commencing forfeiture proceedings (safer)

Question 25

What remedies are available if a covenant other than rent is breached?

Answer 25

1- Damages
2- Specific performance  (only where damages insufficient)
3- Injunction 
4- Forfeiture
5- Self-help by means of set-off