Land V Leasehold Covenants

Question 1

Cut off date for old lease and new lease

Answer 1

1 Jan 1996

Question 2

3 important must-have covenants for a lease covenant

3 implied terms

Answer 2

Express covenant:
rent; use and not to assign/sublet (alienation)

Implied terms:
Quiet enjoyment
Protection of eviction
Repairs

Question 3

Additional provisions for rules on assignment and sublease of lease

(consent)

Answer 3

s. 19 LTA: the landlord cannot unreasonably withhold consent
s. 1 LTA the land must give an answer to the request within a reasonable time
s. 22 LT(C)A 1995 - for new leases (after 1 Jan 1996) the landlord is entitled to require the tenant to enter into an AGA on assignment

Question 4

Meaning of quiet enjoyment

Answer 4

Tenant protected from interference with his possession and enjoyment of property by the landlord or someone claiming title through the landlord (Kenny v Preen)

Regular Excessive noise - but doesn’t apply to things done before the grant of tenancy (Southwak LBC v Mills)

Question 5

Acts that are forbidden under the Protection from Eviction Act

(2)

Answer 5

s. 1(2) unlawful for the landlord to deprive the tenant of occupation if does so without belief/reasonable cause to believe the tenant ceased to live there
s. 1(3) it is only an offence for the landlord to attempt to interfere with the tenant’s peace/comfort if the act is done with the intention of causing the tenant to give up residence

Question 6

Rules on landlord’s repair responsibilities

Answer 6

s.11 LTA 1985 - the landlord must keep in good repair and working order for:
structure/exterior of the dwelling house
water, gas, electricity, sanitation installations; and
heating and water heating

Question 7

Case law on landlord’s repair responsibilities

O’Brien v Robinson
Quick v Taff Ely BC
Warren v Keen

Answer 7

O’Brien v Robinson: to repair, the landlord must be notified
Quick v Taff Ely BC (must be genuine disrepair, not just inconvenience)
Warren v Keen: tenants obliged to do reasonable jobs of repair

Question 8

Meaning of current landlord and current tenant for
old lease
new lease

Answer 8

Old Lease: the current landlord has the benefit of the tenant’s covenant (s.141 LPA) and the burden of original covenants (s.142 LPA) provided that the covenants have ‘reference to the subject matter of the lease’

The current tenant has the benefit of the landlord’s covenants and burden of the tenant’s covenant that touch and concern the land (spencer’s case)

New Lease: the current landlord has the benefit of the tenant’s covenant (s.3(3)(b)) and the burden of original covenants (s.3(3)(a)) provided that they are not expressed as personal

The current tenant has the benefit of the landlord’s covenants (s.3(2)(b)) and burden of the tenant’s covenant (s.3(2)(a)) that they are not expressed as personal

Question 9

For old leases, touch and concern the land means:

Answer 9

P&A swift investments v combined English stores group plc

covenant benefits landlord/tenant only while they own the land;

covenant affects the nature, quality, mode of use and value of the land

covenant is not expressed as personal

all the above are satisfied and covenants to pay money if the covenant is connected with something to be done on that land

Question 10

For an old lease, the burden of lease lies with whom if the lease is assigned/sublet?

Answer 10

Under privity of contract, the burden for duration of lease continues even the tenant reassigns

Question 11

If the subtenant defaults on rent on an old lease, what can the current landlord do to recover rents in arrears?

Answer 11

the current landlord can serve notice and seek to recovers missed rents on lessee (not the subtenants) if 6 months of fixed charge (e.g. rents) becoming owed to the landlord by the subsequent tenant.

Moule v Garret - if the lessee settles the current tenant’s debt, he can seek to recover the amount he has paid from the person who is in breach

For an old lease, an indemnity covenant is implied under s.77 LPA (unreg) and sch 12 para 20 LRA (Reg) so lessee can always have right to recover arrears settled on behalf of the subtenant.

Question 12

For a new lease, the burden of lease lies with whom if the lease is assigned/sublet from the LANDLORD?

Answer 12

Incoming landlord

On assignment/sale, outgoing landlord can ask the lease to be released (s.6(2)(a) LT(C)A)

Question 13

If the subtenant defaults on rent on a new lease, what can the current landlord do to recover rents in arrears?

Answer 13

current landlord/lessee can sue:

subtenant who has given an AGA
the current tenant

if the landlord/lessee is suing

if the landlord is suing a former tenant for the outstanding payment/services of the current tenant, notice may be served on former tenant within 6 months (S17 LT(C) A)

Question 14

For a new lease, the burden of lease lies with whom if the lease is assigned/sublet from the Lessee/tenant/subtenant?

Answer 14

the lease will be automatically released, assignor cease to benefit from the landlord covenant

The landlord/lessee/tenant/subtenant can mandate that the tenant must guarantee the performance of assignee (AGA)

Moule v Garrett will still be in operation

Question 15

For a commercial lease, what kind of rights does s.22 LT(C)A confer?

Answer 15

the landlord can agree with the tenant that the landlord may withhold consent to an assignment under certain conditions

Question 16

Remedies if tenant breaches covenant to pay rent

Answer 16

Action for debt
Commercial rent arrears recovery
Forfeiture

Question 17

Explain action for debt

Answer 17

s.19 Limitation Act 6 years

if the defendant is a former tenant, notice must be served within 6 months

Question 18

Explain Commercial rent arrears recovery

Answer 18

Sch 12 Tribunals, Courts & Enforcement Act -
Recovery is subject to a minimum amount of arrears, which is seven day’s rent

Enforcement agent serves notice that binds the tenant’s good until debt paid

Question 19

Requirements for the landlord to take forfeiture actions;

Answer 19

a landlord will have a right to forfeit where:
the lease contains a forfeiture clause
the lease is granted subject to a condition that the landlord may forfeit it on the occurrence of some event

Question 20

When an event triggering a forfeiture happens, what are the options for the landlord?

Answer 20

the lease does not end automatically. the landlord can forfeit the lease or affirm it. if the latter course is chosen, the landlord is said to have waived the breach. the decision one made is binding on the landlord.

Question 21

Methods of forfeiture

Answer 21

peaceable reentry - however, to dwelling houses under s,2 Protection from Eviction Act reentry is not allowed without a court order whilst a person is lawfully residing at the premises) * Human Rights Act 1998 implications

start forfeiture proceedings

Question 22

Explain relief from forfeiture

Answer 22

If the landlord seeks to end the lease, the tenant may well seek relief from forfeiture. As long as the tenant acts reasonably swiftly and pays the arrears
of rent and costs, relief will usually be granted. (s.146(2) LPA)

Question 23

The consequence of for violence and threats of violence to obtain possession of the premises

Answer 23

it is a criminal offence under s.6 criminal law act 1977

Question 24

Remedies for other breaches of lease covenant other than rent

(5)

Answer 24

damages: contract law

specific performance: only granted when damages is insufficient

injunction: equitable remedy for restrictive covenant

forfeiture

self help by means of set-off: where landlord fails to perform an obligation, tenant will have the right to carry out repairs themselves and then deduct the cost from the rent payable (Taylor v Beal)

for this to apply the tenant must first have notified the landlord of the need to perform these obligations before resorting to set-off (Lee-Parker v Izzet)