Landlord's Remedies for Breach of Lease

Question 1

What are the landlord’s remedies for breach of rent covenant?

Answer 1

1. Action for debt
2. Injunction
3. Commercial Rent Arrears Recovery
4. Forfeiture

Question 2

What are the landlord’s remedies for breach of non-rent covenant?

Answer 2

1. Forfeiture
2. Damages
3. Specific Performance
4. Injunction

Question 3

What are the specific remedies for breach of repair covenant?

Answer 3

1. Forfeiture
2. Harris v Jervis clause
3. Damages

Question 4

What is an action for debt?

Answer 4

• Can recover up to 6 years’ worth of rent arrears
• Not that useful as tenant usually does not have the money
• Definition of rent is wide and includes = service charge, insurance rent and rent.

Question 5

How does the rent guarantor and rent deposit work?

Answer 5

The landlord can use these to pay for repairs, reimburse itself for rent unpaid; however, deposit would then need to be topped up by the tenant.

Question 6

What is CRAR and what is the procedure?

Answer 6

CRAR is commercial rent arrears recovery. It allows the landlord to recover a minimum of 7 days’ of the PRINCIPAL rent.
It is only for commercial premises, the lease must not have been forfeited and it is a self-help remedy.

Procedure
* Landlord appoints enforcement agent with certificate from court or police officer
* 7 clear days’ notice of intention to enter (excl. Sundays and bank hols)
* Amount of debt + how to repay + power + contact details fo agent
* If notice expires without repayment, agent can enter + take control of goods up to value of debt
* Landlord serves further 7 days clear notice of intention to sell goods.

Question 7

What is the procedure for claiming damages for breach of repair covenant?

Answer 7

The Landlord must serve a s.146 (forfeiture) notice on the tenant and, if the tenancy is for a term of over 7 years with 3 still to run, inform the tenant of their right to 28 days to serve a counternotice opposing this. If the tenant does so, the Landlord then has to apply to court.

Damages = loss of value to property NOT cost of repairs. Very inadequate remedy.

Question 8

What is a Jervis v Harris clause?

Answer 8

It gives the landlord the right to enter, carry out the repairs and recover the costs from the tenant in an action for debt. There is no need for a s.146 notice and no right of the tenant to serve a counternotice. Very effective remedy.

Question 9

What is the format of a Jervis v Harris Clause?

Answer 9

“The costs incurred by the landlord in carrying out any works pursuant to this clause (and any professional fees and any VAT in respect of thsoe costs) shall be a debt due from the Tenant to the Landlord and payable on demand”.