Lease anatomy Flashcards
What are the typical anatomy elements of a lease?
Parties, date, definitions, interpretation provisions :
- definitions may include premises, insured risks or common parts of a building
Demise and rents
- landlord demises or grants the lease of the premises to the tenant for a specified term in consideration of the rent paid and the covenants entered into
What is a basic rule of a tenant covenant?
Tenant may do all things that an owner of an estate can do unless the lease prohibits such action
Therefore leases are drafted in a prohibitory manner setting out what the tenant cannot do
If there is no mention of an action in a lease then the tenant is free to do it
What is a landlord covenant in a lease?
If the lease is for part of a building the landlord may covenant to provide some services or maintain common areas.
Most common covenant is for quiet enjoyment which is a landlord covenant not to interfere with the tenant’s possession or enjoyment of the property during the term of the lease
Example:
Erection of scaffolding hindering access to the property
What is the proviso, agreements and declarations section in a lease?
Deals with miscalaneous matters such as :
Forefiture
what happens in the event of damage and destruction by insured risks
clauses dealing with the exclusion of security of tenure provisions in the Landlord and Tenants Act
What is a guarantor’s covenant
an individual or company guarantor may also be a party to the lease and will covenant to guarantee payments that must be made under the lease and the performance of any other obligation so that if the tenant defaults the landlord is able to call upon the guarantor
What is in the rights granted and rights excepted and reserved section of the lease?
Rights granted:
Tenant may need a right of way or right to park cars in nearby car park - these easements will need to be set out clearly in the lease
Rights excepted and reserved:
The landlord may need to reserve rights for itself to access the tenant’s premises, perhaps to run cables through it or to carry out repairs to the rest of the building.
What are prescribed lease clauses?
The land registry method to speed up lease registration
Where you are granting a registrable lease your lease must include a list of prescribed lease clauses at the front
