leasehold Flashcards
question about nature of interest
- a lease is one of the 2 legal estates capable of subsisting at law
- essential characteristics for a lease
essential characteristics for a lease
- exclusive possession- street v mountford
- certainty of duration- lace v chandler
- formalities- need a deed (s52(1) LPA, deed needs to satisfy requirements in s1 LPMPA 89 (witnesses, and deed on face of it)
- or equitable lease- s2 LPMPA (signed, in writing, incorporate all terms)
street v mount ford
intended to make a license but was a lease because of exclusive possession
lace v chandler
- for the period of the war wasnt a lease because no certainty of duration
question about rent arrears- new lease
- mention it is a new lease- before 1st jan 1996, when LTCA 95 came into force
- s5 LTCA
- S16 LTCA
- S17 LTCA
- OR S3 LTCA
S5 LTCA
- automatically releases the outgoing tenant from liability for breaches of Cov after assignment of lease so prima facie, outgoing T is not liable
s16 LTCA
- but may be liable as a guarantor if an AGA was entered in to with the landlord on assignment of the lease
s17 LTCA
- if action is taken against a former tenant, S17 LTCA applies as rent is a “fixed charge”
- notice must be served by L on T
- max 6 months arrears can be claimed
or s3 LTCA
- automatic transmission of ben and burd of covs- so landlord can go after assignee
question about rent arrears- old lease
- mention it is an old lease (pre 1st jan 96)
- privity of contract between L and T
- that and the effect of s79 LPA means T continues to be liable for breach of Cov
- moule v garrett
- s77 LPA
moule v garrett
- t can claim indemnity directly from assignee under this rule but it is unlikely to be successful as they are probs in financial difficulties
s77 LPA
- t can also claim against the person who assigned to the final assignee under the implied statutory indemnity
privity of estate
- landlord can sue the assignee directly
question about refusing consent for assignment
- nature of alienation covenant- probs gonna be qualified- meaning it can only be assigned with the landlords consent
- s19(1) LTA 27
- if it is a new lease and a commercial lease
- is refusal of consent reasonable?
s19(1) LTA
- notwithstanding an agreement to the contrary, consent cannot be unreasonably withheld
new and commercial lease
- may be circs in which consent to assignment may be withheld and/or conditions to which consent to an assignment may be made which will not be subject to the statutory reasonableness test (s22 LTCA)
- if an AGA needs to be provided for consent then that would fall within the exception
is refusal of consent reasonable?
- international drilling fluids
- ashworth Frazer ltd
international drilling fluids
- purpose of qualified Cov is to protect L from having property used in an undesirable way or have an undesirable tenant
- not entitled to refuse on grounds with nothing to do with L/T relationship
- can refuse on the grounds of the purpose A will use the property for, even if its not forbidden in the lease
ashworth Frazer ltd
- whether or not consent has been reasonably withheld is a question of fact in each case
remedies for non-payment of rent
- l can sue for debt subject to limitation period
- if new lease- aga- can go against guarantor- good option if assignee doesnt have the money- s17 LTCA- cant get more than 6 months rent- mention rent is a fixed charge
- for commercial properties
- forfeiture (same as other Cov breaches)
commercial properties non payment
- only available against t in possession
- min 7 days rent arrears, min 7 days notice of intention to recover
- notice must be served by authorised enforcement agent
- but by giving notice it gives T time to remove goods so can be ineffective
remedies for breach of Cov?- not rent
- remedy of forfeiture- effect is to bring lease to an end
- for it to be available a provision must be expressly included in the lease
- process- necessary to make a formal demand between sunrise and sunset
s146 LPA- breach of Cov other than rent
- notice specifying breach
- requiring breach to be rectified within a reasonable time
- setting out compensation (if desired)
is the breach remediable ?
- expert clothing
- savva v houssein
- scala v Forbes
expert clothing
- can the harm done be remedied by compliance together with compensation?
savva v houssein
- breaches of restrictive covs may be capable of remedy
scala v Forbes
- breaches of assignment covs are not capable of remedy
central estates v woolgar
t convicted of running a brothel
l learnt of this and wanted to end the lease but a clerk wasnt aware of this and sent out a rent demand
so held that l had waived the breach
remedies if the breach isn’t remediable
- can reenter by peaceable reentry
- or court order (the advisable option)
- cant reenter if part/wholly a dwelling
- can also get an injunction (equitable remedy)