Leasehold covenant

Question 1

What are leasehold covenants?

Answer 1

Leasehold covenants define the legal rights and obligations between landlords and tenants, including both express and implied covenants.

Question 2

What is the nature of express covenants in lease agreements?

Answer 2

Express covenants are directly stated within the lease agreement, detailing specific obligations of each party, such as maintenance, insurance, rent payment, and restrictions on assignment or alterations.

Question 3

What constitutes a covenant against assignment in a lease?

Answer 3

A covenant against assignment typically requires the tenant not to assign or sublet the leased property without the landlord’s consent, which cannot be unreasonably withheld.

Question 4

What are implied covenants in lease agreements?

Answer 4

Implied covenants are not explicitly mentioned but understood to be part of the lease based on common law or statute, such as the landlord’s covenant for quiet enjoyment and the tenant’s obligation to pay rent and use the premises in a tenant-like manner.

Question 5

How have statutory interventions impacted landlord obligations?

Answer 5

Statutory interventions like the Landlord and Tenant Act 1985 and Homes (Fitness for Human Habitation) Act 2018 have introduced specific obligations for landlords, emphasizing repair and maintenance.

Question 6

What remedies are available to landlords for breaches of leasehold covenants?

Answer 6

Landlord’s remedies include forfeiture, action for rent arrears, and injunctions against the tenant for covenant breaches.

Question 7

What remedies can tenants seek for breaches of leasehold covenants?

Answer 7

Tenant’s remedies can include seeking damages, specific performance, and recoupment of repair costs through rent deductions.

Question 8

How does exclusive possession distinguish a lease from a licence?

Answer 8

Exclusive possession, a hallmark of leases, implies the lessee’s control over the property to the exclusion of the landlord and third parties, distinguishing leases from licences.

Question 9

What is the significance of rent in a lease agreement?

Answer 9

Rent provides a basis for consideration in the contractual relationship between landlord and tenant but is not an absolute requirement for a lease to exist.

Question 10

How do courts view attempts to bypass statutory tenant protections?

Answer 10

Courts critically examine attempts to frame tenancy agreements as licences to avoid statutory tenant protections, focusing on the substance of the agreement rather than its label.

Question 11

What is forfeiture in the context of lease agreements?

Answer 11

Forfeiture is a landlord’s right to terminate the lease early due to a breach by the tenant, contingent on the existence of a forfeiture clause.

Question 12

What actions can waive the right to forfeiture?

Answer 12

A landlord may waive the right to forfeiture by actions that recognise the lease’s continuation, such as accepting rent post-breach.

Question 13

How are possession proceedings used in the context of forfeiture?

Answer 13

Possession proceedings are the formal legal route for landlords to reclaim property, offering specific protections and relief opportunities for tenants, whereas physical re-entry is generally discouraged.

Question 14

What changes did the Landlord and Tenant (Covenants) Act 1995 introduce for post-1996 leases?

Answer 14

The Act abolished continuing liability for tenants upon assignment and established a framework for the transmission of covenant benefits and burdens to assignees.

Question 15

How is continuing liability addressed in pre-1996 leases?

Answer 15

Both landlords and tenants remain contractually liable for covenants throughout the lease term, even after assigning their interest.

Question 16

What is the landlord’s duty established by Liverpool CC v Irwin [1977]?

Answer 16

The landlord’s duty to maintain common parts in residential buildings.

Question 17

How do courts view sham or pretence in lease agreements?

Answer 17

Courts have developed a critical eye for shams or pretences, focusing on the actual practice and intent behind agreements to determine the true nature of the relationship.

Question 18

What is the significance of the case Street v Mountford in lease law?

Answer 18

It established that the substance of an agreement, not the label, determines its nature, marking a judicial pivot to recognize genuine leases over disguised licences.

Question 19

How does assignment affect the transmission of leasehold covenants?

Answer 19

Assignment can transmit leasehold covenants, with post-1996 leases benefiting from the Landlord and Tenant (Covenants) Act 1995, which simplified the process and removed continuing liability for tenants.

Question 20

What role does statutory notice play in leasehold covenants?

Answer 20

Statutory notices and relief mechanisms introduced by the Law of Property Act 1925 and subsequent reforms mitigate the harshness of continuing liability, providing a process for relief and notice requirements.