Leasehold Covenants

Question 1

What is a covenant?

Answer 1

An agreement by the parties which regulates or prohibits action; requires a part to do something or not to do something

Question 2

What is an express covenant?

Answer 2

One which is expressly agreed between the parties

Inserted in the written contract/deed

Question 3

What is an implied covenant?

Answer 3

One which is not specifically stated in the contract but is implied by common law or statutue

Question 4

Usual covenants - Hampshire v Wickens 1878

Answer 4

LL - quiet enjoyment
T - pay rent, rates/taxes, keep/deliver up in repair, allow access to LL if cov to repair
Depends on facts of case

Question 5

Covenants implied at common law

Answer 5

LL - quiet enjoyment, not to derogate, right of re-entry for non-payment of rent (condition)
T - pay rent, rates/taxes, not to commit waste, keep/deliver up in repair, allow access to LL

Question 6

Quiet enjoyment

Answer 6

Right to be put in possession at start of tenancy and remain quietly in possess throughout term
Right to use property without unreasonable/unnecessary interference from LL

Question 7

Qualified covenant - Alienation

Answer 7

s19(1)A LTA27 - consent shall not unreasonably be withheld
LTA 88 - T serves written notice on LL for consent, LL must give consent within reasonable time unless reasonable not to. Claim in tort - breach of statutory duty

Question 8

Qualified covenant - Alteration

Answer 8

s19(2) LTA27 - LL consent cant be unreasonably withheld if alteration an improvement from Ts p.o.v

Question 9

Qualified - User

Answer 9

s19(3) LTA27 - fine cant be required for giving consent, unless structural alterations involved

Question 10

How are LH covenants enforced?

Answer 10

Different rules depending on when tenancy created

If on/after 1 January 1996, Landlord and Tenant (Covenants) Act 1995 applies

Question 11

Old tenancies

Answer 11

Original T remains liable under privity of contract
Assignee liable under privity of estate
Original T can sue immediate Assignee under covenant of indemnity implied into assignment/transfer

Question 12

New tenancies

Answer 12

LT(C)A 95 abolished privity of contract
LL must serve notice on T req release form oblitagations
LL can require T to guarantee obligations of immediate assignee by entering into AGA
Benefits and burdens of all L&T covenants pass on assignment

Question 13

Remedies for breach of covenant 6

Answer 13

Enforced by normal remedies available at law/equity for breach of contract:
Damages
Specific Performance - compel compliance of positive
Injunction - restrain/compel breach
Possession - forfeiture/procedure in statutes
CRAR - commercial
Action for rent is an action for debt - Civil Procedure Rules apply