Leases

Question 1

What are the conditions for a parol lease?

Answer 1

• lease for less than or equal to 3 years,
• takes effect in possession,
• at market rent,
• without a fine/premium

Question 2

When may equity recognise a lease if a deed is required but isn’t used?

Answer 2

• there’s a valid contract, and
• C has clean hands (specific performance is available)

Question 3

3 conditions for a lease to arise

Answer 3

1. for permitted duration (ascertainable period)
2. gives exclusive possession
3. formalities are met

Question 4

How must a lease for over 3 years be created?

Answer 4

By deed

Question 5

When is a landlord liable for obligations in respect of fitness of the property?

Answer 5

If there’s disrepair, and landlord has been notified of it

Question 6

How are qualified covenants on alienation interpreted?

Answer 6

As fully qualified covenants

Question 7

What is the advantage of specifying circumstances in which landlord will withhold consent for alienation?

Answer 7

If they arise, there’s no reasonableness test- landlord can simply withhold consent

Question 8

What is an old lease?

Answer 8

Lease created before 1.1.1996

Question 9

Liability of original + assignee tenant in old leases

Answer 9

Original tenant: liable under privity of contract
Assignee: liable under privity of estate

Question 10

Liability of original + assignee tenant in new leases

Answer 10

All covenants pass to the assignee on assignment, so landlord can only pursue the current tenant

Question 11

What are the conditions for the landlord to recover a fixed charge from the original tenant under an AGA?

Answer 11

• must serve a default notice,
• on the former tenant,
• within 6 months of the charge falling due

Question 12

How long is an overriding lease?

Answer 12

Same as original lease, but 3 days shorter

Question 13

What are the conditions for using Commercial Rent Arrears Recovery?

Answer 13

• min. 7 days’ rent is due,
• 7 days’ notice of intention to seize goods was given

Question 14

Landlord’s remedies for non-payment of rent

Answer 14

• debt action
• Commercial Rent Arrears Recovery
• forfeiture

Question 15

Landlord’s remedies for breaches of other covenants

Answer 15

• damages
• specific performance
• forfeiture
• self-help remedy

Question 16

Which landlord remedies must expressly be reserved in the lease?

Answer 16

• forfeiture (for both rent and other covenants),
• self-help remedy (other covenants)