Leases- remedies and ending a lease

Question 1

what are the landlord’s remedies for breach of a rent covenant?

Answer 1

action for debt- landlord can only recover 6 years of rent arrears.

Forfeiture- involes bringing the lease to a premature end because of the tenant’s breach.

Distress and commercial rent arrears recovery- self help remedy when the premises are purely commercial, minimum of 7 days rent is owed and the lease has not been forfeited.

Question 2

what are the landlord’s remedies for breach of a non-rent covenant?

Answer 2

1. injuction.
2. forfeiture.
3. specific performance.
4. damages.

Question 3

what are the ways in which a lease can end?

Answer 3

notice to quit- method for determining a periodic tenancy.

merger- tenant acquires the landlord’s interest and becomes its own landlord.

forfeiture- right of a landlord to terminate the lease prematurely.

break clause.

surrender- handing back of the lease by the tenant to the landlord with the landlord’s consent.

effluxation of time.

Question 4

forfeiture in legal and equitable leases?

Answer 4

legal- must be an express forfeiture clause in the lease allowing the landlord to forfeit the lease in the event of a breach of covenant.

equitable- right to forfeit for non-payment of lease is implied into equitable leases as one of the implied usual covenants.

Question 5

how to exercise the forfeiture right?

Answer 5

1. peaceably re-entering the property (purely commercial) or
2. obtaining a court order (residential and mixed and commercial)

Question 6

what is a waiver in terms of forfeiture?

Answer 6

landlord must not have waived his right to forfeit.
he may waive the right if……
1. he is aware of the acts or omissions giving rise to the forfeit and
2. he does some unequivocal act recognising the continued existence of the lease.

Question 7

how can waiver of forfeiture take place?

Answer 7

can take place inadvertently…

if there is a continuing breach, waiver only lasts until the next day the breach continues at which point the landlord can choose to reject the rent and forfeit the lease.

if a breach is non-continuing, such as sub-letting without consent, waiver is permanent.
(non payment of rent is classed as a non-continuing breach)

Question 8

what are the steps for forfeiture for a breach of rent covenant?

Answer 8

1. has there been a breach.
2. is there a forfeiture clause.
3. has there been a waiver?
4. formal demand.
   - landlord must have made a formal demand for the exact amount of rent due on the day when it becomes payable, upon the premises, between the hours of sunrise and sunset unless
   - the lease expressly waives this requirement and at least six months rent is in arrears and there are insufficient distrainable foods on the premises ot satisfy arrears due.
5. exercise of the right.
   - court order or peaceful reentry.
6. relief.

• court’s discretion to allow the lease to continue and thereby end the forfeiture process.

Question 9

what is relief from forfeiture?

Answer 9

if before the court order……
- the tenant pays into court all arears and costs before trial all further proceedings are stayed.

if at or after the court order……
- court has discretion to grant relief on the condition that the arrears are paid.
- when the landlord, has re-entered under a court order, the application for relief must be made within 6 months of re-entry.