Remedies for breach of a leasehold covenant Flashcards
When is an action for debt applicable?
Remedy for non-payment of rent. A debt action may be brought in the County Court or the High Court.
The debt can be claimed from a former tenant: privity of contract for old lease, AGA for new lease.
What is the limitation period for bringing an action in debt?
Six years - up to 6 years arrears can be claimed.
What are the conditions required for a typical forfeiture clause to take effect?
Rent outstanding for a period - typically 21 days.
Breach or other tenant covenants or conditions.
Insolvency events affecting the tenant.
What is a section 146 notice?
To forfeit a lease for breach of covenants other than to pay rent/s, the landlord must serve a s146 notice on the tenant.
A s146 notice:
-specifies the breach
-requires remedy of the breach within a reasonable period
-requires the tenant to pay compensation
What is commercial rent arrears recovery?
The landlord may enter the commercial premises to seize goods belonging to the tenant, sell them, and use the proceeds to settle rent arrears.
When may CRAR be used?
When there is no less than 7 days’ rent outstanding, no more than 6 years of arrears.
Requires 7 days’ notice.
CRAR cannot be used after the lease is forfeited/using CRAR waives the right to forfeit the lease.
What is a section 17 notice?
Before proceeding against a former tenant/guarantor of a former tenant, it is necessary to serve a s17 notice on them.
For recovery of a ‘fixed charge’ (rent, service charge, liquidated sum).
Notice must be served within 6 months of the sum falling due.
What is a self-help/Jarvis v Harris clause?
If the tenant breaches the repairing obligation, the landlord can serve notice requiring the tenant to repair - if the tenant fails to do so, the landlord can enter the premises.
Lease must contain an express self-help clause.
Surrender - the landlord and tenant can bring the lease to an end if they both agree:
If the landlord wants to end early - the landlord pays a premium to the tenant for loss of tenancy;
If the tenant wants to end early - they need to pay a reverse premium to compensate for the loss of rent.
