Remedies for breach of leasehold covenants

Question 1

4 remedies for breach of covenant to pay rent

Answer 1

• debt action
• commercial rent arrears recovery
• pursue guarantors/deposit
• forfeiture

Question 2

How much rent must be outstanding to use commercial rent arrears recovery?

Answer 2

At least 7 days

Question 3

What is s.17 of the Landlord and Tenant (Covenants) Act?

Answer 3

If the landlord wants to pursue a former tenant or guarantor for rent, he must serve a “default notice” within 6 months of the current tenant’s breach

Question 4

Which 2 things must be true to use forfeiture?

Answer 4

1. the lease contains a forfeiture clause
2. the landlord makes a formal demand (unless lease disposes of this)

Question 5

4 remedies for the breach of covenant to repair

Answer 5

1. specific performance
2. damages
3. self-help (Jervis v Harris)
4. forfeiture

Question 6

What are the statutory limitations on claiming damages for breach of repair covenant?

Answer 6

• they’re limited to the amount by which the landlord’s reversion fell in value due to the disrepair
• if the lease was for at least 7 years, with over 3 years left, landlord must serve a notice on the tenant (tenant can serve counter-notice within 28 days, meaning landlord can’t proceed without leave of court)

Question 7

What is the procedure to follow for forfeiture due to breach of covenant to repair?

Answer 7

s.146 LPA:
- must serve a s.146 notice on the tenant, specifying the breach, requiring it to be remedied, and requiring compensation
If the lease was for at least 7 years with over 3 years left, tenant can serve counter-notice within 28 days