Remedies For Breach Of Leasehold Covs

Question 1

Leases before 1996

Answer 1

Original tenant remains liable.

Question 2

Leases post 1996

Answer 2

Original tenant released from liability as soon as it assigns the lease to another tenant

Question 3

Remedies for non-payment of rent

Answer 3

Action in debt - six years limitation
Commercial rent areas recovery - seize all goods belonging to tenant. Landlord must give 7 days notice and use enforcement agency. Cannot remove items up to value of £1,350 which are necessary for tenant’s business.
Guarantors
Rent deposits
Forfeiture

Question 4

Remedies for breach of covenant to repair

Answer 4

Specific performance - courts will grant this only where other remedies are not appropriate
Damages - limited to amount which the landlords reversion has diminished in value, special procedure must be followed for leases granted for more than 7 years and more than 3 years left to run, namely notice must be served on tenant. Tenant has right to serve counter notice within 28 days and if the tenant does so, landlord cannot go any further without permission from the court.
Self help - jervis v Harris - landlord may enter, carry out works and recover costs as a debt
Forfeiture - landlord can serve s146 notice - for leases of 7 years with more than 3 years left to run - tenant has right to serve counter notice

Question 5

Remedies for breach of other covenants

Answer 5

• forfeiture - although no need for s146 notice
  Injunction - negative covenant
  Specific performance - positive covenant
  Damages
  Pursuing former tenant or guarantor
  Deduction from rent deposit deed providing the deed covers it.

Question 6

Surrender

Answer 6

Must be agreed by parties and be made by deed to be legal.

Question 7

1954

Answer 7

There must be a tenancy of a property which is occupied by the tenant for business purposes.

What’s excluded?
Tenancies at will
Fixed term tenancies that do not exceed 6 months
Certain types - agri holdings, farm business and minings
Fixed term tenancies that have been contracted out by the statutory procedure

Question 8

Termination by landlord - s25 notice

Answer 8

To be served no less than six months and no more than 12 months before the termination date specified on the notice. Landlord can indicate in the notice of it will oppose a new tenancy and tenant must apply to the court before expiration of the s25 notice. Landlord can preempt this by apply for an order to terminate the lease

Question 9

Tenant serving a s26 request for new tenancy

Answer 9

Same time limits as a s25. If landlord wishes to oppose it must serve a counter notice within two months if the service of the tenant’s s26. Tenant must apply to the court for new lease prior to commencement date of the new tenancy specified in the s26

Question 10

Tenant serving s27 notice

Answer 10

3 months written notice so long as the notice does not expire before the end of the contractual termination date.

Question 11

Tenant ceasing to be in occupation for business purposes at the end of the lease.

Question 12

Landlords grounds for opposition

Answer 12

Tenant’s failure to repair - disc
Tenant’s persistent delay in paying rent - disc
Tenant’s substantial breach of other obligations - disc
Landlord has offered suitable alternative accommodation
Tenancy is an underletting of part - disc
Landlord intends to demolish or reconstruct and could not reasonably do so without obtaining possession.
Landlord intends to occupy for its own business or as a residence - can only rely on ground if they have owned interest for at least 5 years before the ending of the current tenancy’