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Landlord & Tenant: Leasehold Covenants. Terminology Characteristics of a lease Leasehold covenants Enforceability of leasehold covenants. Landlord & Tenant. Terminology ‘Term of years absolute’ Tenancy/lease Landlord/lessor & tenant/lessee Freehold reversion Assignment Sub-lease.

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landlord tenant leasehold covenants

Landlord & Tenant:Leasehold Covenants

Terminology

Characteristics of a lease

Leasehold covenants

Enforceability of leasehold covenants

landlord tenant
Landlord & Tenant
  • Terminology
    • ‘Term of years absolute’
    • Tenancy/lease
    • Landlord/lessor & tenant/lessee
    • Freehold reversion
    • Assignment
    • Sub-lease
landlord tenant1
Landlord & Tenant
  • Characteristics of a lease:
    • Exclusive possession
      • Street v Mountford [1985]AC 809
    • Certain duration
      • Lace v Chantler [1944] KB 368
      • Prudential Assurance Co Ltd v London Residuary Body [1992] 2 AC 386
    • Rent?
      • S.205 Law of Property Act 1925
      • Skipton Building Society v Clayton (1993) 66 P & CR 223
landlord tenant2
Landlord & Tenant
  • Legal leases
    • Express grant (s.52(1) LPA)
    • Exceptions (s.52(2)(d) & s.54(2) LPA)
    • Implied Grant (periodic tenancy)
  • Equitable leases
    • No formal grant (deed)
    • Grant not comply with formality requirements (s.1 LP (MP) Act 1989)
    • Walsh v Lonsdale (1882) 21 ChD 9
landlord tenant3
Landlord & Tenant
  • Legal Lease
    • Registered Land
      • Register over 7 years
      • Less 7 years: overriding interest? Schedules 1 & 3 LRA 2002
    • Unregistered Land
      • ‘legal rights bind the world’
landlord tenant4
Landlord & Tenant
  • Equitable Lease
    • Registered Land
      • Sch 1 & 3 LRA 2002?
      • Notice on register
    • Unregistered Land
      • Class C (iv) Land Charge (estate contract)
landlord tenant5
Landlord & Tenant
  • Type of lease
    • Fixed term lease
    • Periodic lease (express/implied)
    • Tenancy at sufferance
    • Tenancy at will
leasehold covenants
Leasehold Covenants
  • Landlord Covenants
    • Quiet enjoyment
    • Not to derogate from grant
      • Aldin v Latimer Clark, Muirhead & Co [1894] 2 Ch 437
    • Repair (s.11 L&T Act 1985)
  • Tenant Covenants
    • Pay rent
    • Repair
    • Not to assign/sub-let (qualified/absolute)
enforceability of leasehold covenants pre 1 1 1996
Enforceability of Leasehold Covenants: pre 1.1.1996
  • Original parties
    • ‘privity of contract’ & ‘privity of estate’
    • Continuing liability (s.79 LPA)
    • Indemnity covenant
      • Unreg land: s.77 LPA
      • Reg land: s.134 LRA 2002
    • Rule in Moule v Garrett (1872) LR 7
enforceability of leasehold covenants pre 1 1 19961
Enforceability of Leasehold Covenants: pre 1.1.1996
  • Successors in title
    • Assignment of lease to new tenant
      • ‘privity of estate’
      • Covenant ‘touch & concern’ the land? (Spencer’s case)
        • P A Swift Investments v Combined English Stores Group [1989] AC 632
    • Assignment of reversion to new landlord
      • Covenants that ‘refer to the subject matter of the lease’ (s.141 & 142 LPA)
enforceability of leasehold covenants post 1 1 1996
Enforceability of Leasehold Covenants: post 1.1.1996
  • Original parties
    • Tenant
      • S.5 L&T (Covenants) Act 1995
      • S.11 ‘excluded assignment’
      • S.16 AGA
    • Landlord
      • S.6 (not automatic)
enforceability of leasehold covenants post 1 1 19961
Enforceability of Leasehold Covenants: post 1.1.1996
  • Successors in title
    • S.3 ‘benefit & burden of all ‘landlord’ & ‘tenant’ covenants pass on assignment
    • ‘landlord’ covenants
    • ‘tenant’ covenants
remedies
Remedies
  • Landlord remedies
    • Non payment of rent
      • Sue for rent
      • Distress
      • Forfeiture
        • Forfeiture clause in lease?
        • Notice
        • Re-entry (s.6 Criminal Law Act 1977)
        • Waiver?
        • Relief from forfeiture?
remedies1
Remedies
  • Landlord remedies
    • Other breaches
      • Damages (s.18 Landlord & tenant Act 1927)
      • Specific Performance (Rainbow Estates Ltd v Tokenhold Properties Ltd) [1999] Ch 64
      • Leasehold Properties (Repairs) Act 1938
      • Forfeiture
        • S.146 notice
        • Forfeiture clause
        • Waiver? (continuing breach)
        • Relief from forfeiture (s.146(2) )
remedies2
Remedies
  • S. 146 notice:
    • Rugby School (Governors) v Tannahill [1935] KB 87
    • Expert Clothing Service & Sales Ltd v Hillgate House Ltd [1986] 1 Ch 340
remedies3
Remedies
  • Tenant remedies
    • Harassment & eviction (s.1 PFE Act 1977)
    • Landlord failure to repair
      • Deduction from rent
      • Specific performance (s.17 L&T Act 1985)
termination
Termination
  • Expiry (security of tenure/right renew)
  • Notice (fixed term/periodic)
  • Surrender
  • Merger
  • Forfeiture
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