Leases Flashcards
What is a parole lease ?
Legal lease that doesn’t require a deed:
- less then 3 years
- immediate right to possess
- market rate rent
- no premium paid.
What are the essential characteristics of a lease ?
- Must be for fixed period or unlimited time
- Must give exclusive possession
- Grant must have correct formalities
What is alienation ?
Disposing of lease by way of assignment, sun-lease or mortgage
What is a qualified covenant about alienation?
There is a covenants by tenant not to assign the lease without landlords consent
What is the effect of s 19 Landlord and tenant act 1927 on alienation?
Translates qualified covenant into fully qualified covenant so landlord cannot unreasonably withhold consent.
What differences in liability between leases before and after 1996 ?
Before 1996 - privity of contract between original tenant and landlord
After 1996 - original tenant only bound by lease while lease is vested in them upon assignment they will pass.
What is an AGA and it’s effect ?
Authorised guarantee agreement - agreement between landlord and original tenant that assigned tenant will perform lease covenants
When can a landlord seek and AGA ?
Where lease contains a covenant against alienation without landlords consent and it is reasonable to do so
What are landlords options for non rent payment ?
- Debt action
- Commercial rent arrears recovery
- forefeiture
What are landlords options for breach of other covenants ?
- damages
- Specific performance
- forfeiture
- self help remedy
What is self help remedy ?
Remedy for breach of covenants to repair - allows landlord to enter premises and do the work themselves.
What are options for bringing a lease to an end ?
- effluxion of time
- notice to quit
- break clause
- surrender
- disclaimer
- frustration
- repudiate breach
- merger
