Lease structure and content

Question 1

What is the difference for repairing obligations in terms of lease of whole and part?

Answer 1

whole = tenant solely responsible for interior, exterior, structure
part = may specify but likely only interior, common parts responsible by landlord

Question 2

What are the types of repair covenants?

Answer 2

Full repairing obligation
Qualified repairing obligation

Question 3

What is a full repairing obligation?

Answer 3

Tenant required to put premises in good repair if not in good repair

Question 4

What is required for a qualified repairing obligation?

Answer 4

Schedule of condition

Question 5

Who is responsible for insuring the property?

Answer 5

Landlord

Question 6

What is the doctrine of waste?

Answer 6

Cannot alter premises if reduces value

Question 7

What are the types of covenants you may see for alterations/change of use?

Answer 7

Absolute covenant – not permitted
Qualified covenant – permitted with landlords consent, doesn’t have to give
Fully qualified covenant – landlord consent ntbuw

Question 8

When may a qualified covenant be converted into a fully qualified covenant for alterations?

Answer 8

Tenant’s proposal for alterations are an improvement from Tenant’s POV

Question 9

Where a qualified covenant for alterations is converted into a fully qualified covenant, what conditions can the landlord require for giving consent?

Answer 9

• Compensation for loss in value to reversion
• Reinstatement of premises if reasonable
• Payments of expenses in giving consent

Question 10

How can a tenant carry out improvement works without consent of landlord?

Answer 10

serve notice of intention to carry out improvements

Question 11

What is the time limit where the landlord must object to a tenant’s notice to carry out improvements?

Answer 11

3 months

Question 12

How can a tenant carry out improvements if a landlord objects their notice within 3 months?

Answer 12

apply to court for permission

Question 13

When will court give permission to a tenant to carry out improvements?

Answer 13

When improvements:
- Adds to letting value
- Reasonable and suitable to character of property
- Wont diminish value of any other property belonging to L

Question 14

When will a tenant not be allowed to ask court for permission to carry out improvements?

Answer 14

If landlord offers to carry out improvements and increase rent

Question 15

Can a qualified covenant be converted for change of use?

Answer 15

No

Question 16

What are the statutory restrictions where a landlord consents to a change of use?

Answer 16

• May not charge lump sum or increase rent
• Unless change of use requires structural alterations

Question 17

What may be required when changing the use class of a property?

Answer 17

Planning permission and other consents

Question 18

What are the good practice points in the CLBP for alterations and change of use?

Answer 18

• Lease should only restrict alterations and change of use so far as necessary to protect value of premises and adjoining/neighbouring
• L must give T a fully qualified covenant for internal non-structural alterations in a lease of part
• Must give ability to carry out internal non-structural alterations in lease of whole
• If L requires alterations to be reinstated at end, should be clear in heads of terms. Otherwise lease may only require if reasonable