7.2 Covenants for Alterations, User and Planning

Question 1

Can a qualified user covenant be upgraded to a fully qualified covenant?

Answer 1

No

Question 2

If LL consents to change of use, what can the LL not ask of T?

Answer 2

For a lump sum payment or increased rent (unless change of use requires structural alterations).

Question 3

What are the 3 types of covenant?

Answer 3

Absolute, qualified and fully qualified

Question 4

For which type of covenant must the LL not unreasonably withhold consent?

Answer 4

fully qualified

Question 5

Which type of covenant gives the LL fullest discretion?

Answer 5

Absolute

Question 6

What type of covenant allows T to seek consent from LL but does not require the LL to act reasonably?

Answer 6

qualified

Question 7

A qualified alteration covenant will be upgraded to a fully qualified covenant if …?

Answer 7

The alteration is considered an improvement by the tenant (which most will be).

Question 8

What can happen if T wants to make an ‘improvement’ but the lease contains an absolute covenant against alterations?

Answer 8

T can serves a NOTICE on LL of intention to alter and proceed if LL doesn’t object within 3 months.

Question 9

If there is an absolute covenant against alternations, how else could the LL respond to T’s Notice?

Answer 9

Offer to make improvements in return for reasonable rent increase.

Question 10

If T refuses the LL’s offer to make improvements in return for reasonable rent increase, can T apply to court?

Answer 10

No

Question 11

If LL objects to T’s Notice to make improvements, T can apply to court for permission, which the court will grant if…

1. Adds to letting v____
2. Reasonable and suitable to the c_________ of the property; AND
3. Will not d_______ value of any other property of the LL.

Answer 11

1. Adds to letting VALUE
2. Reasonable and suitable to the CHARACTER of the property; AND
3. Will not DIMINISH value of any other property of the LL.

Question 12

If alterations of change of use class require planning permissions, who needs to obtain these?

Answer 12

Tenant

Question 13

Code for Leasing Business Premises states that for leases of WHOLE, T should not require consent for…?

Answer 13

internal, non-structural alterations

Question 14

Code for Leasing Business Premises states that for leases of PART, T should have what type of covenant for internal, non-structural alterations…?

Answer 14

fully qualified

Question 15

Code for Leasing Business Premises states that any reinstatement provisions of alteration should first appear where?

Answer 15

In the HoTs