8 - Contents of a lease (part i)

Question 1

what is good covenant strength?

Answer 1

ensure tenants will pay the rent - attract future value

Question 2

what is the internal envelope?

Answer 2

lease of part of property - Tenant is only directly responsible for upkeep of the internal envelope

Question 3

if the property is unfit for use, does the tenant still have to pay rent?

Answer 3

yes, unless there is a rent suspension clause - rent is usually suspended until the premises is fit for occupation again

Question 4

how does the landlord avoid losing rent when the premises are unfit for occupation?

Answer 4

make sure he is ensured for loss of rent and insured risks

Question 5

what is forfeiture?

Answer 5

Landlord re-enters their property following a trigger event, terminating the lease

Question 6

when can the landlord forfeit the lease?

Answer 6

there must be an express forfeiture clause in the lease

Question 7

what is a Jervis v Harris clause?

Answer 7

Where the tenant has breached a repair covenant, if the lease has a Jervis v Harris clause, the landlord can go into the property, carry out the repairs himself and recover the cost from the tenant as a debt.

Question 8

what is ‘clear rent’?

Answer 8

Highest possible rent with lowest maintenance payments - part of landlord’s objectives