Alteration covenants

Question 1

what happens if there are no alteration covenants?

Answer 1

Property can be altered in anyway if there are no alteration covenants

Question 2

if there is an absolute alteration covenant, what can T do to make alterations?

Answer 2

T can rely on s3 LTA 1925 to make improvements

Question 3

explain the s3 LTA 1925 procedure

Answer 3

1) T serves notice setting out improvements
2) LL has 3 months to either:
o Consent
o Offer to carry out work for reasonable rent increase
o Object

3a) If LL does not respond, T can carry out the works
3b) If LL objects, T can apply to court

T can claim compensation at the end of the lease if works added value

Question 4

under s3 LTA 1925, what is the effect if T rejects LL’s offer to do the works?

Answer 4

T can reject but cannot apply to court or do work themselves.

Question 4

under s3 LTA 1925, on what basis will the court authorise the works?

Answer 4

If the works:
 Add value
 Are reasonable + suitable to the property’s character
 Doesn’t diminish the value of any other property owned by the LL

Question 5

under s3 LTA 1925, what is the position if T withdraws?

Answer 5

LL cannot undertake the work

Question 6

what is the definition of an ‘improvement’?

Answer 6

works that increase the value/usefulness of the property, even if they reduce the LL’s reversionary interest

Question 7

what effect does a qualified covenant have?

Answer 7

it is automatically converted to a fully qualified covenant.