Contents of a lease Flashcards
(43 cards)
Absolute Covenant
Absolutely cannot carry out action
Unless one off consent/permenant variation of lease
Qualified Covenant
Landlord consent obtained first
Fully Qualified Covenant
Landlords consent, but this cannot be unreasonably held
In terms of insurance, if there is a storm causing flooding , who is responsible for reinstating the property?
- Landlord covenants to reinstate to its ‘full reinstatement value’
- Tenant pays ‘insurance rent’
- Landlord uses insurance money to reinstate the property as it is under an ‘insured risk’
If the property is unfit for occupation, as a result of damage by a risk the landlord is obliged to insure, then what happens to rent?
It is suspended for 3 years or earlier reinstatement.
When will rent suspension not apply
When the tenant themselves have caused the damage
On completion, regarding rent, what should be given from the tenant to the landlord?
On completion, the tenant will give the landlord the counterpart lease executed by the tenant. The lease is completed on a date between two of the usual quarter days (25 December and 25 March). The tenant will, therefore give the landlord an apportioned sum representing the rent payable in advance under the lease.
What should this title be registered as?
10 year lease of office, deed, unregistered freehold.
Good leasehold class of title
When should the mortgage of a property be discharged?
- Sellers solicitor should provide an undertaking to discharge the mortgage immediately on completion
When does stamp duty land tax need to be paid if there is a purchase price of £2,500,000 plut VAT, and a 10% deposit already paid?
The company will pay SLDT on the purchase price PLUS VAT within 14 days of completion
When can the tenant carry out changes under an ABSOLUTE covenant and what is the procedure
- improvements only
- tenant servces notice with plans to landlord
- landlord has 3 months to object
- if object - tenant can ask the court for authorisation or the landlord can offer to carry out the work for a reasonable sum - but cannot force tenant to.
For underletting - what consent is neede?
consent cannot be unreasonably witheld
unless:
- shit refrences, longstanding repair breach, competes with the landlords buisness
Absolute prohibition to assigning
Cannot assign
Qualified prohibition
Cannot assign without the landlords consent and this must not be reasonably witheld.
In addition to references, what else do landlords normally seek before any assignment takes place?
- Require undertaking from assignors solicitors to pay the legal costs
- guarantor or AGA
When should the landlords consent be given for assignment?
On or before completion
Under the SC’s, when may either party rescind the contract:
If consent has not been given 3 days before the completion date
The assignor and the assignee can agree to defer completion to a later date when the landlord’s consent has been obtained
Under the SCPS’s when can either party rescind
If consent has not been obtained by completion, completion postponed 5 working day AFTER assignor notifies buyer consent given.
Contract not rescinded until 6 months since OG date
If the lease was granted on or after 1 January 1996 then the assignor will be given a
AGA
If lease was granted before 1 January 1996 then what is given
a direct covenant by the assignee to the landlord to observe and perform the covenants in the lease for the remainder of the term
What is the assignee of an old lease liable for:
under the doctrine of ‘privity of estate’ for all covenants in the lease that ‘touch and concern the land’.
What will the landlord of an old lease then make the assignee enter into to extend their liability?
a direct covenant to observe the covenants for the remainder of the term of the lease creating privity of contract.
What does an assignee of a new lease liable for
Only covenants while the lease is vested in them
If the lease is registered with absolute title then what does this mean:
- ask for official copies only
