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Flashcards in Covenants in Leases Deck (46)
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1

Owen v Gadd [1956]

Quiet Enjoyment

Landlord's Express Covenants

Erection of scaffolding hindering access to property was a breach of landlord's express covenant to quiet enjoyment

2

Kenny v Preen [1963]

Quiet Enjoyment

Landlord's Express Covenants

Persistent intimidation of tenant to induce him to leave was a breach of landlord's express covenant to quiet enjoyment

3

Southwark LBC v Mills [2001]

Quiet Enjoyment

Landlord's Express Covenants

Failing to adequately soundproof a flat was NOT a breach of landlord's express covenant to quiet enjoyment

4

Landlord's Express Covenants

  • Quiet enjoyment – landlord is covenanting that he is the owner and is not going to interfere with tenant’s enjoyment of premises
  • Insure – landlord may take on obligation to insure the premises – often tenant has to pay for it
  • Repair – usually in a short lease or where tenant is paying a service charge for repairs
  • To enforce covenants in other leases in the same building
  • No legal mechanism for 1 tenant to sue another; landlord can enforce covenant in tenant’s own lease

5

To Pay Rent

Tenant's Express Covenants

  • Tenant’s covenant to pay rent (usually in advance, usually quarterly, but sometimes monthly)
  • Could also be a covenant to pay Service charge / insurance premium
  • Usually an express rent review clause because without it, landlord cannot increase the rent during a contract (will never be implied in)
  • Can be a set of complex calculations in commercial property

6

Proudfoot v Hart [1890]

Standard of Repair

Tenant's Express Covenants

  • Standard of repair is dictated by:
    • character of neighbourhood
    • age of premises
    • express words of covenant
  • If the clause says tenant will put and keep the property in repair, it obliges the tenant to repair the property to the required standard of repair and keep it there.
  • Keeping it in repair means have to maintain standard during the term
  • Leave the property in repair means has to be at that standard at the end of the lease.

7

8

Lurcott v Wakeley [1911]

Standard of Repair

Tenant's Express Covenants

  • Repair must be distinguished from an obligation to renew.
    • Tenant entered into an express repairing covenant for a 200 year old house. Front wall had to be completely taken down and rebuilt. Tenant argued this was well beyond repair and amounted to renewal. Repair includes renewal of a small part of a property whereas renewal means replacement of the whole property or a substantial party. Wall was, therefore, repair.

9

Lister v Lane [1883]

Standard of Repair

Tenant's Express Covenants

  • A covenant to repair is not a covenant to give back a different thing from that which the tenant took when he entered the covenant.

10

Ravenseft Properties Ltd v Davstone (Holdings) Ltd [1980]

Standard of Repair

Tenant's Express Covenants

  • Concrete cladding of a new building fell off. Necessary to insert expansion joints omitted from the original design.
  • Court held this did not change the character of the building so as to take the obligation out of the covenant to repair; cost of the joints formed a trivial part of value of whole building.

11

Brew Brothers Ltd v Snax (Ross) Ltd [1970]

Standard of Repair

Tenant's Express Covenants

  • Fllank wall of a fish and shop cracked and tilted over next door’s garage forecourt as a result of seepage through defective drains. Cost of works was £8000 and building as a whole valued at £7500-9500. Held work did not fall within scope of repairing covenant; question one of degree in each case

12

Regis Property v Dudley [1959]

Standard of Repair

Tenant's Express Covenants

  • Tenant not usually liable for fair wear & tear (unless expressly made so)

13

Wilson v Rosenthal [1906]

Alienation

Tenant's Express Covenants

Covenant against subletting whole premise doesn’t prohibit subletting part

14

Church v Brown [1808]

Alienation

Tenant's Express Covenants

A covenant against assigning doesn’t prohibit subletting

 

15

S19(a) LTA 1927

Alienation

Tenant's Express Covenants

Landlord’s consent can’t be unreasonably withheld. Can’t contract out

16

S144 LPA 1927

Alienation

Tenant's Express Covenants

Landlord cannot ask for payment for consent.

Can’t contract out

17

International Drilling Fluids [1996]

Alienation

Tenant's Express Covenants

Sets out principles of when it’s reasonable to withhold consent

18

Bates v Donaldson [1896]

Alienation

Tenant's Express Covenants

  • Is there an undesirable use or undesirable tenant (unsatisfactory financial reference)?

19

Bickel v Duke of Westminster [1977]

Alienation

Tenant's Express Covenants

A landlord is not entitled to refuse consent on grounds that have nothing to do with the relationship of landlord and tenant in regard to the subject matter of the lease.

20

Ashworth Fraser v Gloucester CC

Alienation

Tenant's Express Covenants

  • Landlord refused consent because proposed assignee had run off with landlord’s wife. Not reasonable.

21

LTA 1988

Alienation

Tenant's Express Covenants

  • if tenant believes landlord is being unreasonable:
    • Can sue for damages;
    • Assign regardless
    • Apply to court for declaration landlord is acting unreasonably

22

Midland Bank v Chart Enterprises [1990]

Alienation

Tenant's Express Covenants

Landlord must reply within a certain time, and provide written reasons for refusing consent

23

Old Grovebury Manor Farm Ltd v W Seymour Plant and Hire Ltd (No 2) [1979]

Result of Breach

Alienation

Tenant's Express Covenants

 

An assignment or sub-letting in breach of covenant is valid to pass (or create) a legal estate but may give rise to a right to forfeiture or a claim in damages.

24

S22 LT(C)A 1995

Alienation

Tenant's Express Covenants

  • Amends S.19 LTA 1927 to make it more pro-landlord – landlord and tenant can agree in commercial lease circumstances in which will be deemed reasonable to refuse consent (e.g. if proposed use will conflict with landlord’s business, not a satisfactory financial reference)

25

S19 LTA 1927

Alienation

Tenant's Express Covenants

  • An AGA will always be reasonable – Authorised Guarantee Agreement – term which allows landlord to ask for outgoing tenant to enter into an AGA as a condition of landlord’s consent to an assignment/subletting

26

Joint London Holdings Ltd v Mount Cook Land Ltd [2006] 2 P&CR 17

Use

Tenant's Express Covenants

  • One use specified.
  • 1950 lease including a covenant that premises would be used as a victualler and coffee house. Tenant wanted to assign the lease to Pret a Manger. Question was whether assignment to Pret and them selling food and drink would be a breach of the covenant. Word victualler doesn’t just mean alcoholic drinks so wouldn’t be in breach, but use as a coffee house was confined to selling on the premises and not for take away so would be a breach of the lease.

27

Markham v Paget [1908]

Tenant’s quiet (uninterrupted) enjoyment of premises

Landlord’s Implied Covenants

In absence of express obligation, this covenant will be implied into the lease

28

29

Perera v Vandiyar [1953]

Tenant’s quiet (uninterrupted) enjoyment of premises

Landlord’s Implied Covenants

Landlord cut off the tenant’s gas and electricity trying to get rid of him, which was a breach

30

Harmer v Jumbil (Nigeria) Tin Areas Ltd [1921]

Tenant’s quiet (uninterrupted) enjoyment of premises

Landlord’s Implied Covenants

  • Non-derogation from Grant – can’t take away what has given to the tenant
  • Landlord let land to a tenant for storage of explosives; tenant needed a licence and could only get one if no buildings within a certain distance. Landlord started to build on adjoining land within prohibited area. Injunction was granted preventing him from building as he was derogating from his grant.