Leases - Covenants Flashcards
(25 cards)
What is the basic structure of a lease?
Parties, date, definitions
Demise and rents
Tenant covenants
Landlord covenants
Rights granted and reserved
Provisos and declarations
Execution
What is the covenant for quiet enjoyment?
Landlord’s promise not to interfere with tenant’s possession or enjoyment. Breaches include physical interference and intimidation
What are the four key tenant covenants in leases?
Repair
Alterations
User
Alienation
What does a repair covenant require?
To keep premises in repair as would a reasonable owner (Proudfoot v Hart). Includes obligation to put into repair.
What limits a repair covenant?
A schedule of condition. Repair obligation is then only up to the documented condition at lease start.
What is the distinction between repair and renewal?
Repair: restoration of parts
Renewal: reconstruction of whole
What is a qualified covenant?
A restriction that allows action with landlord’s consent (e.g. “shall not alter without consent”).
What is a fully qualified covenant?
One that requires consent, but consent must not be unreasonably withheld
What is an assignment of a lease?
The transfer of the tenant’s interest to another party. The assignee becomes the new tenant.
What is a sublease?
The tenant grants a new lease out of their own lease. Creates a headlease and sublease.
What formality is required for assignment?
Must be by deed and registered if the lease is registered.
What is an Authorised Guarantee Agreement (AGA)?
A guarantee given by an outgoing tenant for the obligations of their immediate assignee
What are the two legal relationships in leases?
Privity of contract: between original parties
Privity of estate: between current landlord and tenant
What applies in old leases (pre-1996)?
Original tenant/landlord remain liable for full term (privity of contract)
Current parties liable under privity of estate for covenants that touch and concern the land
What changed under LTCA 1995 for new leases?
Privity of contract abolished. Liability ends on assignment (s 5 for tenants; s 6 for landlords if released).
What does LTCA 1995, s 3 do?
Transmits benefit and burden of covenants automatically to assignees of lease and reversion, unless covenants are expressed to be personal.
When can a landlord sue a former tenant under LTCA 1995?
Only if an AGA was given on assignment. Damages only, no specific performance.
What indemnities are available to former tenants?
Express indemnity clause
Common law indemnity
Can landlords enforce covenants against subtenants?
Yes, for restrictive covenants
No, for positive covenants (unless direct contractual relationship is created)
What happens if a headlease is forfeited?
Sublease is automatically terminated, unless subtenant obtains relief.
What provisions of the LTCA 1995 apply to all leases?
s 17: Tenant Default Notice
s 18: Liability for Variations
s 19: Overriding Leases
What does Tenant Default Notice require?
Landlord must notify former tenant of arrears (fixed charge) within 6 months of it falling due.
What is a fixed charge?
Includes rent, service charges, insurance. Excludes damages and unascertained liabilities.
What is Liability of Variations?
Former tenants not liable for lease variations made after assignment that they could not have foreseen.
