Leases - Remedies & Termination Flashcards
(19 cards)
What remedies does a landlord have for breach of rent covenant?
Action for debt (6-year limit)
Forfeiture
Commercial Rent Arrears Recovery (CRAR) – for commercial premises, 7+ days’ rent arrears required
What remedies are available for breach of non-rent covenants?
Injunction
Specific performance (rare)
Damages (reversionary loss may be minimal)
Forfeiture
What are the six ways a lease can end?
Effluxion of time
Notice to quit
Break clause
Surrender
Merger
Forfeiture
What is a break clause?
A provision allowing one or both parties to end the lease early by giving notice, e.g., “either party may end this lease after 5 years with 6 months’ notice.”
What is the difference between surrender and merger?
Surrender: Lease handed back to landlord with consent
Merger: Tenant acquires freehold reversion, lease is absorbed
What is forfeiture?
Landlord’s right to terminate lease early due to tenant’s breach.
Is a forfeiture clause required in legal leases?
Yes. It is also called a legal right of re-entry
Is forfeiture implied in equitable leases?
Yes, for non-payment of rent.
What constitutes waiver of the right to forfeit?
Knowledge of the breach + unequivocal act affirming the lease (e.g., demanding rent).
How is forfeiture exercised?
Peaceable re-entry (non-residential only)
Court order (required for residential premises, Protection from Eviction Act
What is the procedure for forfeiture for non-payment of rent?
- Confirm breach
- Check forfeiture clause
- Check for waiver
- Serve formal demand (unless waived in lease)
- Re-enter or apply to court
- Tenant may apply for relief
What is relief from forfeiture?
Court’s discretion to allow lease to continue if arrears + costs are paid. Must apply within 6 months if re-entry used.
Can subtenants apply for relief?
Yes, and the court can vest the headlease in the subtenant (not for longer than sublease term).
What is the procedure for forfeiture for other breaches (e.g., repair)?
- Confirm breach
- Check forfeiture clause
- Check for waiver
- Serve LPA 1925, s 146 Notice
- Re-enter or apply to court
- Tenant may apply for relief
What must a s 146 notice include?
Specify breach
If remediable, allow time to remedy
Optionally require compensation
What is the test for “capable of remedy”?
Whether the landlord can be fully compensated
What are examples of breaches incapable of remedy?
Unauthorised assignment or subletting
Immoral/illegal use
What if the lease contains a repair covenant?
Additional protections under:
LP(R)A 1938 (leases ≥7 years)
LPA 1925, s 147 (court may relieve tenant from internal decoration obligations)
What are some factors affecting relief?
Nature and wilfulness of breach, landlord’s motive, whether breach has been rectified, tenant’s behaviour
