leasehold

Question 1

question about nature of interest

Answer 1

• a lease is one of the 2 legal estates capable of subsisting at law
• essential characteristics for a lease

Question 2

essential characteristics for a lease

Answer 2

• exclusive possession- street v mountford
• certainty of duration- lace v chandler
• formalities- need a deed (s52(1) LPA, deed needs to satisfy requirements in s1 LPMPA 89 (witnesses, and deed on face of it)
• or equitable lease- s2 LPMPA (signed, in writing, incorporate all terms)

Question 3

street v mount ford

Answer 3

intended to make a license but was a lease because of exclusive possession

Question 4

lace v chandler

Answer 4

• for the period of the war wasnt a lease because no certainty of duration

Question 5

question about rent arrears- new lease

Answer 5

• mention it is a new lease- before 1st jan 1996, when LTCA 95 came into force
• s5 LTCA
• S16 LTCA
• S17 LTCA
• OR S3 LTCA

Question 6

S5 LTCA

Answer 6

• automatically releases the outgoing tenant from liability for breaches of Cov after assignment of lease so prima facie, outgoing T is not liable

Question 7

s16 LTCA

Answer 7

• but may be liable as a guarantor if an AGA was entered in to with the landlord on assignment of the lease

Question 8

s17 LTCA

Answer 8

• if action is taken against a former tenant, S17 LTCA applies as rent is a “fixed charge”
• notice must be served by L on T
• max 6 months arrears can be claimed

Question 9

or s3 LTCA

Answer 9

• automatic transmission of ben and burd of covs- so landlord can go after assignee

Question 10

question about rent arrears- old lease

Answer 10

• mention it is an old lease (pre 1st jan 96)
• privity of contract between L and T
• that and the effect of s79 LPA means T continues to be liable for breach of Cov
• moule v garrett
• s77 LPA

Question 11

moule v garrett

Answer 11

• t can claim indemnity directly from assignee under this rule but it is unlikely to be successful as they are probs in financial difficulties

Question 12

s77 LPA

Answer 12

• t can also claim against the person who assigned to the final assignee under the implied statutory indemnity

Question 13

privity of estate

Answer 13

• landlord can sue the assignee directly

Question 14

question about refusing consent for assignment

Answer 14

• nature of alienation covenant- probs gonna be qualified- meaning it can only be assigned with the landlords consent
• s19(1) LTA 27
• if it is a new lease and a commercial lease
• is refusal of consent reasonable?

Question 15

s19(1) LTA

Answer 15

• notwithstanding an agreement to the contrary, consent cannot be unreasonably withheld

Question 16

new and commercial lease

Answer 16

• may be circs in which consent to assignment may be withheld and/or conditions to which consent to an assignment may be made which will not be subject to the statutory reasonableness test (s22 LTCA)
• if an AGA needs to be provided for consent then that would fall within the exception

Question 17

is refusal of consent reasonable?

Answer 17

• international drilling fluids
• ashworth Frazer ltd

Question 18

international drilling fluids

Answer 18

• purpose of qualified Cov is to protect L from having property used in an undesirable way or have an undesirable tenant
• not entitled to refuse on grounds with nothing to do with L/T relationship
• can refuse on the grounds of the purpose A will use the property for, even if its not forbidden in the lease

Question 19

ashworth Frazer ltd

Answer 19

• whether or not consent has been reasonably withheld is a question of fact in each case

Question 20

remedies for non-payment of rent

Answer 20

• l can sue for debt subject to limitation period
• if new lease- aga- can go against guarantor- good option if assignee doesnt have the money- s17 LTCA- cant get more than 6 months rent- mention rent is a fixed charge
• for commercial properties
• forfeiture (same as other Cov breaches)

Question 21

commercial properties non payment

Answer 21

• only available against t in possession
• min 7 days rent arrears, min 7 days notice of intention to recover
• notice must be served by authorised enforcement agent
• but by giving notice it gives T time to remove goods so can be ineffective

Question 22

remedies for breach of Cov?

Answer 22

• remedy of forfeiture- effect is to bring lease to an end- for it to be available a provision must be expressly included in the lease
• injunction
• specific performance

Question 23

s146 LPA- breach of Cov other than rent

Answer 23

• notice specifying breach
• requiring breach to be rectified within a reasonable time
• setting out compensation (if desired)

Question 24

is the breach remediable ?

Answer 24

• expert clothing
• savva v houssein
• scala v Forbes

Question 25

expert clothing

Answer 25

- can the harm done be remedied by compliance together with compensation?

Question 26

savva v houssein

Answer 26

- breaches of restrictive covs may be capable of remedy

Question 27

scala v Forbes

Answer 27

- breaches of assignment covs are not capable of remedy

Question 28

central estates v woolgar

Answer 28

t convicted of running a brothel l learnt of this and wanted to end the lease but a clerk wasnt aware of this and sent out a rent demand so held that l had waived the breach

Question 29

remedies if the breach isn't remediable

Answer 29

- can reenter by peaceable reentry - or court order (the advisable option) - cant reenter if part/wholly a dwelling - can also get an injunction (equitable remedy)