Land Law - Leasehold Covenants (Exam Plan)

Land Law - Leasehold covenants

[STEP 1] Is the lease old or new?

- Different rules for old and new leases.
- Old: before 1 Jan 1996.
- New: on or after 1 Jan 1996.

The lease was granted on X, so rules for old / new leases apply.

[STEP 2] Identify breaches of covenant:

Tenant’s express covenants:

Express covenants appear in the lease. Here, there is an express tenant’s covenant to
[INSERT FROM BELOW].

Rent:
- Most leases contain an express covenant by the tenant to pay the rent in
advance. Landlords want the rent to be paid before the tenant occupies the
property.

Use:
- When the landlord places a restriction on how a tenant can use the property.

Not to assign or sub-let (alienation):
- The landlord could impose an ‘absolute covenant’ against assignments or sub-
lets. In this case, any attempt by the tenant to deal with the lease will be a breach
of covenant.
- Or the landlord could impose a ‘qualified covenant’ where assignments and sub-
lettings are prohibited unless the landlord’s consent or licence is obtained.
- The landlord cannot unreasonably withhold consent (s.19(1)(a) Landlord
and Tenant Act 1927);
- The landlord must either consent or give reasonable grounds for refusing
consent within a reasonable period (s.1 Landlord and Tenant Act 1988);
and
- For new leases on or after 1 Jan 1996 - the landlord is entitled to require
the tenant to enter into an authorised guarantee agreement (AGA)
(s.19(1A) LTA 1927, as amended by s.22 LT(C)A 1996).

, Landlord’s implied covenants: (usually made by landlords, and do not appear on
register)

Where there is no express provision in the lease contract, covenants may be implied.

Quiet enjoyment:
- When a landlord grants a lease to a tenant, there is, without any express
provision, an implied covenant by the landlord for quiet enjoyment to protect the
tenant from interference with their possession and enjoyment of the property
(Kenny v Preen).
- This can be breached by regular excessive noise, but does not apply to things
done before the grant of the tenancy (Southwark LBC v Mills).
- Protection from Eviction Act 1977:
- It is unlawful for the landlord to deprive the tenant of occupation if they do
so without proving they believed, or had reasonable cause to believe, the
tenant had ceased to reside there (s.1(2) Protection from Eviction Act
1977).
- It is an offence for the landlord to attempt to interfere with the tenant’s
peace or comfort only if the act is done with the intention of causing them
to give up occupation (s.1(3)).

Repair:
- For leases of dwellings granted on or after 24/10/1961 for a term of less than 7
years (s.13(1), LTA 1985), there is an implied covenant by the landlord/lessor to
keep in good repair and working order (under s.11):
- s.11(1)(a) - The structure and exterior of the dwelling house (e.g. drains,
gutters, and external pipes);
- (b) - Installations for the supply of water, gas and electricity, sanitation;
and
- (c) - Space heating and heating water.
- Lease of a dwelling-house means ‘a lease by which a building or part of a
building is let wholly or mainly as a private residence’ and dwelling-house means
‘that building or part of a building’ (s.16(b) LTA 1985).
- A lease which is terminable at the option of the lessor before seven years from
the commencement of the term is treated as a lease for a term of less than seven
years (s.13(1)(b) LTA 1985). Therefore, s.11 applies / does not apply.
- Any attempt by the lessor to contract out of the obligations of the Act is void
unless authorised by the county court (s.12 LTA).