Leasehold Covenants

LEASEHOLD COVENANTS – REVISION NOTES


When a lease is created, it creates:
- An interest in land; and
- A number of contractual obligations between the parties (Leasehold Covenants)

These contractual terms are known as leasehold covenants.

Leasehold Covenant – Covenant is a promise made by landlord and tenant
enforceable by law. These are contractual obligations.

Covenants can be:
- Express (Usually contained in the lease); or
- Implied by law

Landlord Covenants:
- Quiet enjoyment
- Not to derogate from grant
- Repair

Tenant Covenants:
- Pay rent
- Repair
- Waste
- Not to assign / sub-let



Quiet Enjoyment – A covenant for quiet enjoyment will be implied into every lease.

Quiet does not refer to the absence of noise, it means “without interference”. Noise
can be a breach of the covenant, but it does not mean to be noise

Southwark LBC v Mills [2001] AC 1 at 22 – (Lord Millet - Any substantial
interference with the ordinary and lawful enjoyment of the land)
The covenant will “cover any substantial interference with the ordinary and lawful
enjoyment of the land”

Lavender v Betts [1942] 2 All ER 72 – (Removing Windows, Doors / Breach of
quiet enjoyment)
Landlord was trying to remove windows and doors which was held to be a breach of
a quiet enjoyment.