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Leasehold Covenants
Defining Leasehold Covenants
📍 As well as being an estate in land, a lease is a contract. The terms of that
contract govern the obligations that parties have to each other.
A fixed- term lease can only be created expressly.
A periodic tenancy may be created expressly, or it may be implied.
Where a lease or a tenancy is expressly created, the parties can agree what obligations
each is to undertake.
📍 A leasehold covenant — a legally binding promise made between parties in a
lease agreement.
Covenants can be positive or negative — They define the obligations and rights of both
the landlord and tenant throughout the tenancy.
A positive covenant — requires a person to carry out work or spend money
E.g., a covenant to repair.
A negative (or restrictive) covenant — places restrictions on what a person may do
E.g., a covenant not to use the property for business purposes.
Lease covenants should be agreed through negotiations between the landlord and the
tenant.
Landlord’s Implied Covenants
Leasehold Covenants 1
, 📍 In the absence of an express obligation, certain covenants will be implied on
the part of the landlord.
Quiet Enjoyment
📍 In the absence of an express provision, a landlord's lease includes an implied
covenant for quiet enjoyment. This guarantees the tenant's undisturbed
possession of the property, free from substantial interference by the landlord.
Despite its name, the covenant for quiet enjoyment does not primarily address noise
complaints.
Instead, it protects the tenant against interference with the tenant’s possession of the
property by the landlord or persons who claim title through the landlord.
Kenny v Preen [1963] 1 QB 499, CA — If the landlord should threaten the tenant, such a
threat may amount to a breach of the implied covenant for quiet enjoyment.
Section 1(2) and (3) of the Protection from Eviction Act (PEA) 1977 — prevents a
landlord from unlawfully depriving the residential tenant of their occupation.
Any act likely to interfere with the residential tenant’s peace or comfort that is done
with the intention of causing them to give up occupation is an offence under the PEA
1977.
Southwark LBC v Mills [2001] 1 AC 1 — An implied covenant for quiet enjoyment does
not mean the absence of noise, although regular excessive noise may amount to a
substantial interference.
Repair
📍 The responsibility for repairing the property is comprised in the lease.
For residential properties with leases less than seven years, tenants cannot be held
responsible for repairs that fall under Section 11 of the Landlord and Tenant Act (LTA)
1985.
Leasehold Covenants 2
, Protects tenants from being burdened with major repair responsibilities in short-term
residential leases. The law places these obligations on the landlord instead.
The tenant's responsibilities are generally limited to using the property in a "tenant-
like manner," which means taking care of minor issues and not causing damage.
Warren v Keen [1954] 1 QB 15 — Denning LJ defined tenant-like manner as
“one of the little jobs about the place which a reasonable
tenant would do”
E.g., Tenant causes a sink to be blocked by their waste then this is a matter
they must put right
Where there is no express repairing obligation imposed on the landlord to repair, certain
obligations are implied, and the landlord is required under s 11 of the LTA 1985:
to keep in repair the structure and exterior of the dwelling- house;
to keep in repair and proper working order the installations for the supply of water,
gas, electricity and for sanitation; and
to keep in repair and proper working order the installations for space heating and
heating water.
Ravenseft Properties Ltd v Davstone (Holdings) Ltd [1980] QB 12 — If the landlord is
responsible for structural repairs, they must fix not only damages but also any inherent
construction defects necessary for the repair.
O’Brien v Robinson [1973] AC 912 — Landlord not liable to carry out a repair until they
have been notified of the need for repair.
Quick v Taff Ely Borough Council [1986] QB 809 — If there is no disrepair, the landlord
cannot be made liable under their implied covenant to repair.
NB Since tenancies under 3 years can be created without formality if they meet certain
conditions (LPA 1925, s 54(2)), implied terms are more common in informal, short-term,
or periodic tenancies. Conversely, formal written agreements and deeds typically cover
all essential landlord-tenant matters, so express terms are more common for long-term or
high-rent commercial leases.
Tenant’s Express Covenants
Leasehold Covenants 3
Leasehold Covenants
Defining Leasehold Covenants
📍 As well as being an estate in land, a lease is a contract. The terms of that
contract govern the obligations that parties have to each other.
A fixed- term lease can only be created expressly.
A periodic tenancy may be created expressly, or it may be implied.
Where a lease or a tenancy is expressly created, the parties can agree what obligations
each is to undertake.
📍 A leasehold covenant — a legally binding promise made between parties in a
lease agreement.
Covenants can be positive or negative — They define the obligations and rights of both
the landlord and tenant throughout the tenancy.
A positive covenant — requires a person to carry out work or spend money
E.g., a covenant to repair.
A negative (or restrictive) covenant — places restrictions on what a person may do
E.g., a covenant not to use the property for business purposes.
Lease covenants should be agreed through negotiations between the landlord and the
tenant.
Landlord’s Implied Covenants
Leasehold Covenants 1
, 📍 In the absence of an express obligation, certain covenants will be implied on
the part of the landlord.
Quiet Enjoyment
📍 In the absence of an express provision, a landlord's lease includes an implied
covenant for quiet enjoyment. This guarantees the tenant's undisturbed
possession of the property, free from substantial interference by the landlord.
Despite its name, the covenant for quiet enjoyment does not primarily address noise
complaints.
Instead, it protects the tenant against interference with the tenant’s possession of the
property by the landlord or persons who claim title through the landlord.
Kenny v Preen [1963] 1 QB 499, CA — If the landlord should threaten the tenant, such a
threat may amount to a breach of the implied covenant for quiet enjoyment.
Section 1(2) and (3) of the Protection from Eviction Act (PEA) 1977 — prevents a
landlord from unlawfully depriving the residential tenant of their occupation.
Any act likely to interfere with the residential tenant’s peace or comfort that is done
with the intention of causing them to give up occupation is an offence under the PEA
1977.
Southwark LBC v Mills [2001] 1 AC 1 — An implied covenant for quiet enjoyment does
not mean the absence of noise, although regular excessive noise may amount to a
substantial interference.
Repair
📍 The responsibility for repairing the property is comprised in the lease.
For residential properties with leases less than seven years, tenants cannot be held
responsible for repairs that fall under Section 11 of the Landlord and Tenant Act (LTA)
1985.
Leasehold Covenants 2
, Protects tenants from being burdened with major repair responsibilities in short-term
residential leases. The law places these obligations on the landlord instead.
The tenant's responsibilities are generally limited to using the property in a "tenant-
like manner," which means taking care of minor issues and not causing damage.
Warren v Keen [1954] 1 QB 15 — Denning LJ defined tenant-like manner as
“one of the little jobs about the place which a reasonable
tenant would do”
E.g., Tenant causes a sink to be blocked by their waste then this is a matter
they must put right
Where there is no express repairing obligation imposed on the landlord to repair, certain
obligations are implied, and the landlord is required under s 11 of the LTA 1985:
to keep in repair the structure and exterior of the dwelling- house;
to keep in repair and proper working order the installations for the supply of water,
gas, electricity and for sanitation; and
to keep in repair and proper working order the installations for space heating and
heating water.
Ravenseft Properties Ltd v Davstone (Holdings) Ltd [1980] QB 12 — If the landlord is
responsible for structural repairs, they must fix not only damages but also any inherent
construction defects necessary for the repair.
O’Brien v Robinson [1973] AC 912 — Landlord not liable to carry out a repair until they
have been notified of the need for repair.
Quick v Taff Ely Borough Council [1986] QB 809 — If there is no disrepair, the landlord
cannot be made liable under their implied covenant to repair.
NB Since tenancies under 3 years can be created without formality if they meet certain
conditions (LPA 1925, s 54(2)), implied terms are more common in informal, short-term,
or periodic tenancies. Conversely, formal written agreements and deeds typically cover
all essential landlord-tenant matters, so express terms are more common for long-term or
high-rent commercial leases.
Tenant’s Express Covenants
Leasehold Covenants 3
