ENFORCEABILITY OF LEASEHOLD COVENANTS
PRIVITY OF CONTRACT
• The legal relationship between the ORIGINAL contracting parties (landlord and
tenant) lasts for length pf the lease.
• Enforceable under rules of contract
PRIVITY OF ESTATE
• Legal Relationship between CURRENT LANDLORD AND CURRENT TENANT – lasts
whilst lease is invested in the tenant.
TWO SETS OF RULES – DEPENDANT ON YEAR LEASE WAS ENTERED INTO.
[except for retroactive provisions]
Before 1.1.1996 On or after 1.1.1996
• Privity of contract and privity of • LTA 1995 effectively abolished privity of
estate still very important. contract for all new leases.
• Continuing Privity of contract means • No longer liable for covenants for full
Liability of original landlord and term of original lease.
tenant continue for entire length of • When tenant sublets or assigns lease he
lease term – even if lease has been will generally AUTOMATICALLY obtain
assigned or sublet. an automatic release (s 5) from the
• Caused absurdities and hardship for tenant’s covenants upon assignment. –
both but mainly for tenants. so their liability CEASES
• Privity of estate means that the • S 6 the landlord must apply for release
tenant covenant that touch and from the tenant – s8 can go to get
concern the land in the old lease are release from court it tenant refuses.
enforceable by and against • If an excluded assignment (breach of
successor landlords and tenants. alienation covenant) tenant will still be
liable.
• LTCA s 3 provides AUTOMATIC
transmission of the benefit and burden
of all landlord and tenant covenants to
their successors.
• Exception to his is s3(6) ‘covenants
which are expressed to be personal to
any person’ this will not pass to a third
party.
• LTCA 1995 this exception isn’t defined
but appears to mean ‘expressly stated
to be between two named parties to
the lease.
• LTCA s 23(1) -Parties remain liable for
covenant breaches that occurred
DURING THEIR PEROD OF OCCUPATION.
• Edlington properties v JH Fenner –
tenant had claim for damages against
PRIVITY OF CONTRACT
• The legal relationship between the ORIGINAL contracting parties (landlord and
tenant) lasts for length pf the lease.
• Enforceable under rules of contract
PRIVITY OF ESTATE
• Legal Relationship between CURRENT LANDLORD AND CURRENT TENANT – lasts
whilst lease is invested in the tenant.
TWO SETS OF RULES – DEPENDANT ON YEAR LEASE WAS ENTERED INTO.
[except for retroactive provisions]
Before 1.1.1996 On or after 1.1.1996
• Privity of contract and privity of • LTA 1995 effectively abolished privity of
estate still very important. contract for all new leases.
• Continuing Privity of contract means • No longer liable for covenants for full
Liability of original landlord and term of original lease.
tenant continue for entire length of • When tenant sublets or assigns lease he
lease term – even if lease has been will generally AUTOMATICALLY obtain
assigned or sublet. an automatic release (s 5) from the
• Caused absurdities and hardship for tenant’s covenants upon assignment. –
both but mainly for tenants. so their liability CEASES
• Privity of estate means that the • S 6 the landlord must apply for release
tenant covenant that touch and from the tenant – s8 can go to get
concern the land in the old lease are release from court it tenant refuses.
enforceable by and against • If an excluded assignment (breach of
successor landlords and tenants. alienation covenant) tenant will still be
liable.
• LTCA s 3 provides AUTOMATIC
transmission of the benefit and burden
of all landlord and tenant covenants to
their successors.
• Exception to his is s3(6) ‘covenants
which are expressed to be personal to
any person’ this will not pass to a third
party.
• LTCA 1995 this exception isn’t defined
but appears to mean ‘expressly stated
to be between two named parties to
the lease.
• LTCA s 23(1) -Parties remain liable for
covenant breaches that occurred
DURING THEIR PEROD OF OCCUPATION.
• Edlington properties v JH Fenner –
tenant had claim for damages against
