LPC- REAL ESTATE
LEASES
Table of Contents
Leasehold covenants- answering an exam question.....................................................................2
Leasehold management...............................................................................................................3
Structure to amend the lease clause in exam...............................................................................4
Lease Alienation...........................................................................................................................5
CONVEYANCING PROCEDURE: ASSIGNMENT OF A LEASE.............................................................8
LEASEHOLD LICENCES.................................................................................................................10
ASSIGNMENT OF A LEASE...........................................................................................................12
LEASE TERMINATION AND LL REMEDIES.....................................................................................13
DEALING WITH A TENANT’S NON-PAYMENT OF RENT................................................................16
, Leasehold covenants- answering an exam question
Structure to answering questions about leasehold covenants
1. Identify the issues:
Structure
Who is obliged to repair?
Is arcadian responsible?
Is there timescale for the works to be carried out?
Does CDS still have to pay rent when the works are carried out?
State the lease clause number
Paraphrase the clause
Explain the consequences of the clause by applying to the facts
2. Check the definitions under the lease to identify whether the lease covenant covers it
, Leasehold management
Considerations for draft lease in part
Rights, reservations and exceptions that should be considered when drafting and
approving lease in part:
1. Are there provisions for shared access?
2. If there is a service charge- will the tenant be making use of the services and what
are the services?
3. What are the repairing obligations?
4. Are there car parking spaces- does it form part of the lease?
5. Are there rights for the landlord to enter to check for repair and does this extend to
lettable units to avoid disrepair?
Services at the discretion or ‘reasonably see fit’
1. If the rights seem too one sided seek to re-draft.
2. Solicitor should aim to remove subjectivity
3. Check the hours for inspection or repair- are they going to be too restrictive?
‘keep the property in full repair’
Seek clarification as full repairing obligations bear the repairing costs to the tenant to
ensure the property is in a good state of repair (Post Office v Aquarius Properties Ltd)
if the property is in disrepair the tenant may have the obligation to get it back to good state
(Proudfoot v Hart)
tenant’s solicitor should seek to limit the repair obligation- schedule of condition
Schedule of condition- to limit the tenant’s repairing obligations- mainly used where the
property is in poor condition to begin with. The schedule should include photographs and
detailed descriptions of the condition of the property and should be signed by both parties.
Is there a gap of responsibility- such as unlet units? If so, insert caveat that the
landlord is responsible for the repair and upkeep of unlet units.
LEASES
Table of Contents
Leasehold covenants- answering an exam question.....................................................................2
Leasehold management...............................................................................................................3
Structure to amend the lease clause in exam...............................................................................4
Lease Alienation...........................................................................................................................5
CONVEYANCING PROCEDURE: ASSIGNMENT OF A LEASE.............................................................8
LEASEHOLD LICENCES.................................................................................................................10
ASSIGNMENT OF A LEASE...........................................................................................................12
LEASE TERMINATION AND LL REMEDIES.....................................................................................13
DEALING WITH A TENANT’S NON-PAYMENT OF RENT................................................................16
, Leasehold covenants- answering an exam question
Structure to answering questions about leasehold covenants
1. Identify the issues:
Structure
Who is obliged to repair?
Is arcadian responsible?
Is there timescale for the works to be carried out?
Does CDS still have to pay rent when the works are carried out?
State the lease clause number
Paraphrase the clause
Explain the consequences of the clause by applying to the facts
2. Check the definitions under the lease to identify whether the lease covenant covers it
, Leasehold management
Considerations for draft lease in part
Rights, reservations and exceptions that should be considered when drafting and
approving lease in part:
1. Are there provisions for shared access?
2. If there is a service charge- will the tenant be making use of the services and what
are the services?
3. What are the repairing obligations?
4. Are there car parking spaces- does it form part of the lease?
5. Are there rights for the landlord to enter to check for repair and does this extend to
lettable units to avoid disrepair?
Services at the discretion or ‘reasonably see fit’
1. If the rights seem too one sided seek to re-draft.
2. Solicitor should aim to remove subjectivity
3. Check the hours for inspection or repair- are they going to be too restrictive?
‘keep the property in full repair’
Seek clarification as full repairing obligations bear the repairing costs to the tenant to
ensure the property is in a good state of repair (Post Office v Aquarius Properties Ltd)
if the property is in disrepair the tenant may have the obligation to get it back to good state
(Proudfoot v Hart)
tenant’s solicitor should seek to limit the repair obligation- schedule of condition
Schedule of condition- to limit the tenant’s repairing obligations- mainly used where the
property is in poor condition to begin with. The schedule should include photographs and
detailed descriptions of the condition of the property and should be signed by both parties.
Is there a gap of responsibility- such as unlet units? If so, insert caveat that the
landlord is responsible for the repair and upkeep of unlet units.
