F106LAW Leasehold Covenants

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A Leasehold covenant are a legal obligation of a contractural nature contained in a lease.

they are interpreted as a presumed intention of the parties at commencement of the contract

they can be created as an express covenant, specifically mentioned in the lease or

Implied by common law or statute

and may be real (touch and concerns land) or

Personal (collateral to the property demised)

they will be postive (obligation to do something) or

Negative (complied woth by doing nothing at all)

Absolute (not subject to any qualification) landlord can give permission, upon payment if required, can also be waived by the landlord

Restrictive and qualified (with the landlords consent (which may not be unreasonably withheld))

The usual implied covenants are owed by either the landlord or tenants depending on the relationship.


Quiet possession/enjoyment

Owen v. Gadd (1956) protection against the lawful or unlawful interference of property. scaffolding erected to obstruct tenants entrance.

Mira v. Aylmer Square (1990) damages for loss of rental income--interference from work being carried out by landlord

Non derogation from grant (landlord may not do anything that will frustrate the purpose for which the tenancy was granted)

Aldin v. Latimar Clark (1894) preventing premises from being used for the purpose for which they were let in this case it was preventing the free passage of air to a wood yard

Chartered Trust v.Davies (1994) a landlord can derogate from grant by not taking action against another tenant who is causing a nuisance, the premises had become less fit for purpose from when they were let by the actions of the pawnbrokers

in contrast

Petra investments v. Jeffrey Rogers plc (2000) was not considered derogation from grant, sales had been diappointing further declined by the arrival of the record store. commercial decisions that didnt turn out as successfully as hoped are not considered derogation from grant


to pay rent

to pay rates and taxes (unless expressly apportioned in some other way)

to insure

to permit the lessor to enter and view; needs to be expressly entered as there is no common right to do so.

implied obligation to maintnance and repair

the premises are used in a tenant like and proper manner

not commit waste (voluntarily (damaging or improving)or permissivly through neglect) all tenants are liable for voluntary waste but weekly tenants not for permissive waste

obligation to use in a tenant like manner lord denning in Warren v. Keen (1954) 'the tenant must take proper care of the place and in addition he must not damage the house wilfully or neglectfully.


Available to both


Specific performance (court order to carry out the obligation)

Injuction (to stop the breach from being carried out)

Available to landlord

Entry to do repairs (and reclaim cost)

forfieture (termination on tenant…


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