Leasehold Covenants

Leasehold Covenants

Covenants included in a lease could be:

- upkeep of property 

- rent

-bills

- not to invalidate insurance policy

- not to cause a nuisance 

These covenants may be implied or express 

to be a deed must comply with S2 LP(MP)A 1989

Covenants contained in a typical lease

a) A lease is an interest in land and a contract between the parties 

b) covenants may be positive or negative ('restrictive') 

c) covenants may be implied or express (Passing of covenants is in large group 6) 

4. But what if either or both of the original contracting parties want to sell their interest to someone else?

a) Will the burden of the tenants covenant pass to a new tenant?

b) will the benefit of the tenants covenant pass to a new landlord?

c) or, who is liable and who can sue?

There are two different sets of rules for OLD and NEW leases

OLD LEASES

a) old rules for leases granted before 1 January 1996

b) New rules for leases granted on or after 1st January 1996- see Landlord and Tenant (Covenants) Act 1995 ("LT(C)A1995) 

Enforceability of covenants under old leases 

a) Original parties liable for the duration of the lease

b) Tenant- burden of tenants covenant and benefit of landlords covenants pass to the incoming tenant under Spencers Case (1583) if the covenant "touch and concern" the land (real covenant - P&A SWIFT INVESTMENTS V CESG) 

c) Landlord- benefit of tenant's covenant passes under s141 LPA 1925 and…