Leasehold Covenants

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Leasehold Covenants

This quiz is based on Chapter 8 of Land Law. The rules relating to leasehold covenants are sometimes very technical. In the case of those concerning the transfer of covenants on assignment it is important that you get to grips with the details of both the old and new rules, and that you remember that parts of the 1995 Act apply regardless of the date of the lease.

Which of the following is necessarily part of the lessor’s covenant to allow the tenant quiet enjoyment of the land?

The lessor will install sufficient soundproofing.

The lessor will not interfere with the tenant’s lawful use of the land.

The lessor will ensure that the tenant’s use of the land is reasonably pleasurable for the tenant.

The lessor will not allow the land to become unfit for the purpose for which it was demised.

The lessor will not terminate the lease without first obtaining a court order.

Clear selection

Which statute allows the lessor and lessee to determine the conditions upon which the tenant may assign the lease and which case considers the circumstances to be taken into account in determining whether a lessor has unreasonably withheld consent to assignment?

Section 19(1) Landlord and Tenant Act 1927 (as amended) and International Drilling Fluids Ltd v Louisville Investments (Uxbridge) Ltd [1986] Ch 513.

Section 19(1) Landlord and Tenant Act 1927 (as amended) and Warren v Keen [1954] 1 QB 15.

Sections 11-14 Landlord and Tenant Act 1985 and International Drilling Fluids Ltd v Louisville Investments (Uxbridge) Ltd [1986] Ch 513.

Sections 11-14 Landlord and Tenant Act 1985 and Warren v Keen [1954] 1 QB 15.

Clear selection

Which two of the following are not included among the ‘usual covenants’?

Quiet enjoyment (lessor).

Payment of rent (tenant).

Right of re-entry for breach of any covenant.

Right of re-entry for non-payment of rent.

To pay land taxes (tenant).

Repair (lessor).

Clear selection

True or false: the Landlord and Tenant (Covenants) Act 1995 applies only to leases granted after 1995?

True.

False.

Clear selection

Where a lessor assigns its interest in the reversion of a pre-1996 lease, the assignee will be bound by all of the lessor’s covenants having reference to the subject matter of the land by virtue of section ………… of the LPA 1925.

141

142

146

Clear selection

In 1993 Austen Ltd granted Jaya a 21-year lease of shop premises. In 1999 Jaya assigned the lease (with the consent of Austen Ltd) to Lotsobooks Ltd. Three years ago, Lotsobooks Ltd assigned the lease (also with the lessor’s consent) to Chaidee. Chaidee has paid no rent for over 18 months, and is probably insolvent. Yesterday, Jaya received a letter from Austen Ltd demanding payment of the arrears of rent. Which three of the following should you include in your advice to Jaya?

She should refuse to pay any of the arrears.

She should pay any rent that fell due within the last six months, but not any other sums.

She should consider exercising her right to an overriding lease.

She should consider seeking an indemnity from Lotsobooks Ltd.

She should pay the rent as it falls due, thereby entitling her to use the shop herself with the hope of mitigating her losses.

Clear selection

Which of the following rules was not introduced with respect to post-1995 leases by the Landlord and Tenant (Covenants Act) 1995?

The tenant is automatically released from any tenant’s covenants that touch and concern the land.

The lessor may be released from those lessor’s covenants that touch and concern the land with the consent of either the tenant or the Court.

User covenants will bind all occupants of the demised land.

Unless the lease prohibits absolutely assignment by the tenant, the lessor cannot unreasonably withhold its consent to an assignment of the lease.

Clear selection

Section 146 of the LPA 1925 regulates:

the lessor’s exercise of a right of re-entry or forfeiture for a breach of any type of tenant’s covenant.

the lessor’s exercise of a right of re-entry or forfeiture for a breach of most types of tenant’s covenant, except non-payment of rent.

the lessor’s exercise of a right of re-entry or forfeiture in respect of non-payment of rent.

the lessor’s rights to levy distress for non-payment of rent.

Clear selection

The general rule that a contract may be terminated if one party breaches its terms in such a way that it is clear that she no longer has any intention of being bound by it applies where a lessor’s breach of covenant is fundamental to the relationship between the landlord and the tenant.

True.

False.

Clear selection

One of the main reasons for introducing Commonhold was:

the Land Registry was unable to keep up with the registration of short leases.

the difficulty of enforcing obligations between the occupiers of multi-occupancy buildings with shared spaces.

the remedies available to occupiers of multi-occupancy buildings with shared spaces were being used excessively.

the Law Commission had recommended that a third legal estate was required to make owning a flat more straightforward.

it was felt that a third legal estate, albeit a qualified legal estate, was needed to enable tenants in common to hold their shares in law as well as beneficially.

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