Leasehold Covenants

Introduction

When a party to a lease breaks one of its covenants, the law provides a structured set of **remedies** whose availability turns first and foremost on the **nature of the breach**. Land law draws a fundamental distinction between **breach of the covenant to pay rent** and **breach of any other (non-rent) covenant**. This chapter, part of **Unit 6 — Leases**, sets out the landlord's remedies (debt action, **CRAR**, **forfeiture for non-payment of rent**, pursuit of former tenants and guarantors under **s.17 LTCA 1995**; and for non-rent breaches damages, specific performance, injunction, **self-help under Jervis v Harris**, and **forfeiture under s.146 LPA 1925**), the regimes for **relief from forfeiture**, the additional protections for **long residential leases under the CLRA 2002**, and the **tenant's remedies** against a defaulting landlord.

Assessment focus

The SRA FLK2 syllabus requires detailed knowledge of the remedies available to a landlord and to a tenant when the other is in breach of a leasehold covenant. For the landlord, you must know (1) the remedies for **non-payment of rent** — debt action, Commercial Rent Arrears Recovery (**CRAR**), forfeiture for non-payment, pursuit of former tenants/guarantors under **s.17 LTCA 1995**; (2) the remedies for **non-rent breaches** — damages, specific performance/injunction, self-help under **Jervis v Harris**, and forfeiture under **s.146 LPA 1925**; and (3) the **relief from forfeiture** regimes, including the tenant's right to seek relief in the High Court or county court and the additional protection for long leases under **s.168 CLRA 2002**. For the tenant, you must know damages, specific performance, and (exceptionally) set-off against rent. Questions are single best answer questions set in realistic client scenarios; you will be expected to **apply** these remedies, not merely recall them.

Study tips

1) Always classify the breach first: **rent v non-rent**. **s.146 LPA 1925 applies only to non-rent breaches** (s.146(11)). 2) For rent arrears on a **commercial** lease, the quick self-help remedy is **CRAR** — commercial only, pure rent only, minimum 7 days' net unpaid rent, 7 clear days' notice. 3) Memorise the **four requirements of a valid s.146 notice**: specify the breach; require remedy (if remediable); require compensation (if claimed); allow a reasonable time. 4) Distinguish **remediable v irremediable** breaches — Scala House (assignment, irremediable), Expert Clothing (late performance, remediable), Akici (retrievable-harm test). 5) Remember **Billson**: relief under s.146(2) is available even after peaceable re-entry. 6) For a **long residential lease**, always check **s.167** (£350 / 3-year threshold) and **s.168 CLRA 2002** (breach admitted or determined by the FTT).