Introduction to Leases

Introduction

This chapter brings together two closely linked topics from the **Unit 6: Leases** section of the syllabus: (1) the **leasehold covenants** themselves — the express and implied obligations of landlord and tenant — and (2) the rules governing **who is liable on those covenants** when the lease, or the reversion, is transferred. You will study the key **implied covenants** (quiet enjoyment, non-derogation from grant, fitness and repair), the most common **express covenants** (rent, repair, user, alienation, insurance), the common law rules of **privity of contract** and **privity of estate**, and the **Landlord and Tenant (Covenants) Act 1995** regime for leases granted on or after **1 January 1996**.

Assessment focus

This chapter addresses two closely linked topics from the **SRA FLK2 syllabus**: (1) the **leasehold covenants** — the express and implied obligations of landlord and tenant — and (2) the rules governing **who is liable on those covenants** when the lease, or the reversion, is transferred. You must know **(a)** the key implied covenants (quiet enjoyment, non-derogation from grant, fitness and repair); **(b)** the most common express covenants (rent, repair, user, alienation, insurance); **(c)** the common law rules of **privity of contract** and **privity of estate**; **(d)** the **Landlord and Tenant (Covenants) Act 1995** regime for leases granted on or after 1 January 1996; and **(e)** the statutory controls on qualified covenants against assignment under **s.19 LTA 1927** and **s.1 LTA 1988**.

Study tips

1) Memorise the **three landlord implied covenants** (quiet enjoyment, non-derogation, and the statutory repair/fitness covenants under ss.11 and 9A LTA 1985) and the **three tenant implied obligations** (pay rent, tenant-like use, no waste). 2) The crucial date is **1 January 1996**: **old leases** (before) are governed by privity of contract/estate and ss.141–142 LPA 1925; **new leases** (on or after) by the **LTCA 1995**. 3) Under the LTCA 1995, **s.5** automatically releases the outgoing tenant on assignment; **s.16** allows the landlord to require an **AGA** guaranteeing the immediate assignee **only**. 4) **Section 17** — a landlord must serve a 'problem notice' on a former tenant within **6 months** of the fixed charge becoming **due**; miss the window and the claim is lost. 5) **s.19(1) LTA 1927** converts a **qualified** covenant against alienation into a **fully qualified** one (consent not to be unreasonably withheld) — it does **not** apply to **absolute** covenants.