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When leaseholders are in breach - some Do’s and Don’ts
When a leaseholder is in breach of the terms of a lease and you wish to enforce the lease terms, it is likely that you will wish to do so with reliance upon the landlord’s right of forfeiture. The reason for this is twofold:- Commonly, your ability under the contract (the lease) to recover any…
Injunctions - A Remedy for Breach of Covenant
For the most part, when dealing with breaches of leasehold covenants, the ultimate remedy that will be pursued if available to the landlord will be forfeiture of the lease. The draconian consequences of forfeiture mean that it is a most powerful remedy to force compliance by the defaulting…
A leaseholder who is in breach of their lease makes a partial payment. Does delaying the return of that payment waive the landlord's right of forfeiture?
This Legal Update discusses the case of Tropical Zoo Ltd v Hounslow LBC [2024] EWHC 1240 (Ch) . The case relates to an appeal made by Tropical Zoo Limited, the tenant, that Hounslow LBC, the landlord, had waived their right to forfeiture as a result of acceptance, or at least a delay in returning,…
Higher fines for landlords who breach Right to Rent rules
The government has significantly increased the fines issued to landlords or their agents for breaching the rules under the Right to Rent Scheme. These higher penalties come into force on 22 January 2024 so where a landlord or their agent breaches the Scheme on or after 22 January 2024, the new…
Can a new owner be liable for the previous leaseholder’s breaches or arrears?
It is often stated to us by landlords, agents and even some lawyers, that if a flat is sold and the former leaseholder departs owing monies (or is otherwise in breach at the point of sale) that his/her wrongs are in some way accepted and inherited by the purchaser. This is almost always not the…
Should Landlords/Managing Agents serve Section 20 Notice on Lessees in breach?
We are commonly asked by our clients and their managing agents, if the Landlord should serve a Section 20 Notice on any Lessee whose arrears (or other non-monetary matter) are currently with legal advisers and are as yet to be concluded. You are probably already aware that if the Landlord fails to…
Does waiver preclude a landlord from obtaining a determination of the breach?
As you will likely know, a landlord who wishes to forfeit a lease for a breach by the leaseholder (for any matter other than rent arrears) is required by s.168(2) Commonhold and Leasehold Reform Act 2002 (“CLRA”) (or by s.81 of the Housing Act 1996 where the breach is non-payment of service…
Modifying or discharging Restrictive Covenants - The Supreme Court considers a Developer’s “cynical” breach.
Alexander Devine Children’s Cancer Trust v Housing Solutions Ltd , is the first case in which the highest UK court has considered s.84(1) of the Law of Property Act 1925. So, I hear you say, what is Section 84(1) Law of Property Act 1925? S. 84(1) LPA 1925 provides the Upper Tribunal with a power…
FTT accepts £1.2m flat used as a brothel, but was the lessee in breach?
Some of you may have already read about the case of Marchiteli -v- 15 Westgate Terrace Limited (2020) UKUT 192 (LC) in the press. This is the case in which the First Tier Tribunal (FTT) found that the £1.2m flat owned by Ms Marchiteli (a solicitor) in Chelsea had been used as a brothel. Ms M…
Quiet Enjoyment - What does it mean?
Most leases will contain an express covenant by the landlord to provide Quiet Enjoyment . Where such a provision is not expressed it is in any event implied into the lease. There is a related obligation on a landlord not to Derogate from Grant and, although it is rare to find an express provision…
“But it wasn’t my fault!” - Can you pass on to your subtenant blame for breaches of the lease?
In this Legal Update we look at the question of blame and responsibility. The case in question is Dorrington Residential Limited v 56 Clifton Gardens Limited which came before the Upper Tribunal on appeal from the FTT and was decided just last week. It is a relatively simple case/(and common)…
How not to behave! - Unlawful eviction.
Whilst the following case of Wu v Chelmsford City Council (2023) EWCA Crim 338 should be a fairly obvious prime example of how NOT to behave as the landlord of a tenanted property, it is distressing how many times this sort of thing does occur or would occur, if some landlords carried through their…
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