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General
- No need to touch and concern land
- Refers to landlord covenants and tenant covenants
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Benefit and burden pass unless
- Covenant expressly personal
- Assignor no longer bound at time of assignment
- Relates to part of land not included in assignment
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T assigns lease
- Released from all covenants
- No longer at risk of being sued
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May be required to enter into authorised guarantee agreement
- If lease contains absolute or qualified covenant against assignment
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And is lawful to require AGA
- Test of reasonableness
- Only applies to immediate assignee
- Gives L right to sue
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L assigns reversion
- Must apply to tenant for release from covenants
- Serves notice requesting release
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Released if
- Tenant agrees
- Tenant fails to respond
- Courts find refusal unreasonable
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Subtenants
- Covenants which are restrictive as to user
- Can be enforced by L directly against subtenant
- For others, old rules apply
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Problem
- Particularly for commercial premises
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L may not unreasonably refuse consent for assignment
- s19 LTA 1927
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Or could face claim for damages from tenant
- LTA 1988
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Now deprived of right to recover from former tenant
- LTCA 1995
- except for AGA
- Led to inclusion of s22
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s22 LTCA 1995
- Introduces 5 new subsections into s19 LTA 1927
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Apply to qualifying lease only
- New tenancy of property not used wholly or mainly as single private residence
- Only apply when it is assigned, not sublet
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L can seek agreement with T
- May withhold consent in specified circumstances
- Or state conditions for consent
- eg could agree to impose AGA
- Normally agreed at time of original lease
- T can then not claim that withholding of consent is unreasonable
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Protecting former tenant
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Old tenancy
- Eg non-payment of rent
- Former tenant remains liable under privity of contract
- Must serve notice within 6 months
- Former tenant entitled to claim overriding lease for unexpired term
- Makes former tenant landlord of new tenant
- Can then forfeit lease and recover property
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New tenancy
- Former tenant will have been released from covenants
- L cannot sue former tenant unless AGA applies
- Default notice must be served within 6 months
- If AGA applies, tenant will be entitled to overriding lease