| Commentary

231 Note on disclaimer of leases

| Commentary

231 Note on disclaimer of leases

Applying the above principles, the effect of disclaimer is to entirely determine the lease and accelerate the landlord's reversion. Unlike forfeiture, however, it does not affect the rights of third parties claiming under the lessee, such as mortgagees and sub-tenants. Accordingly, a mortgagee (and less frequently a sub-lessee) may well make an application for a vesting order, vesting the lease in him, in order to preserve his commercial interest in the property. If he does, the vesting will be on terms that he accepts the covenants in the disclaimed lease; in effect he ‘stands

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