Q&As

A freeholder enters into an agreement for lease (AFL) with a third party. The agreement for lease is expressed to be personal. The third party registers a unilateral notice. If the freeholder then sells the land to a purchaser, is the purchaser liable or would the third parties’ remedies only be against the original freeholder. Specific performance would presumably not be available as it is no longer possible and the third party could not force the purchaser to grant the lease?

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Published on LexisPSL on 10/03/2020

The following Property Q&A provides comprehensive and up to date legal information covering:

  • A freeholder enters into an agreement for lease (AFL) with a third party. The agreement for lease is expressed to be personal. The third party registers a unilateral notice. If the freeholder then sells the land to a purchaser, is the purchaser liable or would the third parties’ remedies only be against the original freeholder. Specific performance would presumably not be available as it is no longer possible and the third party could not force the purchaser to grant the lease?
  • Effect of personal landlord covenant
  • Effect of registering a unilateral notice

We have assumed that:

  1. the agreement for lease (AFL) is a new tenancy for the purposes of the Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995)

Effect of personal landlord covenant

LT(C)A 1995, s 28(1)(b) includes an AFL within the definition of ‘tenancy’. The result is that a landlord covenant which is expressed (in whatever terms) to be personal to the named landlord giving that covenant does not bind that landlord's successors in title (LT(C)A 1995, s 3(6)).

This can be particularly significant where an AFL includes extensive obligations on the part of the named landlord (eg to construct or carry out major works to the premises). In that situation, th

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