The following Property guidance note provides comprehensive and up to date legal information covering:
There can be only one lease at a time giving a right to possession and occupation of property. Consequently, if a landlord subsequently grants a lease of the same property to someone other than the occupational tenant, it will take effect as a concurrent lease or as a lease of the reversion.
A concurrent lease might be used as part of the security package for property finance, providing the grantee of that lease with a right to receive rents from the occupational tenant during its term.
If the term of the concurrent lease is longer than the occupational lease, the grantee of the concurrent lease will become entitled to possession and occupation once the occupational lease comes to an end.
Concurrent leases granted by deed before 1 January 1996 took effect as a temporary assignment of the landlord's reversion. The landlord, having assigned its interest for the duration of the concurrent lease, was not entitled to receive rents and could not enforce covenants. For the term of the concurrent lease the new tenant stepped into the shoes of the landlord and became entitled to receive rents from, and to enforce tenant covenants against, the occupational tenant to the extent that they were capable of running with the reversion. This meant that it was
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