Q&As

In relation to a leasehold title, what is an overriding lease relating to the property. How does this affect the title and how can the issue be rectified?

read titleRead full title
Produced in partnership with Martin Codd of Penningtons Manches Cooper
Published on LexisPSL on 16/03/2020

The following Property Disputes Q&A produced in partnership with Martin Codd of Penningtons Manches Cooper provides comprehensive and up to date legal information covering:

  • In relation to a leasehold title, what is an overriding lease relating to the property. How does this affect the title and how can the issue be rectified?
  • Lease of the reversion
  • Effect of the Landlord and Tenant (Covenants) Act 1995
  • Effect on forfeiture and term?
  • Overriding lease
  • In relation to a leasehold title, what is an overriding lease relating to the property. How does this affect the title and how can the issue be rectified?
  • Defects on title

In relation to a leasehold title, what is an overriding lease relating to the property. How does this affect the title and how can the issue be rectified?

The question does not clarify if this is an overriding lease granted to a former tenant or guarantor under section 19 of the Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) or not.

If so, then this can be described as a lease of the reversion. This is to be contrasted with a reversionary lease. This response explains these different types of leases.

Sometimes the expression ‘concurrent lease’ is used and this has the same meaning as a ‘lease of the reversion’.

Lease of the reversion

The reversion is the landlord’s interest (whether leasehold or freehold) in the property which is subject to an existing lease or leases. A lease of the reversion is therefore a lease granted out of that interest and will be granted subject to and with the benefit of the existing lease(s). If the new lease is for a term of more than seven years then it must be registered at the Land Registry.

Example:

So if A grants a lease to B, being the occupational tenant and the next day then grants a lease of the reversion to C then C becomes the intermediate landlord to B and C,’s lease sits above B’s lease. C’s lease is subject

Related documents:

Popular documents