This Practice Note sets out the liability of an incoming tenant, on assignment of a lease, for pre-existing breaches of a lease committed by its predecessor. It covers the consequences for the incoming tenant in respect of continuing and once-and-for-all breaches.

For guidance in respect of the liability of an incoming landlord, on assignment of a reversion, for pre-existing breaches of an occupational lease committed by its predecessor, and the position in respect of recovery of pre-existing rent arrears by the incoming landlord, see Practice Note: Incoming landlord’s liability for pre-existing breaches, and for a summary of the position in respect of the transmission of benefit and burden on assignment generally, see Practice Note: Quick guide to benefit and burden of covenants on assignment.

The Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) provides that (generally) any lease granted on or after 1 January 1996 creates a ‘new tenancy’ for the purposes of LT(C)A 1995. A lease granted before that date is an ‘old tenancy’.

As from completion of the assignment of a lease an incoming