Preliminary considerations

When determining a party’s liability after the assignment of a lease or its reversion, there are two preliminary considerations:

1. •

   is the liability personal to that party—if it is, then the liability will not bind that party’s successor(s) in title (see Personal covenants below)

2. •

   if the liability is not personal, does it arise under a ‘new tenancy’ (as that term is defined under section 1 of the Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995)) or an ‘old tenancy’ (being any other tenancy)

Where the lease is an old tenancy, the Rules for determining where liability lies after an assignment are to be found in a combination of Common law and statute (namely the Law of Property Act 1925 (LPA 1925)): see Liability under an ‘old’ tenancy below. Note, however, that LT(C)A 1995, ss 17 and 18 impose restrictions on the landlord’s ability to enforce that liability (see Enforcement of liability—former tenant or their guarantor) below.

Where the lease is a new tenancy, LT(C)A 1995 establishes a Statutory scheme