The following Property Disputes practice note provides comprehensive and up to date legal information covering:
The Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) gives tenants, and their guarantors, an automatic release from tenant covenants of the tenancy on assignment of the lease. By contrast there is no automatic release for the landlord under LT(C)A 1995. Instead, landlords may apply to their tenants, under LT(C)A 1995, ss 6–8, for release from landlord covenants of the tenancy on assigning the reversion, while former landlords who decided not to apply for release, or who missed the deadline, may apply next time the reversion is assigned. These statutory provisions apply only to new tenancies and so do not benefit the parties:
to leases granted before 1 January 1996, or
to leases granted after 31 December 1995 but under an agreement for lease, option or court order made before that date
It is not always sensible for landlords to seek a release from covenants in a multi-let building or scheme. This is because as well as being released from the burden of its covenants, the landlord loses the benefit of tenant covenants in the leases concerned.
A problem might arise if the landlord remains bound by its covenants under some of the leases, either because they are old tenancies or because some tenants successfully oppose the landlord’s release (see Procedure and Practice Note: Quick guide to
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