Q&As

The tenant of a commercial lease went into administration and subsequently liquidation, following which the lease was disclaimed by the liquidator. The former tenant has been settling section 17 of the Landlord and Tenant (Covenants) Act 1995 demands since then. The landlord continues to raise section 17 demands but, in view of the disclaimer, can the former tenant actually still seek an overriding lease? If an overriding lease cannot be sought, is it possible to make a vesting application or is it time barred?

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Published on LexisPSL on 23/08/2018

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • The tenant of a commercial lease went into administration and subsequently liquidation, following which the lease was disclaimed by the liquidator. The former tenant has been settling section 17 of the Landlord and Tenant (Covenants) Act 1995 demands since then. The landlord continues to raise section 17 demands but, in view of the disclaimer, can the former tenant actually still seek an overriding lease? If an overriding lease cannot be sought, is it possible to make a vesting application or is it time barred?

The tenant of a commercial lease went into administration and subsequently liquidation, following which the lease was disclaimed by the liquidator. The former tenant has been settling section 17 of the Landlord and Tenant (Covenants) Act 1995 demands since then. The landlord continues to raise section 17 demands but, in view of the disclaimer, can the former tenant actually still seek an overriding lease? If an overriding lease cannot be sought, is it possible to make a vesting application or is it time barred?

The Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) draws a distinction between old tenancies and new tenancies. The former are those which had been granted before it came into force on 1 January 1996, while the latter are those granted subsequently. The general rule following the assignment of a new lease, is that the former tenant is not liable for breaches of covenant once it takes effect (LT(C)A 1995, s 5(2)(1)(a)). In the case of an old lease, there is a modification of the rule that a tenant remains liable for the remainder of the term even following assignment, even where an assignee has also become liable. The modification is that the former tenant

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