Q&As

X owns a property with solar panels on the roof which were subject to a lease in favour of Y. Y went into liquidation and the lease was disclaimed. Z asserts that the lease was transferred to them by Y (in breach of the lease). X considers that the panels are a fixture and are now owned by X following the disclaimer. Who owns the panels?

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Published on LexisPSL on 03/03/2020

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

  • X owns a property with solar panels on the roof which were subject to a lease in favour of Y. Y went into liquidation and the lease was disclaimed. Z asserts that the lease was transferred to them by Y (in breach of the lease). X considers that the panels are a fixture and are now owned by X following the disclaimer. Who owns the panels?
  • Possible assignment in breach of lease
  • Insolvency and disclaimer
  • Ownership of fixtures

Possible assignment in breach of lease

Certain tenancies are incapable of assignment (for example a tenancy at will and certain secure tenancies). In most cases, however, a lease is capable of assignment but there are covenants against doing so unless certain conditions are met. An assignment in breach of a covenant is nevertheless an effective assignment (Old Grovebury Manor Farm v W Seymour Plant Sales & Hire). Therefore, if the lease was validly assigned by the company (observing any necessary formalities) before the disclaimer, then the assignment would be effective to pass the lease to the assignee. The breach of covenant may give rise to rights in favour of the landlord, for ex

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