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If the landlord were to accept rent payments from the administrator, there are two main issues to consider: • what is the impact on the right of forfeiture? • will the court lift the moratorium and allow forfeiture of the lease? Forfeiture The landlord's right of forfeiture will depend on the exact terms of the lease and we assume for the purposes of this question that the landlord is entitled to forfeit the lease based on the appointment of an administrator to the tenant company. It is possible for a landlord to waive their
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Where goods are left on the premises the landlord becomes an involuntary bailee of those goods. In some cases, the question of how such goods should be dealt with is provided for in the lease. Where this is not the case, the landlord’s rights and obligations are governed by the Torts (Interference with Goods) Act 1977. The
Q&As
When a former tenant remains in occupation after the expiry of a lease, the question of their status may arise. Usually, where the landlord consents to the ongoing occupation, the possibilities are that the occupier is a tenant at will or a periodic tenant. The distinction is critically important because the latter attracts security under the Landlord and Tenant Act 1954 (LTA 1954) but the former does not. This subject is discussed in Practice Note: Periodic tenancies — Tenancy at will or periodic tenancy? In the absence of other relevant surrounding circumstances, the payment of rent on a periodic basis gives rise to a presumption
Q&As
By section 24 of the Landlord and Tenant Act 1954 (LTA 1954), a tenancy to which LTA 1954 applies will not come to an end unless terminated in accordance with the Act. The methods of termination permitted by LTA 1954 are
Q&As
Restrictions against the issuing of winding-up petitions were introduced by the Corporate Insolvency and Governance Act 2020 (CIGA 2020) as a result of the effect on the economy of the coronavirus pandemic and subsequent lockdown. The government introduced various ways in which businesses and their employees were protected to some extent from the effect of the pandemic including the furlough scheme and bounce back loans. Other restrictions changed aspects of insolvency legislation such as that regarding wrongful trading and winding-up petitions. CIGA 2020, Sch 10 as it was first
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In the event of a service charge dispute, the starting point for resolving the dispute will be the lease terms. The following PSL content may be useful for research: Commercial service charge disputes—overview and Practice Note: Commercial service charges—what expenses can the landlord recover? In particular see the section entitled ‘Service charge disputes’ in
Q&As
This Q&A has assumed that it has been established the tenant has certainly overpaid on the terms of the lease. The tenant should first check the express terms of the lease itself to see if provision has been made for what is to happen in the event of any such overpayments. If it has, the tenant may have a remedy under the terms of the lease. Assuming the lease does not address overpayments of rent, the primary cause of action in these circumstances would be for money paid under a mistake, giving rise to a restitutionary claim in unjust enrichment. For example, in the case
Q&As
This Q&A explores who the tenant of a commercial unit should bring legal proceedings against when they suffer damage from a leak from a residential property upstairs. Specifically, this Q&A addresses the question of whether, in circumstances where the landlord is the same for both the commercial and residential unit, the commercial tenant should bring proceedings against the residential tenant or instead against the landlord requiring them to enforce the residential tenant’s lease. The nature of claims for water damage Where a tenant of property suffers water damage to their property, they will usually bring a claim against their landlord (since the damage is usually the result of disrepair for which the landlord is responsible). A claim against the landlord is usually
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A covenant to comply with title matters ‘by way of indemnity only’ Where a transfer of land takes place, the parties should effect the transfer using Land Registry Form TR1. The use of Form TR1 is required by Schedule 1 to the Land Registration Rules 2003. It is common for transfers of land to include an indemnity covenant stating that one party (which in fact is usually the transferee rather than the transferor) is covenanting with the other to observe and perform the covenants relating to the subject property. Commonly the indemnity covenant specifies that the transferee is covenanting with the transferor to do so ‘by way of
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Covenants restricting the use of land imposed by a seller may be divided into three classes: • covenants imposed for the seller’s own benefit • covenants imposed as owner of other land, of which the land sold formed a part, and intended to protect or benefit the unsold land • covenants on a sale of land to various buyers who, with their respective successors-in-title, are intended mutually to enjoy the benefit of, and be bound by, the covenants Covenants imposed for the seller’s own