1 / 12

Commercial Leases: Lecture 7 Today’s topics

Delve into the complexities of repairing covenants in commercial leases, exploring tenant and landlord responsibilities, implied obligations, and case law nuances to maintain premises. Learn about tenant's duty to repair, standards of repair, service charges, and landlord's remedies.

hopkinse
Download Presentation

Commercial Leases: Lecture 7 Today’s topics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Commercial Leases: Lecture 7Today’s topics • Repairing covenants • Tenant’s covenant to repair • Landlord’s covenant/Service charge • Vacation self-study exercise • Landlord’s remedies

  2. Commercial Leases: Lecture 7Repairing covenants • Implied obligations (p.1) • To use in tenant-like manner • To give business efficacy to the agreement • Tenant’s covenant to repair • Lease of whole/part • Interaction with other provisions • Look at “Repair” and “Demised Premises” together

  3. Commercial Leases: Lecture 7Tenant’s covenant to repair • Meaning of “repair” • Dictionary definition? • Drafting • Case law – little statutory guidance • Qualifications to “repair” (pp.1-2) • “Good and substantial” • “Tenantable” • Anstruther-Gough-Calthorpe v McOscar

  4. Commercial Leases: Lecture 7Tenant’s covenant to repair • “Repair” and “renewal” • Lurcott v Wakeley and Wheeler – although “repair” can contain elements of renewal, repair and renewal are different concepts • Credit Suisse v Beegas – (L’s covenant to repair) • “to repair, amend, renew… and otherwise keep in good and tenantable condition”; reference to “… defect or want of repair…” • Verbs “amend” and “renew” considered in addition to “repair” • Although replacement of cladding to building too extensive for “repair”, it fell within “renew and amend”

  5. Commercial Leases: Lecture 7Tenant’s covenant to repair • “Good condition” • Welsh v Greenwich – flat suffered mould inside due to condensation caused by lack of insulation – chattels damaged not structure • “to maintain thedwelling in good condition and repair” • “Good condition” a separate concept and additional to “repair” – not limited to structural condition • Held – failure to maintain in good condition

  6. Commercial Leases: Lecture 7Tenant’s covenant to repair • “Repair” and “disrepair” • Post Office v Aquarius – before liability arises under a covenant to repair there must be disrepair – unusual facts • New office building let in 1969; defect in structure of basement • Water table rose 1979-1984 – basement flooded; 1984 water table subsided – no damage caused by defect • No liability to improve to remove defect

  7. Commercial Leases: Lecture 7Tenant’s covenant to repair • Standard of repair • Proudfoot v Hart – 3 year lease – “keep premises in good tenantable repair” • Obligation was to putand keep • Having regard to age/character of locality, making reasonably fit for occupation by tenant of class likely to take it • Distinguish Anstruther – 95 year lease, so Proudfoot standard did not apply - would mean fluctuating standard depending on tenants/neighbourhood – so standard assessed at start of term

  8. Commercial Leases: Lecture 7Tenant’s covenant to repair • Scope of repairing covenant (p. 2, para (f)) • Putand keep • Inherent defects can fall under repairing covenant • Ravenseft v Davstone – cladding loose and dangerous – lengthy repairing covenant • Repair doesn’t mean giving back a different thing (Lister v Lane) but it is a matter of fact and degree • Use ratio of cost of works to value of property • Stent v Monmouth and Creska v Hammersmith – considering replacement/expense use “sensible man” criterion

  9. Commercial Leases: Lecture 7Tenant’s covenant to repair • Summary of relevant factors to determine whether repair (p.3) • Amending tenant’s covenant to repair (p.4) • Exclude inherent defects • Exclude insured risks • Schedule of condition • Fair wear and tear excepted • Landlord’s re-entry clause

  10. Commercial Leases: Lecture 7Service charge • Relevance - lease of part/internal demise/unit on estate (p.5) • Service charges • Check Landlord’s covenant – to provide services • Tenant’s amendments: • See Vacation self-study exercise • Look mainly at services provided/expenses • Few legal points – mainly commercial

  11. Commercial Leases: Lecture 7Ancillary covenants • Yielding up in repair • Decoration

  12. Commercial Leases: Lecture 7Landlord’s remedies • Damages • s18 LTA 1927 - ceiling • Leasehold Property (Repairs) Act 1938 • Forfeiture • Leasehold Property (Repairs) Act 1938 • Self-help • Jervis v Harris (debt) • Specific Performance • Rainbow Estates v Tokenhold

More Related