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Termination Of Leases And Business Tenancies Notes

GDL Law Notes > GDL Land Law Notes

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A more recent version of these Termination Of Leases And Business Tenancies notes – written by Cambridge/Bpp/College Of Law students – is available here.

The following is a more accessble plain text extract of the PDF sample above, taken from our GDL Land Law Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Revision: Land

[LEASES: FORFEITURE AND BUSINESS TENANCIES]
Termination of Leases: various means by which a lease can come to an end:
? Effluxion of Time: usual common law way - although in some cases the tenant (T) may have security of tenure
? Break Clause: there may be a provision in the lease allowing either party to serve notice
? Surrender: handing back on the lease by the T to the landlord (L) with L's permission
? Merger: T acquires L's interest and the lease is absorbed and the reversion destroyed
? Enlargement
? Notice to Quit o

Application to periodic tenancies

o

Necessary proof of notice:Yearly tenancy: either side must give at least 1/2 a year's notice to quitOther periodic tenancies: must five a full period's notice to expire at the end of a complete periodDwelling houses: governed by rules in the Protection from Eviction Act 1977 (PFEA) (as amended by Housing Act 1988)Tenancies at will: no period of notice necessary

? Frustration: a theoretic possibility where the property is destroyed
? Repudiation: may be possible for T to terminate the lease by repudiation

? Forfeiture : the right for the L to terminate prematurely for breach of covenant

*

The right is never implied into a legal lease so there must be an express clause o

Although in an equitable lease a right to forfeit for non-payment IS implied (Hodgkinson v Crowe)

*

Forfeiture clause also known as a non-entry clause, as the forfeiture clause creates a legal right of re-entry 1

Revision: Land

[LEASES: FORFEITURE AND BUSINESS TENANCIES]
o

L exercises right by peaceably re-entering or by obtaining a court order

o

For residential premises, the L must obtain a court order (S2 PFEA)this includes where the premises are mixed residential and commercial (Patel v Pirabakaran)

o

For purely business premises, the landlord may forfeit by peaceable re-entry - physically entering, changing locks and putting up an unequivocal notice that he forfeiting

*

Waiver: L must not have waived the right to forfeit - this may have occurred if

o

i)

He is aware of the acts/omissions giving rise to the breach; and

ii)

Has done some unequivocal act recognising the continued existence of the lease

E.g. accepting rent due after the breach despite knowing of the breachCan take place inadvertently where the L's agent demands rent where the L is aware of breach (Central Estates (Belgravia) Ltd v WoolgarJohn Lewis v Viscount Chelsea: Where the L's bankers had mistakenly accepted cheques from the T, there was no waiver as all parties knew it had been a mistake (obiter)

o

Continuing Breach: (e.g. failure to repair) - the waiver lasts until the next rent day at which point the L can then choose to reject the rent and forfeit

o

Non-Continuing Breach: waiver is permanentN.B - although non-payment of rent is 'non-continuing' - the L can waive the right to forfeit by demanding the next months, and then still reject the next rent due after that, forfeiting at that point for previous arrears (if they are still outstanding)

o

*

Waiver only affects L's right to forfeiture - retains other remedies

Different rules apply for non-payment and breaches of covenants other than non-payment of rent o

Forfeiture for non-payment of rent

2

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