Introduction to leases 2: further issues

1
Introduction to leases 2further issues

• 23 January 09
• Outline lecture
• Nick Jackson

2
What further issues?

• Further use leasehold sales
• eg3 new lecturer Thea buys a flat in Old Dover
  Road
• usually of flats
• same legal form
• LT
• different economically
• capital payment gt rent
• different socially
• owner occupation gt renting

3
What further issues? (continued)

• Further transactions
• assignment
• L or T transfers her interest
• sub-letting
• T grants a lease

4
Assignment

• In the examples
• eg2 TIAC wants rid of the premises
• eg3 Thea sells her flat
• compare the economics
• eg1 n/a
• From the property perspective
• transfer of property rights
• formalities / registration

5
Assignment (continued)

• Terminology and how to draw

L T
assignment
A
assignee
assignor
6
Sub-letting

• In the examples
• Thea rent out her flat for a while
• TIAC unlikely to sublet but is a sub-lease
• From the property perspective
• granting a new lease
• carved out from an existing property right
• similar to original grant
• whether formal requirements depends on length

7
Sub-letting (continued)

• Terminology and how to draw

L T
S
8
Contractual perspective

• Who can enforce covenants against whom?Basic
  rule
• Tension with privity of contract

• Covenants in a lease are enforceable between the
  landlord and tenant of that lease

9
Contractual perspective (continued)
Sub-letting
Assignment
L T S
L T A
Covenants in a lease are enforceable between the
landlord and tenant of that lease
- last slide