Commercial Leases: Lecture 7 Today

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Commercial Leases Lecture 7Todays topics

• Repairing covenants
• Tenants covenant to repair
• Landlords covenant/Service charge
• Vacation self-study exercise
• Landlords remedies

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Commercial Leases Lecture 7Repairing covenants

• Implied obligations (p.1)
• To use in tenant-like manner
• To give business efficacy to the agreement
• Tenants covenant to repair
• Lease of whole/part
• Interaction with other provisions
• Look at Repair and Demised Premises together

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Commercial Leases Lecture 7Tenants 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

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Commercial Leases Lecture 7Tenants 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 (Ls 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

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Commercial Leases Lecture 7Tenants 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 the dwelling 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

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Commercial Leases Lecture 7Tenants 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

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Commercial Leases Lecture 7Tenants covenant
to repair

• Standard of repair
• Proudfoot v Hart 3 year lease keep premises
  in good tenantable repair
• Obligation was to put and 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

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Commercial Leases Lecture 7Tenants covenant
to repair

• Scope of repairing covenant (p. 2, para (f))
• Put and keep
• Inherent defects can fall under repairing
  covenant
• Ravenseft v Davstone cladding loose and
  dangerous lengthy repairing covenant
• Repair doesnt 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

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Commercial Leases Lecture 7Tenants covenant
to repair

• Summary of relevant factors to determine whether
  repair (p.3)
• Amending tenants covenant to repair (p.4)
• Exclude inherent defects
• Exclude insured risks
• Schedule of condition
• Fair wear and tear excepted
• Landlords re-entry clause

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Commercial Leases Lecture 7Service charge

• Relevance - lease of part/internal demise/unit on
  estate (p.5)
• Service charges
• Check Landlords covenant to provide services
• Tenants amendments
• See Vacation self-study exercise
• Look mainly at services provided/expenses
• Few legal points mainly commercial

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Commercial Leases Lecture 7Ancillary covenants

• Yielding up in repair
• Decoration

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Commercial Leases Lecture 7Landlords 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