Quick guide to benefit and burden of covenants on assignment

Published by a ��Ƶ Property Disputes expert

Practice notes

Quick guide to benefit and burden of covenants on assignment

Published by a ��Ƶ Property Disputes expert

Practice notes

The Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) provides that (with exceptions) any lease granted on or after 1 January 1996 creates what is defined as a ‘new tenancy’ for the purposes of LT(C)A 1995. A lease granted before is an ‘old tenancy’. This Practice Note summarises, in the context of both ‘old tenancies’ and ‘new tenancies’, whether or not the benefit of tenant covenants and burden of landlord covenants run with the reversion, whether the benefit of landlord covenants and burden of tenant covenants run with the term, and the extent to which there is a release of liability on assignment.

	Old tenancy	New tenancy
Transfer of reversion
Benefit of tenant covenants—does it run with the reversion?	The obligation to pay rent and the benefit of other covenants and provisions in a lease that have reference to the subject matter of the lease run with the reversion (Law of Property Act 1925, s 141). Accordingly, an incoming landlord is entitled to enforce the benefit of all tenant’s covenants. The

Jurisdiction(s):

United Kingdom

Key definition:

Arrears definition

What does Arrears mean?

Sums reserved in a lease which a tenant fails to pay on the due date. A right to forfeit may be reserved in a lease once sums have been outstanding for a specified period of time.

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