S19, overriding lease: if original tenant is sued, he can take back a lease of the property over the head of the current tenant (an overriding lease). 5
Assignees of the landlord’s reversion (rules under LPA 1925, ss141 and 142)New owner takes benefit and burden of lease covenants. Similar to Spencer’s Caserules for tenant’s assignment, except the assignee is able to sue or be sued in respect of breaches of all covenants which have ‘reference to the subject matter of the lease’, as opposed to those which ‘touch and concern’ the land. S141 LPA 1925: passes the benefit (of L’s covenants to a new L (L1)). S142 automatically passes the burden(of L’s covenants to a new L). IF covenants ‘touch and concern’ the land—‘have reference to the subject matter of the lease’. Original L remains liable for landlord covenants—Stuart v Joy (1904)Far-reaching consequences of ss141 1925---if a landlord assigns their reversion, they can no longer sue the tenant for breaches committed before the date of the assignment—this right passes to the purchases, L1, who gains the right to sue the tenant for breaches of covenant committed before the reversion was assigned to them:Re King, Robinson & Gray(1963): New L can sue for pre-existing breaches. Old landlord loses right to sue. So, following Re King, A landlord proposing to assign the reversion should, if there are rent arrears outstanding:o(1) collect those arrears from the new landlord directly on assignment, leaving the new landlord to collect the arrears on his own behalf;oor (2) arrange for the new landlord to collect the arrears on the outgoing landlord’s behalf as agent. oConfirmed in Arlesford Trading v Servansingh (1971)Arlesford Trading v Servansingh (1971): New landlord can sue original tenant for the outstanding rent, by virtue of s141 LPA 1925. Limitations on LPA 1925, s142: covenants to renew:oAlthough s142 automatically passes the burden of covenants which have ‘reference to the subject matter of the lease’to an assignee of the reversion,a landlord’s covenant to renew the lease at the end of the term is classes as a separate interest in land, an ‘estate contract’—oWhich, to bind a purchaser of the reversionary interest, must be registered, either as a class C(iv) land charge if land is unregistered; or as a notice on the charges register if land is registered. o(Beesly v Hallwood Estates, 1961; Phillips v Mobil Oil, 1989). Head Landlords Sub-tenants (can head L sue the sub-tenant for breaches of covenants inthe sub-lease)?oNo privity: there is neither privity of estate nor privity of contract between ahead landlord and sub-tenant. Because the head landlord is not the direct landlord of the sub-tenant. Rather, the relationship of landlord and tenant exists between the landlord and tenant, and again between the tenant and their sub-tenant. oGenerally: no, head L cannot sue a sub-tenant directlyfor breach of covenants in the sub-lease. 6
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