Leasehold covenants
Leasehold covenants are the promises in a lease that regulate the parties' conduct. Whether they bind assignees depends on when the lease was granted.
What "Leasehold covenants" covers
- Leases granted on or after 1 January 1996 are governed by the Landlord and Tenant (Covenants) Act 1995: covenants pass automatically on assignment (s.3) unless expressed to be personal.
- Under the 1995 Act the outgoing tenant is released on a lawful assignment (s.5) but may be required to give an authorised guarantee agreement (AGA) (s.16).
- Pre-1996 leases follow privity of contract and privity of estate: the original tenant remains liable throughout the term, and covenants pass to assignees if they 'touch and concern' the land (Spencer's Case).
- Key implied/usual covenants: quiet enjoyment, not to derogate from grant, and (in many leases) the landlord's repairing obligations.
- Forfeiture requires a right of re-entry in the lease; for non-rent breaches a valid s.146 notice (LPA 1925) must first be served, giving the tenant a chance to remedy.
- Relief from forfeiture may be granted to the tenant and, in some cases, to subtenants and mortgagees.
- Assignment of covenants restricting user or alienation are commonly qualified — consent 'not to be unreasonably withheld' (Landlord and Tenant Act 1927 s.19).
Key cases & statutes
The authorities and provisions most likely to matter for this subtopic:
How it's tested in SQE1
SQE1 uses single best answer questions: a short factual scenario, one precise question, and five options of which only one is the best answer on the law applied to the facts. For leasehold covenants, expect to be asked what the correct legal position is, what a party may or must do, or which outcome follows — with more than one option looking arguable. Reading the facts carefully and eliminating the near-misses is the skill that earns the mark.
Where candidates lose marks
- Applying privity of contract to a post-1995 lease — the original tenant is generally released on assignment.
- Forgetting a s.146 notice is required for non-rent breaches before forfeiture.
- Treating peaceable re-entry to residential premises as available; it is restricted by statute.
Learn this subtopic in the course
A video lesson, notes and exam-style practice on leasehold covenants.
FAQ
Is leasehold covenants tested on SQE1?
Yes — leasehold covenants is part of the SQE1 Land Law syllabus (FLK2) and can appear in single best answer questions.
How is leasehold covenants examined in SQE1?
SQE1 tests it by application: you're given a realistic scenario and choose the single best answer from five options. The focus is on using the law correctly, not reciting it — knowing the leading authorities (Landlord and Tenant (Covenants) Act 1995 s.3, L&T (Covenants) Act 1995 s.5) helps.