Termination of Tenancies for Tenant Default - Law Commission

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Preservation orders 121 Transfer orders 122 New tenancy orders 124 Requiring the new tenant to grant new interests 126 Orders in respect of part only of the demised premises 126 Conveyancing 126 Reform recommendations 127 Joint holders of qualifying interests 128 DEALING WITH THE MORTGAGOR’S EQUITY OF REDEMPTION 129 The CP’s provisional proposals 129 Consultation 130 PART 7 - SUMMARY TERMINATION PROCEDURE 132 INTRODUCTION 132 CURRENT LAW 132 The importance of the decision in Billson 133 The “twilight period” 134 THE COMMISSION’S WORK TO DATE 135 Commonhold and Leasehold Reform Act 2002 138 The CP’s provisional proposals 138 Consultation 139 General views on endorsement of “self-help” 139 Restrictions on unilaterally recovering possession 140 Notice requirements 142 The effect of recovery of possession 142 Re-appraisal of provisional proposals 143 A SUMMARY TERMINATION PROCEDURE 144 Overview 145 Benefits 147 8
Restrictions on using the summary termination procedure 148 Express exclusion 149 Tenant default 149 Insolvency 149 Repairing covenants 150 Where any person is lawfully residing 150 Tenancies with more than 25 years unexpired 150 Residential tenancies 151 The summary termination notice 151 Landlord’s election 152 The period between service and expiry of the summary termination notice 152 Applying to the court to discharge a summary termination notice 152 Automatic termination 154 Post-termination order 154 Costs 155 Reform recommendations 156 PART 8 - LIST OF RECOMMENDATIONS 160 APPENDIX A - LANDLORD AND TENANT (TERMINATION OF TENANCIES) BILL 174 APPENDIX B - EXPLANATORY NOTES TO BILL 218 APPENDIX C - RESPONDENTS TO CONSULTATION PAPER NO 174 241 9
Page 1 and 2: The Law Commission (LAW COM No 303)
Page 3 and 4: THE LAW COMMISSION TERMINATION OF T
Page 5 and 6: Consultation 40 Reform recommendati
Page 7 and 8: Consultation 68 Reform recommendati
Page 9: (7) Any other matter 102 THE LEASEH
Page 14 and 15: where appropriate using the various
Page 16 and 17: etains an equitable jurisdiction to
Page 18 and 19: of the law”. A number of leading
Page 20 and 21: procedure, the tenancy will not ter
Page 22 and 23: Part 6 examines the position of tho
Page 24 and 25: 2.7 When a tenancy is terminated un
Page 26 and 27: unless valid notices have been give
Page 28 and 29: Transfer order 2.30 Only a qualifyi
Page 30 and 31: 2.41 Where a landlord serves a summ
Page 32 and 33: PART 3 TENANT DEFAULT INTRODUCTION
Page 34 and 35: scheme by characterising the obliga
Page 36 and 37: to include such clauses and to allo
Page 38 and 39: perform their obligations under the
Page 40 and 41: SPECIAL CASES OF TENANT DEFAULT Den
Page 42 and 43: Assignment 3.51 Most tenancies cont
Page 44 and 45: the incoming tenant of the assigned
Page 46 and 47: often stipulate that a right to for
Page 48 and 49: insolvency process having the same
Page 50 and 51: 3.93 In addition, section 81 of the
Page 52 and 53: 1996 and Chapter 5 of the Commonhol
Page 54 and 55: covenant is non-payment of rent, a
Page 56 and 57: Reform recommendations 3.132 We rec
Page 58 and 59: The CP’s provisional proposals 4.
Page 60 and 61:
do so by delaying until the default
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it is unlikely that a tenant would
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(4) give the date by which action m
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Specify the time for remedial actio
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(3) must specify in respect of the
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agreement (subject to a maximum ext
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underlying principle that qualifyin
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all tenancies granted for seven or
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4.92 As we intend to retain the sam
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PART 5 MAKING A TERMINATION CLAIM (
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e set off against the cost of carry
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future liabilities under the terms
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(6) where a tenancy comes to an end
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5.43 During the period of the stay,
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described. During the consultation
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termination of a tenancy under the
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5.69 We recommend that the proceeds
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5.75 The First Report therefore rec
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making any order under the scheme t
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5.93 The CP provisionally proposed
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of the parties. 78 Proportionality
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past conduct of the parties. This m
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(7) Any other matter 5.127 It would
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PART 6 QUALIFYING INTERESTS INTRODU
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1925 extends to lessees, under-less
Page 110 and 111:
according to the lease without any
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interchangeably by the courts, by s
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entitled to use the scheme to prote
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(2) if not in occupation, a right w
Page 118 and 119:
property. The simplest means of ens
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(1) What should the landlord be exp
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claim with the court for service on
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have to apply for relief, which, if
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qualified covenant not to assign th
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that it is both appropriate and pro
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order unless the person who holds t
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CP suggested, close down any potent
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PART 7 SUMMARY TERMINATION PROCEDUR
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action rather than by physical re-e
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Paper was published. 22 It proposed
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7.28 It was hoped that this recomme
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equirement for service of a notice
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7.51 The final restriction was: It
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in the sub-tenant being removed fro
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termination claim, the summary term
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7.71 The summary termination proced
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Repairing covenants 7.79 The repair
Page 154 and 155:
7.88 We do not wish to discourage t
Page 156 and 157:
dispensation power will only be exe
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to costs under the summary terminat
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7.112 We recommend that: specifying
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PART 8 LIST OF RECOMMENDATIONS PART
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8.13 We recommend that the Insolven
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(a) the day after the deadline spec
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(6) if the court dismisses an appli
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8.39 We recommend that, where a ten
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8.49 We recommend that: (1) where t
Page 174 and 175:
(4) the default is a breach of cove
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APPENDIX A DRAFT LANDLORD AND TENAN
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ii Interpretation, etc. 28 Meaning
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2 178 Landlord and Tenant (Terminat
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4 180 Landlord and Tenant (Terminat
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6 (8) This section is subject to se
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8 13 Remedial order 184 Landlord an
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10 186 Landlord and Tenant (Termina
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Page 194 and 195:
16 30 Meaning of “qualifying inte
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Page 198 and 199:
20 Preliminary 196 Landlord and Ten
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22 Proper address 198 Landlord and
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Page 204 and 205:
26 Settled Land Act 1925 (c. 18) 4
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Page 208 and 209:
Page 210 and 211:
32 Protection from Eviction Act 197
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34 Landlord and Tenant Act 1985 (c.
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Page 216 and 217:
38 (2) After that subsection, inser
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40 Settled Land Act 1925 (c. 18)—
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APPENDIX B EXPLANATORY NOTES TO THE
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landlord assigns the reversion, he
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33. For example, if a tenant defaul
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53. Subsection (5), although broadl
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If the court is satisfied of this,
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91. Subsection (4) mitigates the ef
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108. Under the current law, forfeit
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126. Subsection (2) applies where t
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145. Subsection (1)(d) includes wit
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unless he or she obtains a court or
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person who is the tenant as a resul
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termination notice (except where th
Page 244:
Robin Sinclair, Solicitor Slaughter
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Termination of Tenancies for Tenant Default - Law Commission

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