Termination of Tenancies for Tenant Default - Law Commission

8.39 We recommend that, where a tenancy (other than an agricultural tenancy) was
granted for at least seven years of which at least three years are unexpired, and
there has been tenant default that is a breach of a covenant to put or keep the
whole or part of the demised premises in repair, the court may not make any
order unless:
(1) immediate action to remedy the default is necessary to prevent a
substantial reduction in the value of the landlord’s reversion or the default
has substantially reduced the value of the landlord’s reversion;
(2) immediate action to remedy the default is necessary to give effect to the
purpose of an enactment, an order of the court or a requirement of an
authority under an enactment;
(3) the tenant is not in occupation of the whole of the demised premises and
immediate action to remedy the default is necessary in the interests of
the occupier of the whole or part of the premises;
(4) the costs involved in taking action to remedy the default are likely to
increase significantly if action is not taken immediately; or
(5) the court thinks that there are special circumstances which make it just
and equitable to make an order.
PART 6 – QUALIFYING INTERESTS
168
[Paragraph 5.132]
8.40 We recommend that where a tenancy comes to an end as a result of termination
action, any interest derived from the tenancy shall come to an end simultaneously
with it.
[Paragraph 6.6]
8.41 We recommend that those who hold qualifying interests in the tenancy and who
wish to protect their interests should be entitled to apply to the court for any
order, other than a termination order.
8.42 We recommend that the class of qualifying interests should include:
(1) any sub-tenancy of the whole or part of the demised premises;
[Paragraph 6.10]
(2) any charge on the tenant’s or a sub-tenant’s interest in the demised
premises;
(3) any option to purchase, or right of pre-emption in respect of, the tenant’s
or a sub-tenant’s interest in the demised premises;
(4) any right to an assignment of the whole or part of the demised premises
(or to an assignment of a charge on the tenant’s or sub-tenant’s interest
in the demised premises); and