Termination of Tenancies for Tenant Default - Law Commission

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ii Interpretation, etc. 28 Meaning of “tenancy”, “breach”, etc. 29 Meaning of “landlord”, “tenant”, etc. 30 Meaning of “qualifying interest” 31 Meaning of “knowledge” 32 General interpretation Final provisions 33 Regulations and orders 34 Amendments and repeals 35 Commencement, extent and short title 176 Landlord and Tenant (Termination of Tenancies) Bill Schedule 1 — Exceptions and savings, etc. Schedule 2 — Tenant default: special cases Schedule 3 — Giving and delivering notices Schedule 4 — Covenants to put or keep premises in repair Schedule 5 — Insolvency Schedule 6 — Miscellaneous amendments Schedule 7 — Repeals
Landlord and Tenant (Termination of Tenancies) Bill 1 177 DRAFT OF A BILL TO Make new provision about the right to terminate a tenancy on the ground of a breach of covenant. B E IT ENACTED by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:— 1 Termination of tenancy Breach of covenant by tenant, etc. (1) A tenancy may not be terminated on the ground of a breach by the tenant, or a person to whom subsection (3) applies, of a covenant of the tenancy unless the breach is a tenant default. (2) A tenancy may not be terminated on the ground of a breach which is a tenant default except as a result of termination action taken in respect of the default. (3) This subsection applies to— (a) a previous tenant, and (b) a person who has agreed to guarantee the tenant’s, or a previous tenant’s, obligations under the tenancy. (4) “Covenant” includes a condition, agreement or term; and a reference to a covenant includes an implied covenant or one imposed by law. (5) This section is subject to Schedule 1. 2 Tenant default (1) A tenant default, in relation to a tenancy, is a breach by the tenant, or a person who has agreed to guarantee the tenant’s obligations under the tenancy, of a covenant of the tenancy other than an excepted covenant. 5 10 15
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The Law Commission (LAW COM No 303)
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THE LAW COMMISSION TERMINATION OF T
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Consultation 40 Reform recommendati
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Consultation 68 Reform recommendati
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(7) Any other matter 102 THE LEASEH
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Restrictions on using the summary t
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where appropriate using the various
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etains an equitable jurisdiction to
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of the law”. A number of leading
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procedure, the tenancy will not ter
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Part 6 examines the position of tho
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2.7 When a tenancy is terminated un
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unless valid notices have been give
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Transfer order 2.30 Only a qualifyi
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2.41 Where a landlord serves a summ
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PART 3 TENANT DEFAULT INTRODUCTION
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scheme by characterising the obliga
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to include such clauses and to allo
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perform their obligations under the
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SPECIAL CASES OF TENANT DEFAULT Den
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Assignment 3.51 Most tenancies cont
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the incoming tenant of the assigned
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often stipulate that a right to for
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insolvency process having the same
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3.93 In addition, section 81 of the
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1996 and Chapter 5 of the Commonhol
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covenant is non-payment of rent, a
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Reform recommendations 3.132 We rec
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The CP’s provisional proposals 4.
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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
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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
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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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Page 132 and 133: CP suggested, close down any potent
Page 134 and 135: PART 7 SUMMARY TERMINATION PROCEDUR
Page 136 and 137: action rather than by physical re-e
Page 138 and 139: Paper was published. 22 It proposed
Page 140 and 141: 7.28 It was hoped that this recomme
Page 142 and 143: equirement for service of a notice
Page 144 and 145: 7.51 The final restriction was: It
Page 146 and 147: in the sub-tenant being removed fro
Page 148 and 149: termination claim, the summary term
Page 150 and 151: 7.71 The summary termination proced
Page 152 and 153: 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
Page 158 and 159: to costs under the summary terminat
Page 160 and 161: 7.112 We recommend that: specifying
Page 162 and 163: PART 8 LIST OF RECOMMENDATIONS PART
Page 164 and 165: 8.13 We recommend that the Insolven
Page 166 and 167: (a) the day after the deadline spec
Page 168 and 169: (6) if the court dismisses an appli
Page 170 and 171: 8.39 We recommend that, where a ten
Page 172 and 173: 8.49 We recommend that: (1) where t
Page 174 and 175: (4) the default is a breach of cove
Page 176 and 177: APPENDIX A DRAFT LANDLORD AND TENAN
Page 180 and 181: 2 178 Landlord and Tenant (Terminat
Page 182 and 183: 4 180 Landlord and Tenant (Terminat
Page 184 and 185: 6 (8) This section is subject to se
Page 186 and 187: 8 13 Remedial order 184 Landlord an
Page 188 and 189: 10 186 Landlord and Tenant (Termina
Page 194 and 195: 16 30 Meaning of “qualifying inte
Page 198 and 199: 20 Preliminary 196 Landlord and Ten
Page 200 and 201: 22 Proper address 198 Landlord and
Page 204 and 205: 26 Settled Land Act 1925 (c. 18) 4
Page 210 and 211: 32 Protection from Eviction Act 197
Page 212 and 213: 34 Landlord and Tenant Act 1985 (c.
Page 216 and 217: 38 (2) After that subsection, inser
Page 218 and 219: 40 Settled Land Act 1925 (c. 18)—
Page 220 and 221: APPENDIX B EXPLANATORY NOTES TO THE
Page 222 and 223: landlord assigns the reversion, he
Page 224 and 225: 33. For example, if a tenant defaul
Page 226 and 227: 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
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Robin Sinclair, Solicitor Slaughter
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Termination of Tenancies for Tenant Default - Law Commission

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