Termination of Tenancies for Tenant Default - Law Commission

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Reform recommendations 80 REMEDIAL ORDER 82 The CP’s provisional proposals 82 Consultation 82 Reform recommendations 83 ORDERS FOR SALE 85 The CP’s provisional proposals 85 Consultation 86 Reform recommendations 87 Conduct of the sale 89 Distribution of the proceeds of sale 89 JOINT TENANCY ADJUSTMENT ORDER 91 The CP’s provisional proposals 91 Consultation 92 Reform recommendations 93 POWER TO ORDER PAYMENT OF A SUM OR PROVISION OF SECURITY 94 JUDICIAL DISCRETION 95 The CP’s provisional proposals 95 Consultation 96 Reform recommendations 96 Proportionate and appropriate 97 The statutory checklist 98 (1) Conduct of the parties 99 (2) Qualifying interests 100 (3) Remedial action 101 (4) Reasonable deadline 101 (5) Likelihood of compliance 101 (6) Other possible remedies 101 6
(7) Any other matter 102 THE LEASEHOLD PROPERTY (REPAIRS) ACT 1938 102 PART 6 - QUALIFYING INTERESTS 104 INTRODUCTION 104 The CP’s provisional proposals 104 Consultation 104 Reform recommendations 104 WHAT INTERESTS SHOULD BE QUALIFYING INTERESTS? 105 The CP’s provisional proposals 106 Consultation 107 Sub-tenants 107 Mortgagees and chargees 108 Incorporeal hereditaments 110 Options to purchase and rights of pre-emption 111 Sureties and guarantors 112 The right to an overriding lease of the demised premises 113 Home rights under the Family Law Act 1996 113 Rights of a beneficiary behind a trust 114 Adverse possessors 115 Reform recommendations 115 MAKING THE LANDLORD AWARE OF QUALIFYING INTERESTS 115 The CP’s provisional proposals 116 Consultation 117 Reform recommendations 117 RESPONDING TO A TERMINATION CLAIM 119 ORDERS OF THE COURT 120 The CP’s provisional proposal 120 Consultation 121 7
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: Consultation 68 Reform recommendati
Page 11: Restrictions on using the summary t
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.
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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
Page 114 and 115:
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
Page 134 and 135:
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
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(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 192 and 193:
Page 194 and 195:
16 30 Meaning of “qualifying inte
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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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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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