13.07.2015 Views

Consultation Paper on the General Law of the Landlord and Tenant

Consultation Paper on the General Law of the Landlord and Tenant

Consultation Paper on the General Law of the Landlord and Tenant

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

eferred to as a severance <strong>of</strong> <strong>the</strong> interest held. 64 This is a somewhatcomplicated area <strong>of</strong> <strong>the</strong> law <strong>and</strong> <strong>the</strong> positi<strong>on</strong> <strong>of</strong> <strong>the</strong> parties followingsuch a transacti<strong>on</strong> is far from clear.3.19 So far as severance by <strong>the</strong> l<strong>and</strong>lord is c<strong>on</strong>cerned, twodistinct transacti<strong>on</strong>s may take place. A severance as to <strong>the</strong> l<strong>and</strong>lord’sestate may be effected by granting a “c<strong>on</strong>current” lease to a thirdparty. Such a lease runs c<strong>on</strong>currently with <strong>the</strong> original lease <strong>and</strong>should be distinguished from a “reversi<strong>on</strong>ary” lease, whichcommences at <strong>the</strong> end <strong>of</strong> <strong>the</strong> original lease. 65 It seems to be settledlaw that <strong>the</strong> c<strong>on</strong>current lessee steps into <strong>the</strong> shoes <strong>of</strong> <strong>the</strong> originall<strong>and</strong>lord (<strong>the</strong> grantor <strong>of</strong> <strong>the</strong> c<strong>on</strong>current lease) <strong>and</strong> is to be treated as anassignee <strong>of</strong> that l<strong>and</strong>lord’s interest for <strong>the</strong> term <strong>of</strong> <strong>the</strong> c<strong>on</strong>currentlease. 66 As such <strong>the</strong> c<strong>on</strong>current lessee is liable <strong>on</strong> <strong>the</strong> originall<strong>and</strong>lord’s covenants <strong>and</strong> can enforce <strong>the</strong> tenant’s covenants. 67 It wassettled by statute 68 a l<strong>on</strong>g time ago that <strong>the</strong>re was no need for <strong>the</strong>tenant to “attorn” or acknowledge <strong>the</strong> positi<strong>on</strong> as tenant <strong>of</strong> <strong>the</strong>c<strong>on</strong>current lessee. 69 In this respect <strong>the</strong> positi<strong>on</strong> <strong>of</strong> <strong>the</strong> parties isgoverned by secti<strong>on</strong>s 12 <strong>and</strong> 13 <strong>of</strong> Deasy’s Act. 703.20 Ra<strong>the</strong>r more uncertainty exists where <strong>the</strong> l<strong>and</strong>lord insteadengages in a severance as to <strong>the</strong> l<strong>and</strong>, or, as it is sometimes put, aseverance <strong>of</strong> <strong>the</strong> reversi<strong>on</strong>. This involves an assignment <strong>of</strong> part <strong>on</strong>ly<strong>of</strong> <strong>the</strong> l<strong>and</strong>lord’s interest, with <strong>the</strong> intenti<strong>on</strong> that <strong>the</strong>re will be two (ormore) l<strong>and</strong>lords <strong>of</strong> <strong>the</strong> demised premises. Clearly as between <strong>the</strong>parties to such an arrangement <strong>the</strong> severance will be fully effective.As between <strong>the</strong>mselves <strong>the</strong>y can apporti<strong>on</strong> <strong>the</strong> rent <strong>and</strong> o<strong>the</strong>r receipts(eg service charges) <strong>and</strong> a number <strong>of</strong> statutory provisi<strong>on</strong>s c<strong>on</strong>firm that64656667686970See Wylie op cit paragraphs 21.31-36.Thus a c<strong>on</strong>current lease is a lease <strong>of</strong> <strong>the</strong> reversi<strong>on</strong>, whereas a reversi<strong>on</strong>arylease is a lease in reversi<strong>on</strong>: per FitzGibb<strong>on</strong> LJ in Beamish v Crowley(1885) 16 LR Ir 279, 290.Usually <strong>the</strong> same term as <strong>the</strong> original lease less a few days.McKeague v Hutchins<strong>on</strong> (1884) 18 ILTR 70; Adelphi (Estates) Ltd vChristie [1984] 1 EGLR 19.Secti<strong>on</strong>s 9 <strong>and</strong> 10 <strong>of</strong> <strong>the</strong> Administrati<strong>on</strong> <strong>of</strong> Justice (Irel<strong>and</strong>) Act 1707.However, <strong>the</strong> tenant can c<strong>on</strong>tinue to pay rent to <strong>the</strong> original l<strong>and</strong>lord(grantor <strong>of</strong> <strong>the</strong> c<strong>on</strong>current lease) until notified <strong>of</strong> <strong>the</strong> assignment effectedby <strong>the</strong> grant <strong>of</strong> <strong>the</strong> c<strong>on</strong>current lease.See paragraph 3.06 above.66

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!