This Problem concerns the enforceability and remedies of leasehold covenants between landlords and tenants, and their successors in title. The ground floor lease is granted before 1 January 1996 and so the covenants are governed by a mixture of statute and common law. The first and second floor leases were granted in 2001 after the coming into force of the Landlord and Tenant (Covenant) Act 1995 and are dealt with under this statutory regime.
Ground Floor
On the facts the original landlord, Larry and the Original tenant Tariq have assigned their leasehold estate. Clearly the original parties are bound to each other in contract to perform the covenants contained in the lease. Tariq liability continues throughout the whole term of the lease, and for any breach of covenant committed by his assignee Thursby v Plant (1690). Under s141 of the Law of Property Act (LPA) 1925, a landlord will not be able to sue the original tenant after he has parted with the land as that right is statutorily transferred to the new landlord, if the covenant has reference to the subject matter of the lease Re King 1963.
Of course for practical purposes, the landlord, Ron, will wish to enforce the leasehold covenant against the present tenant and, in this respect, the issue turns on whether the benefit of the covenant has passed to him and the burden of the covenant has passed to the new tenant. The rule under the Spencer case provides that two conditions must also be met (i) there must also be privity of estate between the parties and (ii) the covenants touch and concern the land.
The lease contains two covenants, one to pay rent and the other to use property as a ladies fashion business. The requirements for determining whether a covenant does touch and concern land have been re-stated by Swift Investments v Combined English Stores 1988. They are (i) covenant that benefits any estate as opposed to a particular original covenantee (ii) a covenant which affects