PLP: Workshop 9

• What is an assignment in the context of leasehold interests?

  Transfer of leasehold interest to a new tenant
• What does the term "alienation" mean in lease law?

  Disposal of tenant’s interest in the lease
• What is the relationship between the landlord and the new tenant after an assignment?

  Landlord becomes landlord of the assignee
• Why might a tenant want to assign their lease?

  They no longer need the premises or can't afford rent
• Why might an assignee want to take on a lease?

  The premises suit their needs for business or personal use
• Can a tenant assign their lease without the landlord's consent?

  Yes, if the lease is silent on consent
• What are the different types of covenants against assignment in a lease?

  Absolute, qualified, and fully qualified covenants
• What does section 19(1)(a) of the Landlord and Tenant Act 1927 state regarding qualified covenants?

  Landlord must act reasonably when withholding consent
• What does section 1 of the Landlord and Tenant Act 1988 require regarding consent?

  Landlord must decide on consent within a reasonable time
• Can a landlord withhold consent on any grounds?

  No, not on arbitrary or discriminatory grounds
• What are some examples of reasonable grounds for withholding consent to assignment?

  Proposed use of premises and financial concerns
• What can a tenant do if the landlord unreasonably withholds consent to an assignment?

  Claim damages, including costs for agents and solicitors
• What conditions may be imposed on an assignment in a commercial lease?

  Withholding consent for unpaid rent or lack of guarantor
• How does section 19(1A) of the Landlord and Tenant Act 1927 affect assignment?

  Allows landlords to specify valid grounds for withholding consent
• What is the difference between privity of contract and privity of estate?

  Privity of contract enforces obligations; privity of estate relates to landlord-tenant relationship
• Under privity of contract, who remains liable after assignment?

  The assignor remains liable for obligations
• Under privity of estate, who is liable after assignment?

  Only limited obligations pass to the assignee
• What is the common law position regarding the assignor's liability after assignment of an old lease?

  Assignor remains liable for rent and obligations
• How did the Landlord and Tenant (Covenants) Act 1995 change liability in new leases?

  Original tenant is released from liability after assignment
• What is an Authorised Guarantee Agreement (AGA)?

  Document where outgoing tenant guarantees incoming tenant's obligations
• When is an AGA required?

  Often required in commercial leases as a condition of assignment
• What happens to an outgoing tenant’s liability under an AGA after subsequent assignments?

  Outgoing tenant's liability ends after a subsequent assignment
• In the example of A Ltd, B Ltd, and C Ltd, what is the role of the AGA?

  A Ltd guarantees B Ltd’s obligations under the lease
• What does "assignment" mean in commercial lease law?

  Transfer of a lease from assignor to assignee
• What is the effect of a qualified covenant against assignment in a lease?

  Assignment is allowed with landlord’s consent
• How has the Landlord and Tenant (Covenants) Act 1995 affected liability after assignment?

  Original tenant is released from liability; new tenant assumes obligations
• What is the purpose of an Authorised Guarantee Agreement (AGA)?

  Outgoing tenant guarantees obligations of incoming tenant