Date 1 November 2011
Publication Leasehold Life
In 1988 the Law Commission recommended major reform to the rules of enforceability of leasehold covenants. This was primarily because the doctrine of privity of contract meant that the original parties to a lease remained liable to each other throughout the term even once their respective interests had long since been assigned. This was considered to be unfair on the original parties and the Act was designed to remedy this.
There was also a second aspect to the reforms, which was supposed to regularise which covenants were enforceable against successors in title.
In general a new lease is one granted on or after 1 January 1996 and an old one was granted prior to that date (there are some exceptions).
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Chris Alexander regularly contributes to industry publications including Leasehold Life. To read more articles by Chris, click here.