Enforcing lease covenants against former tenants and their guarantors

The ability to enforce lease covenants against parties other than the present tenant can be one of the most fundamental priorities in structuring lease transactions.  The re-casting of the law brought about by the Landlord and Tenant (Covenants) Act 1995 led to a series of technical and confusing decisions – which have asked as many questions as they have answered.  New decisions are still emerging and for those advising a former tenant or guarantor in receipt of a landlord’s claim or a s.17 notice, knowing the possible challenges and the range of tactical options may mean the difference between writing a hefty cheque and turning the situation to advantage.

Topics covered will include:

• Continued relevance of the ‘old’ regime
• The 1995 Act – principle and pragmatism
• Parent company guarantees after the EMI Group case
• 17 notices – getting the formalities right
• Challenging the landlord’s claim