Landlord and tenant—Assignment of lease— Implied covenant
Landlord and tenant—Assignment of lease— Implied covenant
Scottish & Newcastle plc v Raguz, [2008] UKHL 65, [2008] All ER (D) 283 (Oct)
House of Lords, Lord Hoffmann, Lord Hope, Lord Scott, Lord Walker and Lord Brown
The words “the date when the charge becomes due” in s 17(2) of the Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) means the date when the landlord would be able to sue for the money. Accordingly, additional sums payable under a rent review clause do not ‘become due’ until the increase has been agreed or determined.
Timothy Fancourt QC and Christopher Stoner (instructed by Eversheds LLP) for the claimant. Stephen Jourdan and Marion Lonsdale (instructed by Sharpe Pritchard as London Agents for LHP Law LLP) for the defendant.
The claimant was the original tenant of two underleases. It assigned both to the defendant. By virtue of the Land Registration Act 1925, the assignments contained an implied covenant by the defendant that he and his successors would pay the rent reserved by the underleases,
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