| Landlord and Tenant legislation implies certain covenants in leases and also impacts on a number of covenants which landlords normally succeed in negotiating into leases. These include covenants against disposal, change of use and the carrying out of improvements, all of which are subject to implied statutory provisions that a landlord's consent cannot be unreasonably withheld. The onus of proving that consent is being unreasonably withheld lies with the tenant. |
| A provision in a lease which seeks to impose the landlord's legal costs on the tenant will be void and therefore both parties must bear their own legal costs in any leasing transaction. This however would not apply to reasonable legal expenses incurred by a landlord in giving consent to such matters as applications for consent to disposal or change of use. Where the landlord's consent to assignment is required and a tenant, having obtained such consent, transfers his interest under a lease to a third party, that tenant is normally relieved of his obligations under the lease and the incoming tenant becomes liable to the landlord for the performance of the covenants in that lease. |
| This is different from the position in the U.K. where the original tenant remains liable in contract to the original landlord for the duration of the term. Certain formalities require to be observed in connection with the granting of the landlord's consent. |
| 2. Domestic Lettings. These relate to lettings of domestic house. The legislation does not afford any great protection for tenants with regard security of tenure. Unlike commercial leases, the right of automatic renewal of the lease does not arise until 20 years has expired. There is legislation which requires the Landlord to register with the Local Authority. However, it is difficult to police, given the limited resources of County Councils. The recent Budget (15th June, 2000) which will exempt residential property from the new stamp duty rates and 2 % annual tax, if the property owner/Landlord complies with the legislation. |