<-- Twitter Summary card images-->Landlord counts cost of failure to observe covenants | B P Collins Solicitors | Gerrards Cross and Buckinghamshire law firm Landlord counts cost of failure to observe covenants | Articles | Knowledge Hub | B P Collins LLP Solicitors
Knowledge Hub | Articles

11 January 2013

Landlord counts cost of failure to observe covenants

When a landlord failed to comply strictly with its obligations under a lease, it was left to count the cost of the failure.

The landlord was required to insure the building it let out to four tenants and to hold the insurance in the joint names of itself and each of the tenants. The tenants, in turn, were each required to pay a quarter of the insurance premium, which was payable by way of an insurance rent.

For some reason, the insurance, which had been correctly annotated beforehand, started being issued without the interest of one of the tenants being noted. This went on for three years. The tenant refused to pay her insurance premium because the landlord had not complied with the covenant in the lease to take out the policy in joint names.

The Upper Tribunal held that in order to be able to recover the share of the insurance premium payable by the tenant, the landlord had to comply with the covenant in the lease.  

Commercial property senior associate, Alison Taylor, concludes: "The case should serve as a reminder to landlords of the necessity to adhere to the letter to the covenants in their leases."

If you are a landlord or tenant of commercial premises, contact Shona for lease advice.

Stay in touch

Phone: +44 (0) 1753 889995

Email: enquiries@bpcollins.co.uk

About cookies on our website

Our Site uses cookies to improve your experience of certain areas of the Site and to allow the use of specific functionality, such as social media page sharing. You may delete and block all cookies from this Site, but as a result, parts of the Site may not work as intended.

To find out more about our cookies policy, please visit here.

Click on the button below to accept the use of cookies on this Site (this will prevent the dialogue box from appearing on future visits).