breach of covenant
📖 What is breach of covenant? Meaning and definition
In UK tenancy law, particularly for leasehold properties, a covenant is a promise or agreement contained within the lease document. A 'breach of covenant' means that one of these promises has been broken. For example, a lease might include covenants about not causing nuisance, allowing landlord access, or specific uses of communal areas. When a tenant or leaseholder acts contrary to these agreed terms, they are in breach.
Applications concerning a breach of covenant are often brought before a First-Tier Tribunal (Property Chamber) under Section 168 of the Commonhold and Leasehold Reform Act 2002. The Tribunal's role is to determine whether a breach has indeed occurred. This determination is a crucial first step, as it can pave the way for further legal remedies for the landlord, such as forfeiture of the lease, though the Tribunal itself does not order such remedies.
The process typically involves the landlord (often the freeholder) making an application to the Tribunal, outlining the specific covenants they believe have been breached. The Tribunal then considers the evidence presented by both the applicant and the respondent (the tenant or leaseholder) to reach a decision. If a breach is found, it confirms the landlord's position, but the actual enforcement or consequences of that breach might involve separate legal steps.
It's important for self-represented litigants to understand that the Tribunal's decision on whether a breach has occurred can be appealed to the Upper Tribunal (Lands Chamber). Such appeals review the original decision, for instance, to determine if the Leasehold Valuation Tribunal correctly found that a breach had taken place at a specific date.
📋 Requirements
- A valid lease agreement containing specific covenants.
- An action or inaction by the tenant/leaseholder that violates one or more of these covenants.
- An application made to the First-Tier Tribunal (Property Chamber) by the landlord/freeholder.
📝 Procedure
- The landlord or freeholder submits an application to the Tribunal, claiming a breach of covenant.
- The Tribunal reviews the application and the grounds for the claim.
- A hearing is held where both parties present their case and evidence.
- The Tribunal determines whether a breach of the covenant has occurred.
- The Tribunal issues a decision, which may be subject to appeal to the Upper Tribunal.
💡 Examples
- A car sales business operating in communal areas of a property, violating a covenant in their lease regarding the use of such spaces.
- A tenant failing to allow the landlord access to the property as required by a covenant in their lease.
- A leaseholder causing or permitting a nuisance or annoyance on the demised premises, contrary to a specific covenant.
- A tenant not adhering to a clause in Schedule 9 of their lease, as determined by the Tribunal.
📚 Legal basis
- Commonhold and Leasehold Reform Act 2002
❓ Frequently asked questions
What is a covenant in a lease?
A covenant is a formal promise or agreement written into a lease document, obliging either the landlord or the tenant to do or not do something. It's a key part of the legal contract.
Who decides if a breach of covenant has happened?
The First-Tier Tribunal (Property Chamber) is typically the body that determines whether a breach of covenant has occurred, often under Section 168 of the Commonhold and Leasehold Reform Act 2002.
Can I appeal a Tribunal's decision on a breach of covenant?
Yes, decisions made by the First-Tier Tribunal regarding a breach of covenant can be appealed to the Upper Tribunal (Lands Chamber).
What happens if the Tribunal finds that a breach of covenant has occurred?
If a breach is found, it legally confirms that the tenant or leaseholder has violated their lease. This determination can then allow the landlord to pursue further legal steps, such as seeking remedies or even forfeiture of the lease, though the Tribunal itself does not order these remedies.
Does a breach of covenant always lead to eviction?
No, a finding of a breach of covenant does not automatically lead to eviction. It is a necessary first step for a landlord to take further action, but other legal processes and considerations would follow before an eviction could occur.
What kind of actions can be considered a breach of covenant?
Actions such as not allowing landlord access, causing a nuisance or annoyance, or using communal areas in a way prohibited by the lease are examples of what can be considered a breach of covenant.