1. Introduction to leases 2: further issues 23 January 09 Outline lecture Nick Jackson

2. 2 What ‘further issues’? Further use: leasehold sales  [eg3: new lecturer Thea buys a flat in Old Dover Road]  usually of flats  same legal form L&T  different economically capital payment > rent  different socially owner occupation > renting

3. 3 What ‘further issues’? (continued) Further transactions 1.assignment L or T transfers her interest 2.sub-letting T grants a lease

4. 4 Assignment In the examples:  eg2 TIAC: wants rid of the premises  eg3 Thea: sells her flat [compare the economics]  [eg1 n/a] From the property perspective  transfer of property rights  formalities / registration

5. 5 Assignment (continued) Terminology and how to draw LTLT assignment assignee assignor A

6. 6 Sub-letting In the examples  Thea – rent out her flat for a while  [TIAC – unlikely to sublet; but is a sub-lease] From the property perspective  granting a new lease  carved out from an existing property right  similar to original grant  whether formal requirements depends on length

7. 7 Sub-letting (continued) LTLT head-lessee / sub-lessor sub-lessee head-lease head-lessor sub-lease Terminology and how to draw: S

8. 8 Contractual perspective Who can enforce covenants against whom? ‘Basic rule’”: Tension with privity of contract Covenants in a lease are enforceable between the landlord and tenant of that lease

9. 9 Contractual perspective (continued) - last slide Covenants in a lease are enforceable between the landlord and tenant of that lease Sub-letting L T S Assignment L T A Covenants enforceable)