Firstly, with regard to the terms of the original tenant's lease, the lease was for a term of ten years granted in 2001 and includes numerous leasehold covenants. In addition to the express leasehold covenants, the law will imply covenants into a lease , which include the following:
1) Covenant to allow the tenant quiet enjoyment of the property;
2) Covenant not to derogate from grant;
3) Covenant to pay taxes and rates on the property;
4) Covenant to make good waste; and
5) Covenant to keep the interior in good repair .
[...] Therefore if the purchase was to proceed, at most the tenant would have to notify the subtenant of the proposed sale under section 2 of the Landlord and Tenant Act 1988[12]. Again, as the sublease was granted after the LTA 1995, the tenant's obligations will be released under the terms of the sublease if the sale to the purchaser goes ahead, unless the tenant is required to enter into an authorized guarantee agreement in respect of the sublease as part of the negotiations with the purchaser. [...]
[...] The notice can be served during the initial tenancy term, after the first six months, which means that subtenant's rights are only protected for six months and that after the first six month period, the sublease landlord can give two months' notice to quit at any time[13]. If the term has not expired, then the landlord of the sublease can give two months notice and apply to the court for a possession order[14]. Such an order under the Housing Act 1996 will generally be granted if the sale of the property is necessary to pay off mortgage loan and the tenant is more than eight-week arrears of rent[15]. [...]
[...] and be expressed to expire on the last day of the period of the tenancy; which date must be no earlier than the tenancy could have been determined at common law[16]. Accordingly, under the section 21 provisions, the sublease landlord would be able to seek possession upon two months written notice to the subtenant, however the sublease would not terminate earlier than the expiry of the two year period agreed. Alternatively, the landlord of the sublease could issue a notice to quit under the common law[17]. [...]
[...] M. Dixon (2005) “Principles of Land 5th Edition. Routledge –Cavendish Publishing J MacKenzie& M Phillips (2005). Land Law. 10th Edition Oxford University Press. Megarry and Wade., (2007) The Law of Real Property. 7th Edition Sweet & Maxwell R J Smith (2003) Property Law 4th Edition, Longman Legislation & Websites Law of Property Act 1925 Landlord and Tenant Act 1954 Housing Act 1988 Landlord and Tenant Act 1988 Landlord and Tenant Act 1995 Housing Act 1996 www.opsi.gov.uk R J Smith (2003) [...]
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