The relationship between landlord and tenants in relation to Essay

The relationship between landlord and tenants in relation to assignment of leases and recovery of rent arrears - Essay Example The relationship between landlord and tenants in relation to assignment of leases â€Å"not to be on unreasonably withheld† & the legal and softer approach to dealing with rent arrears bearing in mind a proactive management approach Introduction Question one : Case scenario The first question deals with assignment of a lease by the tenant whereby the lease agreement permits for assignment, but with the consent of the tenant. In this case, the consent of the tenant cannot be unreasonably withheld. One of the shop is used by a hairdresser who wish to assign the lease to another hairdresser in the town. Shelagh (the other hairdresser) is considered a better covenant than existing tenant since she has a more profitable business than the current tenant.Although, I dislike Shelaghm, the lease permits the tenant to assign the premises with my consent. In this case, I cannot withhold the consent unreasonably. In the above case scenario, I cannot simply say no to the assignment of the lease. There are numerous laws that govern the landlord and tenant relationship with regard to the assignment of the lease. The Amendment of law of property Act 1925, provides the procedure for discharging or modifying any covenants including leaseholds (Pawlowski, 2002). The lease is of a commercial property and entails a covenant that is legally binding to the landlord and tenant. The tenant has the right to assignment lease to another tenant. Accordingly, the covenant requires the tenant to make an assignment only with the consent of the landlord.... Accordingly, the landlord must notify the tenant of any conditions attached to the consent or reasons for withholding the consent (Karp and Klayman, 2003). In addition, section 19(1) a of the landlord and tenant ACT1927, makes it clear that a landlord cannot unreasonably withhold his consent in a qualified covenant (Karp and Klayman, 2003). Accordingly, section 19 (1A) of the landlord and tenant Act 1927 allows both the landlord and tenant to agree of certain conditions that will apply while granting the consent of assignment (Pawlowski, 2002). In this case, the landlord will not unreasonably withhold his consent if he withholds the consent due to a specific circumstance that attaches to the assignment. In the above case, it is the legal duty of the landlord to grant the consent of assignment or provides reasons for the withholding of the consent (Karp and Klayman, 2003). Ideally, the main issue that arises in the grant of assignment consent is financial capability of the proposed ne w tenant. The landlord can ask for the financial accounts of the proposed tenant and enlist the services of a credit rating agency in determining the creditworthiness of the proposed tenant (Pawlowski, 2002). In the above case, Shelagh has a more profitable business and thus more credit worth than the current tenant. Accordingly, the landlord is entitled to take in to full consideration of the attaching property interests in the whole property such as good estate management reasons (Karp and Klayman, 2003). The landlord will seek satisfaction that the proposed new tenant is capable of complying with the lease covenants after the assignment and require for additional securities such as rent deposit and guarantees. In addition, the