The lessors sued the original lessees for rent due under the lease after the term had been assigned to another. The lessors had given a licence to assign and the licence contained a guarantee from a third party to the lessors that the assignee would pay the rent etc. Subsequently the lessors released the guarantee. The original lessees contended that the release of that guarantee released them from their covenant in the lease to pay the rent. The obligation was in the following form: ‘The tenant for itself and its assigns and to the intent that the obligations may continue throughout the term covenants with the landlord as set out in the third schedule hereto.’
Held: The court rejected that contention: ‘it is quite clear that the position is not as between the assignee and the original lessee that of principal debtor and surety.’ The fact of assignment mattered ‘not one jot or tittle.’
Judges:
Walton J
Citations:
[1984] 1 EGLR 16
Statutes:
Land Registration Act 1925 24(1)
Jurisdiction:
England and Wales
Cited by:
Cited – Scottish and Newcastle Plc v Raguz CA 24-Jul-2003
Leases had been granted. They had been assigned to the defendant who had assigned them again. The last assignee became insolvent and statutory demands were served on the claimant under the 1995 Act for rent. The claimant paid the sums due and now . .
Cited – Scottish and Newcastle Plc v Raguz ChD 11-Apr-2006
The defendant had taken assignments of the term of two underleases from the claimant, and then re-assigned them to a limited company with guarantors of the rent, and they in turn re-assigned the leases. The last company became insolvent. The . .
Cited – JBW Group Ltd v Westminster City Council CA 12-Mar-2010
The tenant had applied to the landlord for consent to assign certain leases. The court had declared the right to exercise break clauses in certain leases as lost. The court had found the right to be lost after the assignment of the leases by the . .
Lists of cited by and citing cases may be incomplete.
Landlord and Tenant, Registered Land
Updated: 27 June 2022; Ref: scu.186113