A declaration of trust of a lease had been executed by the tenant. The landlord complained that this was a breach of the covenant against assignment.
Held: In the absence of any context showing that the covenant is to have an extended meaning, a covenant in a lease against assigning the demised premises covers only a legal assignment.
Romer LJ said: ‘It seems to me to be clear that a covenant in a lease against assigning the demised premises, in the absence of any context showing that the covenant is to have an extended meaning, covers only a legal assignment. The covenant against assignment is, therefore, not broken by anything short of a legal assignment. In my opinion such a covenant is not broken by the lessee executing a declaration of trust of the demised premises.’
Judges:
AL Smith and Romer LJJ
Citations:
[1900] 2 QB 267
Jurisdiction:
England and Wales
Cited by:
Cited – Clarence House Ltd v National Westminster Bank Plc ChD 23-Jan-2009
The claimant landlord alleged that the defendant tenant had transferred the lease under a ‘virtual assignment’ and that this was in breach of its lease.
Held: The Abbey National case was not helpful. However, the arrangement was not a breach . .
Cited – Clarence House Ltd v National Westminster Bank Plc CA 8-Dec-2009
The defendant tenants, anticipating that the landlord might delay or refuse consent to a subletting entered into a ‘virtual assignment’ of the lease, an assignment in everything but the deed and with no registration. The lease contained a standard . .
Lists of cited by and citing cases may be incomplete.
Landlord and Tenant
Updated: 07 October 2022; Ref: scu.281708