Breach of Lease for Residential Properties
Disputes concerning breach of covenants in a residential lease arise when one party, either the landlord or the tenant, has breached the terms of one or more of the clauses in the lease that govern the relationship between the parties.
Examples of breaches of lease covenants include:
- A failure to pay ground rent or service charge
- Alterations to the property without the landlord's consent
- Using the property for a purpose that is not permitted by the lease
- Failure to keep the property in repair
- Impeding a leaseholder’s right to peaceful and quiet enjoyment of the property
We act for both landlords and tenants in bringing and defending claims for breach of lease covenants in residential leases. Across the team, we have vast experience of representing parties in such disputes, both before and after legal proceedings have been commenced. If you have a query with regards to a breach of lease, please call 0345 872 6666 and one of our property litigation solicitors will be happy to discuss this with you. Alternatively, fill in our online enquiry form and we will get back to you.
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What Does Breach of Lease Mean?
A breach of lease, also known as a breach of covenant, occurs when either the landlord or tenant fails to fulfil their obligations under the lease agreement. This can include a leaseholder that is in breach of lease for not paying rent on time, damaging the property, or using it for unauthorised purposes.
A freeholder may be in breach of lease if it neglects essential repairs, fails to maintain communal areas, or disrupts the leaseholder’s right to quiet enjoyment of the property. Whether it’s a leaseholder or a freeholder in breach of lease, these situations can create significant challenges for both parties.
At JMW, our experienced solicitors help landlords and tenants resolve these disputes swiftly and effectively, ensuring that lease terms are upheld and your rights are safeguarded.
There are substantial differences in respect of actions for breaching a covenant of a long residential lease (for example, a long lease of a flat) and breaches of a shorter tenancy, such as an assured shorthold tenancy. Please click here for more information on disputes concerning short-term lettings.
How JMW Can Help
Advice for Landlords
If a tenant has breached a covenant in their lease, the remedies available will depend on the type of breach committed. In many cases, landlords may need to issue a breach of lease notice to formally notify the tenant of their failure to comply with the lease terms. Generally speaking, the options available include making a claim for damages to recover any loss suffered as a result of the breach or seeking an injunction to prevent the tenant from committing or continuing with the breach.
In more severe cases, forfeiture of the lease may be an option, which involves terminating the lease and taking back possession of the property. However, this is a complex process, particularly in the case of residential leases, and various procedural steps must be followed before forfeiture can be enforced. If you are contemplating such action, seek legal advice. Our team can assist in assessing whether you are able to proceed with forfeiture and advise you on the necessary steps to protect your interests and comply with legal requirements.
Get in touch if you've experienced a breach of lease by a leaseholder. UK landlords can protect their investments and receive reimbursement for any costs from leaseholder breaches with JMW's expert legal help.
Advice for Tenants
If you have been accused of breaching your lease, the first step is to consider the terms of your lease and to assess whether you have in fact breached your lease. Often there are questions of interpretation involved with lease covenants, and it is important to consider these carefully when faced with an allegation of breach.
If your landlord is seeking to forfeit your lease for a breach of covenant, various defences are available, including whether your landlord has followed the correct procedure and whether they have waived their right to forfeit the lease. Get in touch with JMW, and we will help you to develop a robust legal defence, based on the specifics of your case.
Service Charge Disputes
Service charge disputes can arise between landlords and tenants of residential property. Leases usually contain an express provision relating to service charges.
We take instruction for both landlords and tenants where they believe a valid dispute exists, and we have experience in guiding clients through pre-action negotiations and any Tribunal proceedings, if they prove necessary.
FAQs
- How much does it cost to pursue/defend a breach of lease action?
Each case is different, and therefore the estimated costs of bringing or defending an action for breach of lease will vary depending on the nature of the breach and the remedy being pursued.
However, most modern leases contain a covenant by a leaseholder to reimburse the landlord for costs the landlord incurs in taking action against a leaseholder for breach of covenant. Our team can advise on whether your lease has such a clause.
- How does a service charge claim work?
Firstly, a leaseholder should request sight of a detailed breakdown of the service charge accounts incurred in the last accounting year. Subject to a valid request, a landlord is under an obligation to provide this to a tenant within six months of the end of the last accounting year, or within one month of the request; whichever is later. The lease may also oblige the landlord to provide you with copies of the relevant accounts.
Once the summary has been received, these can be analysed to establish whether the charges are unreasonable or whether further information is needed. We work closely with accountants and surveyors who we can personally recommend to review your accounts.
- My tenants have disputed recent service bills raised on their account - what should I do?
Firstly, check the provisions in your lease. You should ensure that any bills raised only account for work recoverable as a service charge under the lease. Secondly, if you have been served with a valid notice requesting a summary of the accounts from any leaseholders of the building, it is important that their request is dealt with within the statutory period to avoid being held liable for a summary offence and potential fine. We can provide you with guidance on complying with your statutory obligations and advise you on your obligations under the lease.
- How much does a service charge claim cost?
Each case turns on its own facts, and the cost of running a case to the Tribunal can be expensive. If you are a leaseholder, you should consider speaking to others in your building who are concerned about the cost of service charges, and consider collectively bringing a claim to reduce costs.
- When a tenant raises a dispute in relation to service charges at the property, can they stop paying for services?
A lease will contain details of a landlord’s remedy in circumstances where leaseholders do not comply with their obligations under the lease; such as paying service charges for works carried out at the property. If a leaseholder stops paying service charges that have been validly demanded, most modern leases provide that the landlord can take remedial action to recover the sums demanded and, usually, the costs of taking action to recover the sums due. If you have a similar concern, please get in touch and we can review your lease to properly advise you on what remedies may be available to you.
Talk to Us
To speak to a solicitor about pursuing action for a breach of lease, get in touch with us by calling 0345 872 6666 or fill in our online enquiry form and we will get back to you.
