It is a commonly held view by managing agents that a purchaser who takes on the assignment of a lease (the assignee) is liable for the arrears of ground rent and service charge of the outgoing leaseholder. In law this is not always the case.

However, forfeiture may be used against the purchaser even for the debts of the seller, so in practice a substantial threat remains on the purchaser.

Managing agents are advised to ensure that purchasers and sellers are made aware of debts before sale so that they are cleared at completion.

Covering Topics

  • Overview
  • Landlord & Tenant (Covenants) Act 1995
  • Liabilities After Assignment: Pre-1995 Act Leases
  • New Leases Post-1995 Act
  • Why is It Said That Assignments Are Liable No Matter Who Caused The Breach Or Arrears?
  • The Right Of Forfeiture
  • Continuing & Non-Continuing Breaches of Covenants
  • Practical Steps For Managing Agents
  • Year End Deficits Arising After Assignment
  • Further information

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