The law relating to the passing of the benefit and burden of covenants in a lease has been drastically changed by the Landlord and Tenant (Covenants) Act 1995 (the 1995 Act), which came into force on 1 January 1996. All sections of the Act apply to new leases, i.e. to leases granted on or after that date, otherwise than in pursuance of an agreement entered into, or a court order made, before that date. A lease granted pursuant to the exercise of an option is an old lease if the option was granted before 1996. If an old lease is so substantially varied as to effect a surrender and re-grant by operation of law after 1995, the lease that arises in its place is a new lease for the purposes of the Act. An overriding lease granted after 1995 is a new lease only if the lease in respect of which the tenant made payment in accordance with section 17 of the 1995 Act was itself a post-1995 lease (see 7.5.3 below).
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- Enforceability of leasehold covenants
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- Chapter 7