Landlord and Tenant (Amendment) Act, 1980

Covenants against alienation.

[1931, s. 56]

66.—(1) A covenant in a lease (whether made before or after the commencement of this Act) of a tenement absolutely prohibiting or restricting the alienation of the tenement, either generally or in any particular manner, shall have effect as if it were a covenant prohibiting or restricting such alienation without the licence or consent of the lessor.

(2) In every lease (whether made before or after the commencement of this Act) in which there is contained or in which there is implied by virtue of the British Statute passed on the 5th day of May, 1826, and entitled “An Act to amend the Law of Ireland respecting the Assignment and Sub-letting of Lands and Tenements ” or by virtue of subsection (1) a covenant prohibiting or restricting the alienation, either generally or in any particular manner, of the tenement without the licence or consent of the lessor, the covenant shall, notwithstanding any express provision to the contrary, be subject—

(a) to a proviso that the licence or consent shall not be unreasonably withheld, but this proviso shall not preclude the lessor from requiring payment of a reasonable sum in respect of legal or other expenses incurred by him in connection with the licence or consent, and

(b) where the lease is made for a term of more than forty years and is made in consideration wholly or partially of the erection or substantial addition to or improvement or alteration of buildings, to a proviso to the effect that, in the case of any alienation of the tenement in contravention of the covenant effected more than seven years before the end of the term, no such licence or consent shall be required if notice in writing of the transaction is given to the lessor within one month after the transaction is effected, and

(c) where such alienation would cause a transfer or increase of any rates, taxes or other burden to or of the lessor, to a proviso that all expenditure incurred by the lessor by reason of the transfer or increase shall be reimbursed by the lessee to the lessor as and when so incurred and shall be recoverable from the lessee as rent under the lease.