Landlord and Tenant (Amendment) Act, 1980

Covenants restrictive of user.

[1931, s. 57; 1967, s. 27]

67.—(1) A covenant in a lease (whether made before or after the commencement of this Act) of a tenement absolutely prohibiting the alteration of the user of the tenement shall have effect as if it were a covenant prohibiting such alteration without the licence or consent of the lessor.

(2) In every lease (whether made before or after the commencement of this Act) of a tenement in which there is contained a covenant prohibiting either expressly or by virtue of subsection (1) the alteration of the user 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 to the effect 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) unless the alteration involves the erection, provision or reconstruction (otherwise than as an improvement within the meaning of subsection (3)) of any building or structure, to a proviso that no fine or sum of money in the nature of a fine (other than any sum authorised by this section) nor any increase of rent shall be payable for or in respect of the licence or consent, and

(c) if the alteration 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 by the lessor as rent under the lease.

(3) In this section and section 68, “improvement” means any addition to or alteration of a building or structure and includes any structure which is ancillary or subsidiary thereto but does not include any alteration or reconstruction of a building or structure so that it loses its original identity.

(4) The references in section 29 of the Act of 1967 to an improvement shall be construed as references to an improvement within the meaning of subsection (3).