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Review Your SQE 1 Practice Records

Examination Timing: 00H01M59S

Samantha is a dentist who practices from premises at 45 High Street, of which she owns the freehold. In 2005, she leases the upstairs of the building to Alex and includes in the lease a covenant not to use the upstairs of the property as a dental surgery. The covenant does not touch and concern the land. Samantha sells her practice (and the reversion of the upstairs unit) to Lisa, who continues to practice from the downstairs. Alex subsequently begins to use the upstairs premises as a dental surgery. 

Which of the following statements best describes the legal position?

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As the lease was granted after 1996, the Landlord and Tenant (Covenants) Act 1995 applies. Although the covenant does not touch and concern the land, an assignee of the reversion (Lisa) takes subject to the benefit and burden of all landlord and tenant covenants. This means that Lisa can enforce the user covenant against Alex despite the covenant not touching and concerning the land. Under the doctrine of privity of estate, Lisa (as the freeholder) and Alex (as the leaseholder) are in an enforceable relationship by virtue of the Landlord and Tenant (Covenants) Act 1995. 

Key Point: The Landlord and Tenant (Covenants) Act 1995 allows an assignee of the reversion to enforce covenants against the tenant, regardless of whether the covenant touches and concerns the land. This statutory provision ensures continuity and enforceability of leasehold covenants when property interests change hands.

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