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Overriding lease
Practical Law UK Glossary 2-107-6955 (Approx. 3 pages)
Glossary
Overriding lease.
The term "overriding lease" is sometimes used to mean a "lease of the reversion" (see Lease of the reversion).
However, this can cause confusion as "overriding lease" has a specific meaning under the Landlord and Tenant (Covenants) Act 1995 (LTCA 1995).
For the purposes of section 19 of the LTCA 1995, if the existing tenant defaults on payments of rent or service charge due, and the landlord serves a former tenant or guarantor with notice under section 17 of the LTCA 1995 requesting payment, then the party making the payment is entitled to an overriding lease. The party taking the overriding lease would become the direct tenant of the landlord and the immediate landlord of the defaulting existing tenant.
If such an overriding lease is granted, it must:
- Be for a term equal to the term of the existing lease plus three days or, where this is not possible due to the length of the landlord's reversionary interest, the longest term possible without displacing the landlord's interest.
- Contain the same covenants as the existing lease which it overrides (except for personal covenants, and subject to any modifications agreed between the claimant and the landlord).
(Section 19, LTCA 1995.)
For more information on overriding leases under the LTCA 1995, see Practice note, Section 17 of the Landlord and Tenant (Covenants) Act 1995: Overriding leases.