At the end of a tenancy, L will be entitled to compensation from T for any breach of repair (and for failing to put the premises into their original condition).

The starting point is to say that T is liable for the ‘reasonable cost’ of doing the repair works, plus loss of rent for the period, until the works have been completed. However, this is all subject to s18(1) LTA 1927 which says that damages for breach of repair payable on termination of the lease shall be limited to the reduction in value of L’s reversion. But, how do you calculate that amount?

Suppose L has a charge over a rent deposit (ie money is given to L to deposit in a separate account in L’s bank, but the money is declared as belonging to T, and is charged by T to L). If L then assigns its reversion, and the new L moves the rent deposit money into an account at its new bank, is it necessary for there to be a new charge in favour of the new holder of the reversion? In practice, this rarely happens and assignee Ls will simply open the new deposit account, and will not bother to take a new charge nor register it at Companies House.

For any guarantee to be valid, it needs to be in writing and it must be signed by the guarantor (Statute of Frauds 1677).

Section 6 Law of Distress Amendment Act 1908 enables L to serve a notice on a sub-T, when T is in arrears. The effect of serving the notice on the sub-T is to assign T’s right to receive the rents from sub-T over to L. Thus, once a notice is served on the sub-T, the sub-T then becomes the immediate T of L (and sums payable under the notice are deemed to be the rent).