UK Leasing Brighton Ltd and others v Topland Neptune Ltd and another; Zinc Cobham 1 Ltd and others v Adda Hotels and others

Landlord and tenant – Assignment of lease. A lease was granted to a tenant (T1). T1's obligations under the lease were guaranteed by G. T1 assigned the term of the lease to another (T2), in breach of a covenant in the lease. Accordingly, that assignment was an 'excluded assignment' within the meaning of s 11 of the Landlord and Tenant (Covenants) Act 1995 and T1, as the original lessee and G, as the guarantor, were not released from their liabilities in relation to the covenants in the lease. The parties wished to bring about a result whereby the term of the lease was again vested in T1 and whereby the tenant's obligations under the lease were guaranteed by G under a fresh guarantee. The Chancery Division held that it was open to the parties to proceed with a direct re-assignment of the lease by T2 to T1, with T1's obligations being guaranteed by G in a new guarantee. Such arrangement was not invalidated by s 25 of the Act.

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