SCHEDULES
SCHEDULE 12Transition
20Implied indemnity covenants on transfers of pre-1996 leases
1
On a disposition of a registered leasehold estate by way of transfer, the following covenants are implied in the instrument effecting the disposition, unless the contrary intention is expressed—
a
in the case of a transfer of the whole of the land comprised in the registered lease, the covenant in sub-paragraph (2), and
b
in the case of a transfer of part of the land comprised in the lease—
i
the covenant in sub-paragraph (3), and
ii
where the transferor continues to hold land under the lease, the covenant in sub-paragraph (4).
2
The transferee covenants with the transferor that during the residue of the term granted by the registered lease the transferee and the persons deriving title under him will—
a
pay the rent reserved by the lease,
b
comply with the covenants and conditions contained in the lease, and
c
keep the transferor and the persons deriving title under him indemnified against all actions, expenses and claims on account of any failure to comply with paragraphs (a) and (b).
3
The transferee covenants with the transferor that during the residue of the term granted by the registered lease the transferee and the persons deriving title under him will—
a
where the rent reserved by the lease is apportioned, pay the rent apportioned to the part transferred,
b
comply with the covenants and conditions contained in the lease so far as affecting the part transferred, and
c
keep the transferor and the persons deriving title under him indemnified against all actions, expenses and claims on account of any failure to comply with paragraphs (a) and (b).
4
The transferor covenants with the transferee that during the residue of the term granted by the registered lease the transferor and the persons deriving title under him will—
a
where the rent reserved by the lease is apportioned, pay the rent apportioned to the part retained,
b
comply with the covenants and conditions contained in the lease so far as affecting the part retained, and
c
keep the transferee and the persons deriving title under him indemnified against all actions, expenses and claims on account of any failure to comply with paragraphs (a) and (b).
5
This paragraph does not apply to a lease which is a new tenancy for the purposes of section 1 of the Landlord and Tenant (Covenants) Act 1995 (c. 30).