Breach of covenant

Adams’ primary goal is to help our clients avoid commercial property related disputes happening at all. However, should an issue arise, including one relating to breach of covenant, we are well placed to advise on all relevant legal and practical aspects concerning the problem, and will work with you and your business to provide appropriate and effective commercial solutions.

We represent both landlords and tenants on a variety of breach of covenant disputes, although of course not on the same case at the same time. We will act in all litigation arenas, including the High and County Courts, Leasehold Valuation Tribunals and in mediation, as well as the process of Arbitration Dispute Resolution.

What is breach of covenant?

Covenants are restrictions on the property – often called a ‘restrictive covenant’ – which the tenant will enter into with the landlord upon commencing the lease.

Examples of restrictive covenant breach could be:

• Alterations to the property without consent
• Insufficient insurance
• Use of the property outside the specified terms or licence
• Unpaid or overdue rent
• Not keeping the business open

Landlords should monitor the use of their properties over the course of the lease, to ensure that the business is only using it within the specified terms. If a breach is discovered then the next step could be the landlord’s right to forfeit the lease – i.e. terminate the contract early.

The breach of covenant process

The process for a breach of contract can be complicated as there are different considerations depending on the type of breach. We can advise you, whether you are a landlord or tenant, as to what your next move should be and assist you with a smooth resolution.

Before making an enquiry please note that like most solicitors, Adams does not handle claims for less than £10,000. If you seek recompense for less than £10,000, the small claims court is a more efficient and cost-effective route.