Licence for alterations – inadvertent alteration of lease terms – consequences

This case is a reminder of the effects that a licence might impliedly release a tenant from compliance with other lease covenants. Other tenants in a development may be adversely be affected if a landlord has waived or modified another tenant’s obligations. Thus a landlord may find itself in breach to some of its tenants, such as covenants not to waive or release the covenants of other tenants.

The background

The lease

The claimants (F) were lessees of flat 6 a second floor flat in Eaton Mansions, Cliveden Place, London SW1, a prestige development on the Grosvenor Estate in prime central London. Their flat was immediately beneath flat 8 which is on the third floor and above that is flat 10 on the fourth floor. The subject leases were in common form (save for the demise) and were granted for terms of 75½ years less five days from 24 June 1978.