Disputes about Leases

Clarifying Lease Obligations and Resolving Complex Disagreements

Leases are detailed legal contracts that define the rights and responsibilities of both landlords and leaseholders. Yet even the most carefully drafted lease can give rise to disagreement — especially when the wording is open to interpretation or circumstances change over time.

With a rise in mixed-use and high-rise developments, lease disputes are increasingly complex and financially significant.

At The Jonathan Lea Network, we deliver practical and strategic advice to help clients interpret their leases accurately, resolve disputes efficiently, and avoid unnecessary litigation. We act for both landlords and leaseholders, ensuring clarity, compliance, and fair outcomes for all parties.

What Is Lease Interpretation?

Lease interpretation involves determining the correct legal meaning of the words used in the lease. Courts and tribunals apply established principles to understand what the parties intended when the lease was granted, considering the document as a whole, its context, and the commercial purpose behind it.

Even minor differences in phrasing can lead to significant differences in liability or responsibility. For example, whether a covenant to “repair” also implies an obligation to “renew”, or whether a “structural” element includes internal walls or only the building frame.

Our solicitors regularly advise clients on how to read, apply, and enforce lease provisions, avoiding misinterpretations that commonly result in repair disputes or enforcement actions.

Common Lease Interpretation Issues

Disputes often arise because one party reads the lease differently from the other. Typical examples include:

• Repair and maintenance obligations: whether the landlord or tenant is responsible for certain works, such as roof repairs or window replacements.
  
• Service charge scope: whether specific costs (for example, legal fees or management costs) are properly recoverable.
  
• Definition of “demised premises”: what parts of the building are included within a flat or unit.
  
• Alterations and improvements: what level of consent is required for refurbishment, structural changes, or installations like double glazing.
  
• Use restrictions: whether activities such as short-term letting, running a home business, or keeping pets breach the lease.
  
• Insurance and reinstatement clauses: who must insure and what happens after damage by fire or flood.
  
• Forfeiture triggers: when and how a landlord may re-enter for breach of covenant.
  

Each case turns on the precise lease wording, factual circumstances, and conduct of the parties. We help clients clarify these provisions and obtain legally sound, commercially fair outcomes.

Understanding Leasehold Covenants

Covenants are the binding promises set out in a lease. They can be positive (requiring action, such as paying rent or maintaining property) or negative (restricting certain activities, such as subletting or altering the flat).

Broadly, leasehold covenants fall into three categories:

1. Landlord covenants: for example, repairing structure and common parts, providing services, insuring, and observing quiet enjoyment.
   
2. Tenant covenants: such as paying rent and service charges, keeping the flat in good condition, and not causing nuisance.
   
3. Mutual covenants: obligations that benefit or restrict all parties, such as noise or use restrictions across the building.
   

When a covenant is unclear or allegedly breached, professional interpretation is essential. Our solicitors assess both the wording and the wider legal principles that determine whether a breach has occurred, and whether remedies such as damages, injunction, or specific performance may apply.

Typical Covenant Disputes

Lease covenant disputes can range from minor disagreements to major litigation. Common scenarios include:

• Alleged breaches of repair obligations: disputes over whether works fall under landlord or tenant responsibility
  
• Unauthorised alterations: tenants making changes without written consent, or landlords unreasonably withholding consent
  
• Use and nuisance complaints: such as noise, parking, pets, or Airbnb-type lettings in breach of user covenants
  
• Failure to insure or reinstate: issues following damage or destruction of the property
  
• Breach of quiet enjoyment: where a landlord’s works or management actions interfere with the tenant’s occupation
  
• Unreasonable refusal of consent: under Sections 19 and 19A of the Landlord and Tenant Acts 1927 and 1988
  

Each case turns on the precise lease wording, factual circumstances, and conduct of the parties.

Legal Principles Governing Lease Interpretation

Courts follow key principles when interpreting leases, guided by leading cases such as Arnold v Britton [2015] UKSC 36 and Wood v Capita Insurance Services [2017] UKSC 24. These decisions establish that interpretation must balance strict wording with commercial practicality.

Key principles include:

• Literal and contextual interpretation: words are given their ordinary meaning within the wider context of the lease.
  
• Commercial common sense: clauses are interpreted to make business sense, not to produce absurd results.
  
• Purpose and structure: the lease’s overall purpose and layout influence how clauses interact.
  
• Contra proferentem rule: ambiguities may be interpreted against the drafting party, often the landlord.
  

Understanding these principles allows us to anticipate how a disputed clause is likely to be interpreted, and to build your case or defence accordingly.

Resolving Lease Interpretation & Covenant Disputes

Prompt, informed action can avoid escalation and preserve commercial relationships. We help clients achieve practical solutions through:

1. Lease Review and Legal Opinion: We analyse the lease as a whole, including any variations or side letters, and provide a written opinion on the likely legal interpretation. This clarifies positions early and guides negotiations.

2. Negotiation and Mediation: Where possible, we seek to resolve disputes through reasoned correspondence or structured mediation, saving both sides time and cost.

3. Tribunal and Court Representation: If agreement cannot be reached, we represent clients before the First-tier Tribunal (Property Chamber), County Court, or High Court on matters such as:

• Determining repair or service obligations
  
• Enforcing or defending breach of covenant claims
  
• Seeking declarations on lease interpretation
  
• Applying for injunctions or specific performance
  
• Opposing forfeiture or defending possession proceedings
  

Our litigation team balances firm advocacy with realistic settlement advice, ensuring proportionate, cost-effective outcomes aligned with your objectives.

For Landlords and Managing Agents

We help landlords and managing agents enforce lease terms while maintaining constructive relationships with leaseholders. Our services include:

• Drafting and serving Section 146 notices (Law of Property Act 1925) for alleged breaches of covenant
  
• Advising on reasonableness of consent refusals
  
• Preparing deeds of variation or rectification agreements to correct unclear drafting
  
• Advising on recovery of legal and enforcement costs through service charges or administration charges, where permitted by the lease
  
• Supporting freeholders in Tribunal proceedings or possession claims
  

By acting early, landlords can preserve their position and avoid waiving breaches inadvertently.

For Leaseholders and Tenants

We also represent leaseholders and tenants facing enforcement action or uncertainty over their contractual responsibilities. Our assistance includes:

• Reviewing alleged breaches and advising on defences
  
• Negotiating consent for alterations or assignments
  
• Challenging unreasonable demands, refusals, or restrictions
  
• Applying to the Tribunal for determination of breaches or declarations
  
• Defending against forfeiture threats or possession proceedings
  

We ensure tenants’ statutory protections are upheld and that disputes are resolved efficiently and fairly.

Why Choose The Jonathan Lea Network?

• Proven Tribunal and Court Experience We have experience of representing both landlords and tenants in the First-tier Tribunal / civil courts.
  
• Strategic and Commercial Approach We focus on practical outcomes that preserve relationships and control costs.
  
• Specialist Leasehold Knowledge Our team combines deep understanding of lease interpretation with extensive dispute resolution experience.
  
• Transparent Fees Clear, staged pricing and fixed-fee options wherever possible.
  
• National Reach, Local Insight Based in Haywards Heath, offering accessible, responsive support throughout England and Wales.
  

How We Can Help

Our team can assist you with:

• Interpreting complex or ambiguous lease clauses
  
• Advising on covenant breaches or enforcement
  
• Drafting or responding to Section 146 notices
  
• Negotiating lease variations or rectifications
  
• Representing you in Tribunal or court proceedings
  
• Providing written legal opinions for use in negotiation or mediation
  

Timely legal advice clarifies obligations, prevents unnecessary escalation, and safeguards your property and financial interests.

Contact Jonathan Lea Network today for a free initial consultation. 

If you’re facing uncertainty over lease wording, alleged breaches, or enforcement action, our experienced leasehold solicitors can help. Please call us on 01444 708 640 or email us at wewillhelp@jonathanlea.net 

Frequently Asked Questions

Learn More: How Lease Extensions Work and Why They Matter

For a clearer understanding of leaseholder rights and the practical steps involved, watch our video featuring Kent Reynolds, Senior Solicitor at Jonathan Lea Network.

Kent explains the lease extension process, common pitfalls, and how expert advice can protect your property’s long-term value. These same principles underpin our wider leasehold services, including enfranchisement, RTM, and deeds of variation.

Photo by Isaac Quesada on Unsplash