Hemingway Securities Ltd v Dunraven Ltd (1995) 71 P&CR 30

Chancery Division

Basic Facts: L let some property to T for 25 years at £145,000 per annum. A clause concerning the assignment of the lease stipulated that it could not be done without L’s permission (not unreasonably withheld) and that the assignee was to enter into a direct covenant with the lessor to pay the rent reserved.

Issue for the Court: The court examined whether a restrictive covenant benefiting the landlord's reversion and not just the use of the land could bind subsequent assignees.

Held: The court held that a mortgagee had priority over a lease due to registration rules under the Land Registration Act.

• Jacob J held that a restrictive covenant benefiting the landlord's reversion is well-settled and that such covenants run with the land, binding subsequent assignees.