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Leasehold covenants: parting with or sharing possession versus sharing occupation; control, exclusion and virtual assignments - principles and authorities (England and Wales)

Practice notes
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Possession

'Possession' and 'occupation' are not synonymous terms. A covenant in a lease that bars parting with possession is not breached where, in law, the tenant retains possession, even if another is permitted to use and occupy the premises. Possession encompasses the entitlement to collect rents and income from the property. A tenant only parts with possession if the person admitted to occupation holds the power to exclude everyone else, the tenant included, from the premises. Hence, in Reiner v Triplark, the tenant parted with possession by assigning the lease, notwithstanding that the assignment was unregistered at HM Land Registry and legal title remained with the tenant; the assignee had assumed control of the premises and could exclude all others. Where there is a prohibition on sharing possession, the term ‘possession’ is construed with the same strictness and does not extend to, and therefore does not forbid, sharing occupation. A covenant against sharing possession prevents a tenancy held by a single lessee from being turned into a joint...

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Web page updated on 21/05/2026

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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

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