Virtual assignments: breach of covenant against parting with or sharing of possession

Comments on the Chancery Division decision in Clarence House Ltd v National Westminster Bank Plc on whether the alienation covenant in a lease of commercial premises had been breached by the tenant effecting a virtual assignment of it, under which all the economic benefits and burdens of the lease were transferred to a third party without there being any actually assignment of the leasehold interest or change in occupancy.

Return of deposits

Explores case law illustrating the circumstances in which the courts are likely to order the return of a deposit in the event of a buyer's default. Notes the unwillingness of the courts to apply the rule on penalties to deposits and discusses the court's discretion under the Law of Property Act 1925 s.49(2) to order repayment. Focuses on the Chancery Division ruling in Aribisala v St James Homes (Grosvenor Dock) Ltd giving guidance on the circumstances in which the discretion under s.49(2) should be exercised.

Insolvency: ordering a sale of the family home

Comments on the Chancery Division ruling in Nicholls v Lan on whether the interests of a bankrupt husband's creditors prevailed over those of the wife, despite her circumstances being exceptional within the meaning of the Insolvency Act 1986 s.335A on account of her suffering from chronic schizophrenia, where the wife was the joint owner of another property which could be realised to buy out the trustee in bankruptcy's half share in the equity of the matrimonial home.