Defective Deed of Variation

Dean was instructed the day before a final hearing by a freeholder in a slightly misconceived claim for forfeiture. The freeholder relied on an alleged breach of the covenant to make building insurance payments.  The lease originally stated that the leaseholder would be responsible for obtaining the building insurance on the property, however as a result of the freeholder becoming unhappy at the leaseholder’s repeated failure to do so, a Deed of Variation was executed by the parties with the intention of requiring the freeholder to obtain the insurance policy and the leaseholder to meet the costs of such insurance. However the Deed of Variation was drafted in such a way that it did not achieve that aim. Having noted the deficiency Dean was able to negotiate a favourable settlement of the proceedings for the freeholder, which included the execution by the parties of a correctly drafted Deed of Variation.