2.1 Leases - Contents Flashcards
What are included in repair obligations?
Expressly stated
Clearly defined
- Burden
- Extent
Includes
- Renewal
- ‘Good and substantial repair’ > High burden
- ‘Keep in repair’
Determined by property
- Age
- Character
- Environment
Multiple occupation > Tenants to keep ‘inner skin’ in good order
- Landlord maintains structural elements
- Tenant pays service charge
What are included in Landlord’s repair and service charges?
Repair costs
Expenses > Providing services to common parts + ALL tenants
Additional controls (residence)
- Works > £1,000 => Must consult Tenants
- Reasonably incurred costs
- Work > Reasonable standard
=> Landlord can recover costs from Tenant
What is required for insurance covenants?
Tenant to pay insurance
- Even if Landlord puts property at risk
Created by;
- Tenant
- Landlord’s agreement to insure
Covers;
- Full reinstatement value
- Professional fees
Appropriate for multiple units in one property
What is required for alterations?
L’s written consent (qualified covenant) => Long leases
- NOT unreasonably withhold
- NOT demand extra payment (except reasonably incurred expenses)
Effect on value of property/adjacent property
- Improvement (L’s consent NOT unreasonably withheld, NO additional rent/premium charge)
- Diminished (L can claim reasonable capital sum from T)
- NO effect (L can covenant T to reinstate premises to former condition on lease determination)
What restrictions on change of use of property can User impose?
Absolute
- May reduce rent on review
Qualified
- L’s consent required
- L can NOT demand premium/extra rent
- L can request Applicant to pay costs
Change of use can include;
- Applicant’s legal costs
- Fee/Extra rent payable (alterations to structure proposed)
What is required for plans in leases?
Signed by ALL parties
Comply w Land Registry Rules
For part leases
- NOT whole leases
What details for rent should be included?
L to give exclusive possession to T
- T to pay rent to L
Rent
- Includes service charges
- If NOT paid => Remedy of forfeiture available
- If pure rent arrears (written leases, commercial property) => CRAR available
Accuracy
- Commencement date
- Rent free periods
- Quarter dates
What is required for rent review?
Upward-only (often)
BOTH parties’ written approval > Approve rent
Time NOT of essence
- UNLESS stated otherwise
Define valuation formula
- Rack rent (valuer assesses)
- Market rent (reference to stipulated criteria > detailed assumptions allowed)
- Index linked (RPI)
Trigger procedure
- L to notify T > Rent review at rent review date/fixed date
Referral of rent > Arbitrator
DR procedures
- Usually arbitration allowed
Interest on back rent
What is required for alienation?
Allows
- Assignment
- Subletting
- Mortgages
Restrictions
- Expressly provided
- L’s consent > If required > Must be reasonable (explicit/added by statute)
- Notice => Landlord
What are the options for lease terms?
Length
- Fixed term (legal)
- NO fixed term (equitable)
Start date > Max. 21 years
Terminable
- Death of marriage/civil partnership
- 90-year lease > On notice following specified event
Periodic tenancy
- Renews itself at end of each period (UNLESS terminated by notice to quit)
- By written doc/conduct
