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ACP > 4.1 Property Management: Docs during lease lifetime > Flashcards

4.1 Property Management: Docs during lease lifetime Flashcards

1
Q

Why no burden to use high quality materials in LtA

A

Too high a burden

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2
Q

If T has opted to tax so UT has to pay VAT on premium for UL, what should UT ask for

A

Option + acknowledgment from HMRC + VAT invoice

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3
Q

If T is paying VAT on top of L’s costs under a licence, what should T get

A

Valid VAT invoice

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4
Q

When does licence not need to be registered

A

One-off consent +/or lease not registered

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5
Q

When is there no need for LtA to state assignee will observe and perform covenants and why

A

For new leases, as implied by statute - 3(1)(b) LTCA ‘95

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6
Q

What happens upon assignment of new lease under statute, and per what

A

T released from covenants - 5(2) LTCA

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7
Q

What section states 5 LT(C)A will not release CT from covenants if unlawful assignment (e.g. w/o consent)

A

11

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8
Q

Aubergine v Lakewood

A

Agreement ‘in principle’

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9
Q

If UT is being charged a premium, what are the two potential tax consequences

A

Paying VAT on premium and SDLT

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10
Q

If UT is paying a premium for UL, what should you check first

A

If HT is allowed to charge UT a premium under lease

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11
Q

Why is it unfair for any licence to expire on X date, w/o ability to get extension

A

Would happen automatically without considering the circumstances

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12
Q

Under CDM Regs, when will LtA say that L is to keep H&S file

A

If multi-let

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13
Q

How should you cap T paying L for L’s costs in granting licence

A

Reasonable and proper costs up to £X

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14
Q

In LtA, what O regarding T’s neighbours is reasonable, and what is not

A

O not to cause a nuisance/damage, but avoid O not to annoy or inconvenience - too subjective

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15
Q

What should you ensure LtA states, if acting for T, regarding costs

A

Limit paying L’s costs of consent to specific sum + VAT + reasonable disbursements, or reasonable and proper costs

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16
Q

What two things can L make as a condition of his consent for an alteration under 19(2) LTA

A

Recover expenses + make reinstatement a condition

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17
Q

Under LtA, should there be an O on T to carry out works? Why/why not?

A

No - would mean works not voluntary, so considered on RR

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18
Q

What section provides that benefit and burden of all T + L covenants pass on assignment

A

3(1)(b) LT(C)A

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19
Q

Why should T avoid paying L’s costs immediately

A

Too onerous and prescriptive

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20
Q

Why should T/UT/A resist paying VAT on L’s costs if capable of recovery

A

Shouldn’t be able to claim off (U)T/A just bc simpler than claiming from HMRC

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21
Q

How to stop parties agreeing to extend licence becoming agreement to agree?

A

State must be agreed within reasonable time

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22
Q

When is a DoV required for LtCU

A

If change of use not specifically envisaged in the lease

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23
Q

What is the usual covenant in a lease for structural alterations

A

Absolute

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24
Q

For T to claim compensation for improvements, what must T do under Part 1 LTA

A

Serve notice of intention to carry out works on L + obtain certificate from L/court once completed

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25
Q

What provision allows T to claim compensation upon termination for any improvements made

A

Part 1 LTA

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26
Q

Lambert v Woolworth ratio

A

‘Improvement’ per T

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27
Q

When should UL be contracted out of security of tenure

A

If lease also contracted out

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28
Q

Why should L avoid giving agreement in principle

A

May = full consent

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29
Q

Why should reinstatement be considered at RR

A

Would push rent up if disregarded

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30
Q

What two LA consents may be required for alterations

A

BR + possible PP

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31
Q

What two covenants are usually obtained for LtCU

A

T to obtain all necessary consents, and to pay for any increase in insurance premium

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32
Q

What will happen if UL is not contracted out of SoT

A

Implied surrender

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33
Q

If there is a qualified covenant for alterations under lease, what provision will be relevant

A

19(2) LTA

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34
Q

Should there be O to comply w/ insurers’ recommendations under LtA? Why/why not?

A

Can be prohibitively expensive, and not required

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35
Q

Why is it too high a demand for T to do things immediately under LtA

A

May be completely unreasonable

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36
Q

When should T pay L’s costs for licence

A

Within 7 days of written demand

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37
Q

Why might mortgagee need to consent to alterations by UT

A

States so in lease - T has to continue to comply, and UT will have covenanted to comply in LtUL

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38
Q

Why for LtA should T not need to get L’s approval for all Consents

A

Onerous

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39
Q

If proposed works by T are major, what might L insist on

A

CWs from T’s construction team

40
Q

For what kind of alienation is it necessary to state that incoming T will observe and perform covenants

A

Underlease

41
Q

For what improvements does Part 1 LTA not apply

A

if improvement is as a result of a statutory O (2(1)(b) LTA)

42
Q

If lease states need consent for alterations and UT wishes to carry out alterations, what happens

A

Need LtA between HT, UT, and HL

43
Q

Why might UL state L needs to consent to app for PP made by or on behalf of UT

A

Likely required by lease + LtU will state UT to comply w/ T’s Os

44
Q

If UT wishes to make changes to UL, consent of who required?

A

Both its L and head L

45
Q

As T is released from covenants under a new lease per 5(2) LTCA, what should lease state

A

T only bound ‘until released by virtue of LTCA’

46
Q

Why does L ensure that assignee also signs LtA

A

Gives privity of contract between L and assignee

47
Q

‘Improvement’ per T

A

Lambert v Woolworth

48
Q

What provision changes an absolute covenant to a fully qualified covenant

A

Para 3 Schedule 21 EA

49
Q

Under LtA, what right should L have to enter

A

Reasonable times on reasonable written notice

50
Q

Why will LtU state T not to allow UT to possess before UL completed

A

Will give UT SoT, so L would have to remove using 30(1) grounds

51
Q

Why is SP unlikely to enforce keep open clause in lease

A

Inequitable, too much supervision etc.

52
Q

What could L do if T allows UT to possess before UL completed, if LtUL states T was not to

A

L can sue both T and UT for breach of the LtUL

53
Q

What is the usual covenant in a lease for IDPs

A

Usually no need to get consent of L

54
Q

Can you contract out of Part 1 LTA?

A

Not technically, but possible by lease stating reinstate or T has not invoked procedure

55
Q

What provision allows L to charge reasonable expenses to T if covenant to get consent for A/UL upgraded to FQC

A

19(1)(a) LTA

56
Q

Why should you always check lease provisions when working out why various provisions have been included in licence, and if necessary

A

T has to continue to comply w/ lease provisions, and UL/A will have promised to comply w/ lease provisions in licence

57
Q

What premium for UL is too small for SDLT to be payable

A

£5k

58
Q

Agreement ‘in principle’

A

Aubergine v Lakewood

59
Q

When should T/UT/A resist paying VAT on L’s costs

A

If the VAT is recoverable from HMRC

60
Q

What provision permits any LtA to be subject to reinstatement

A

19(2) LTA

61
Q

If lease is contracted out of security of tenure, what will L want to see for UL

A

Evidence of procedure carried out to contract out UL

62
Q

For LtA, if subject to L approval of ‘Consents’, what should you ensure

A

May want to limit ‘Consents’ to PP only, and ensure L’s approval will not be unreasonably withheld or delayed

63
Q

If a licence is to expire as parties did not agree to extend, what should happen to the licence

A

All clauses EXCEPT those relating to costs should determine

64
Q

For T’s Os under LtA to e.g. make good damage caused, change from ‘immediately’ to what?

A

Do as soon as reasonably practicable/within X days of written demand

65
Q

What quality materials should LtA require T to use, and to what standard to carry out work

A

Only good quality, and to reasonable satisfaction of L

66
Q

What is the consideration regarding L’s title for alterations

A

Consent may be needed from PWB of any restrictive covenants

67
Q

When will L grant a licence to T - why

A

Formal assent to make changes to the lease

68
Q

When editing LtA, when should you define ‘L’s premises’

A

If unit is part of Centre

69
Q

19(2) LTA permits L to make what condition of T

A

L to make condition of LtA that T reinstate + can charge T for reasonable costs + any diminution in value/damage caused

70
Q

What is the likely enforcement of a ‘keep open’ clause requiring T to keep trading

A

Damages only

71
Q

How does L in effect contract out of Part 1 LTA

A

LtA states T has not involved procedure and/or requires reinstatement.

72
Q

What may T have to do if new lease, upon assignment

A

Give guarantee - 16 LTCA

73
Q

What does LtA usually state about its time period

A

Expires if not completed within X time

74
Q

When does a licence need to be registered

A

If Deed of Variation to vary the lease + lease registered

75
Q

What two covenants are usually included in LtA + LtUL

A

Assignee/UL to observe + perform covenants, and T not to allow assignee/UL to possess until A/UL completed

76
Q

When should any licence expire

A

Reasonable time within which Works are to start, OR UL/A to be agreed, e.g. 3 - 6 months, w/ ability to apply for extension

77
Q

Why limit L’s right to enter, but still allow

A

L shouldn’t interrupt business, but will want to supervise

78
Q

What case said giving agreement in principle may = full consent

A

Aubergine v Lakewood

79
Q

What must T’s improvements be for compensation under Part 1 LTA (x4)

A

Add letting value to premises, be reasonable, suitable, and not diminish value of any other property belonging to same L (3(1) LTA ‘27)

80
Q

Must DoV and LtCU be distinct?

A

No - can incorporate as long as LtCU is executed as a deed

81
Q

What provision is relevant if absolute covenant against alterations under lease

A

Equality Act - para 3 Schedule 21

82
Q

What should LtA state about reinstatement

A

Only if L reasonably requests, and consider provision at RR

83
Q

What is the effect of 5(2) LTCA

A

T under new lease released from covenants upon assignment

84
Q

3(1)(b) LTCA ‘95 has what effect

A

Assignee is automatically bound to observe and perform covenants if new lease

85
Q

Who are the parties to a LtUL

A

L + T + UT

86
Q

What is the usual covenant in a lease for non-structural alterations

A

(F)QC

87
Q

What section means it is technically unnecessary to provide that assignee will observe + perform covenants

A

3(1)(b) LTCA

88
Q

How to work out what is an ‘improvement’ under 19(2) LTA

A

Through the eyes of the T - Lambert v Woolworth

89
Q

2(1)(b) LTA ‘27 states what

A

Part 1 LTA does not apply if improvement as a result of a statutory O

90
Q

How is a licence usually given - C or deed

A

Deed

91
Q

If DoV used for LtCU what must happen for it to be valid - other than execution as deed

A

Reg at LR as changing lease

92
Q

19(2) LTA has the effect of what

A

Upgrades QC to FQC if the alteration is an ‘improvement’

93
Q

What provision states that reasonable adjustments must be made for disabled members of the public

A

Ch.15 Part 20 s.20 Equality Act

94
Q

Why should LtA state T not to allow assignee to possess until A completed

A

Ensures A enters into possession on terms approved by L

95
Q

When will UT have to pay VAT on top of any premium for UL

A

If underlease states so

96
Q

Who is required to pay VAT on premium for underlease and when?

A

T is required to if they have opted to tax, as this converts it from an exempt supply to a standard rated

ACP (12 decks)

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