8. Security of Tenure Flashcards
Why are mandatory grounds not always preferable under 30(1)
2/3 mandatory grounds trigger compensation under 37(1A)
When is the CED of a lease which is ‘from’ starting date
Expires that day
Why are mandatory grounds preferable under 30(1), on the one hand
Bc court does not have discretion in whether to grant termination
Who decides rateable value for 37(1A) compensation
LA
When will residential use of property still attract security of tenure
If business is the principal use and residential is only incidental
What happens if SDLT payable and T holding over
Counted as extension of the lease, so account to HMRC
Where are tenant rights under ‘54 Act
24(1)
What must 26 notice state
Terms for new lease
What is no longer an option if 27 notice served
Service of another notice under 26
What does L state if serving notice under 25
If hostile or friendly and 30(1) grounds
26 ‘54 Act applies to what
T can request new tenancy
What is the consequence of failing to apply to court
T loses right to new lease
Rate of compensation for T less than 14 years
1 x multiplier x rateable value
Why should app to court always be made when 25/26 notice served
As a safety net for T
Who serves 25 notice
Competent L
When does T sign a statutory declaration to contract out of ‘54
If shorter notice than 14 days given by L
What Act gives security of tenure
‘54
What three things can be included in ‘rent’
Annual rent, service charge and insurance rent
Who is 27 notice served on
Immediate L
Unilateral notice used for what
Protect interest during court action w/ reg land
What do you look to in order to decide manner of service for 25/26 notice
Lease provisions
27 ‘54 Act
T serve notice to terminate tenancy
Under what part of ‘54 can L serve friendly/hostile notice to terminate
25
37(1A) ‘54 Act
Compensation for 30(1) grounds
What was needed for leases granted prior to June 2004 to contract out of ‘54
Court order
By when must L serve warning notice for T to contract out of ‘54 Act
At least 14 days before T bound to enter leave (unless waived)
For what notice between 25 - 27 is there no prescribed form
27
What is the rate of interim rent
MV if friendly, below if hostile
When might STD under 25 be 6 months from notice (generally)
If L wants T to move out
When might STD under 25 be 12 months from notice (generally)
If L wants T to stay in bc e.g. on high rent
What leases does security of tenure apply to
Properties occupied (At least partly) by T for business purposes as a lease
44 ‘54 Act applies to what
Competent L
How do you protect court action for reg land
Unilateral notice in LR
O’May v City of London ratio
If parties cannot agree on new lease terms, court starts from current tenancy
Can extensions be agreed to apply to court for 25/26 notice?
Yes
Street v Mountford?
Lease v. licence
What should L do if lease contracted out of ‘54, but T staying beyond CED
Seek express acknowledgment from T that T = tenant at will
How can extensions be agreed for time to apply to court
In writing
When is SDLT payable on a lease
If paid on original lease
By when must 27 notice be served
At least 3 months before date T wishes to leave
What is the benefit for T of applying for interim rent
Removes financial risk of 25 notice beating 26 notice
Does a lease under ‘54 Act include periodic tenancies?
Yes
25 ‘54 Act applies to what
L can serve friendly or hostile notice
Part of ‘54 Act on contracting out of security of tenure
38A
How do you protect court action for unreg land
Pending land action
When is the deadline for applying to court under 25/26
Day before PCD/STD
38A ‘54 Act applies to what?
Contracting out of ‘54 Act
What is the only way L can terminate lease protected by ‘54
By ground in 30(1)
What does the rate of compensation under 37(1A) depend on
Period of occupation of tenant
When can compensation under 37(1A) be excluded
T occupying for less than 5 years or parties agree amount
What can T do if L serves 25 notice w/ STD of more than 6 months
App to pay interim rent from earliest possible STD L could have specified under 25
Pending land action used for what
Protect interest during court action w/ unreg land
What are the rules on the PCD under 26
Min 6 and max 12 from date notice served - cannot precede CED
Rate of compensation for T 14 years+
2 x multiplier x rateable value
Who decides terms of new lease if parties cannot
Court
When can app to court be made after 26 notice srved
Any time after counter-notice served, or 2 months from notice if no CN
How is COMP different for lease
‘OS1’ is now OS2 if only part, ‘Money’ is rent (inc. deposit, service charge + insurance), and lease is ‘Proof’
Part of ‘54 Act on excluded tenancies
43
What must L highlight if opposing 26 notice
30(1) grounds in counter-notice
When is compensation not available, even if e, f or g relied on
If other factor also relied on which does not trigger compensation
What can L do if T serves 26 notice
Oppose within 2 months by counter-notice + 30(1) grounds
If parties cannot agree on new lease terms, court starts from current tenancy (case)
O’May v City of London
What is the multiplier for compensation under 37(1A)
1
What is ‘holding over’
T occupying beyond CED
When is 27 notice not necessary
If T to vacate by CED
When should app to court be made
Once 25/26 notice served
Does T retain security of tenure if he underlets
No
What shows which grounds under 30(1) are discretionary
‘Ought not’
For what 30(1) grounds is compensation available
e, f and g
What steps apply to pre-completion of a lease
COMP
How does the court decide other terms not in 32 - 34 if parties cannot agree for new lease
Start from current tenancy, but consider if still suitable
What is the knock-on effect of extending time to apply to court
Also extends PCD/STD
Under what part of ‘54 can T request new tenancy
26
For what two notices must T/L use prescribed form
25 and 26
Who is 26 notice served on
Competent L
What are the rules on the specified termination date under 25
Min 6 and max 12 from date notice served - cannot precede CED
Under what part of ‘54 Act can T serve notice to terminate tenancy
27
Procedure for excluding protection of ‘54 Act
L serves warning notice, T signes simple declaration (or statutory), and lease contains wording of exclusion as well as ref to notice + declaration
What case determines lease v. licence
Street v Mountford
Why might parties contract out of ‘54 Act
Lower rent + acceptable if short term + no amendments to premises
30(1) ‘54 Act applies to what
Grounds L can rely on to terminate ‘54 Act
When is the CED of a lease which includes starting date
Day before
24(1) ‘54 Act is what
Tenant rights
What happens if one side serves notice under 25/26, in terms of acts the other side can take
Other side cannot serve notice
Why might T serve 26 notice
To renegotiate rent, or to pre-empt 25 notice
Where are the principal terms of the new lease in ‘54 Act
32 - 34
Part of ‘54 on competent L
44
Three tenancies excluded from security of tenure
Agricultural, mining and fixed term not exceeding 6 months
When may L choose to serve counter-notice (but need not)
To state not in opposition to grant of new tenancy
Two ways T can protect right to new tenancy
Apply to court by day before PCD/STD, and apply to LR for pending land action (unreg) or unilateral notice (reg)
What does O’May v City of London show the court consider for terms of new tenancy
Justice and fairness - have to show terms are reasonable
