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PLP > 9.1 Contents of a Lease: Repair and Insurance > Flashcards

9.1 Contents of a Lease: Repair and Insurance Flashcards

1
Q

What case shows SP is a possible remedy for breach of repair covenant

A

Rainbow Estates

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2
Q

Limit on CRAR

A

6 years arrears

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3
Q

What is ‘The Code’ short for

A

The Code for Leasing Business Premises

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4
Q

What can T do if 146 notice served

A

Apply for relief

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5
Q

What to check if T has O to redecorate

A

No veto over colours + no O if already done in last 12 months

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6
Q

Two kinds of security L may get from T

A

Deposit and guarantee from 3rd

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7
Q

Before when do leases of more than 21 years have to be reg

A

Prior to 13 Oct 2003

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8
Q

Why is an SP order always unlikely

A

Due to constant supervision

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9
Q

When are damages for breach of repair covenant under 18 LTA ‘27 not available

A

If premises to be pulled down or structurally altered after Lease

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10
Q

What way can L get around s.18 LTA restrictions

A

By using Jervis v Harris clause to enter + repair himself

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11
Q

Where are the uses of deposit by L set out

A

In deposit deed

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12
Q

1(1) LP(R)A requires what

A

146 special notice if forfeiture for breach of repair covenant + lease 7+ w/ 3 left

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13
Q

In what kinds of buildings is it important that latent/inherent defects are not the responsibility of T

A

Newer properties as not yet apparent

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14
Q

Per what statute must 146 notice be ‘special’ for forfeiture due to breach of repair covenant

A

LP(R)A s. 1(1)

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15
Q

What must be considered if lease of only part (in terms of access + costs)

A

Need access to common areas + pay service charge between Ts

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16
Q

When is there no need to serve a special s.144 notice despite L forfeitting the lease for breach of repair covenant

A

Either lease does not have 3 years left, or lease is for less than 7 years (under LP(R)A)

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17
Q

How is insurance premium recouped by L

A

Through insurance rent from Ts

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18
Q

What does the ‘demise’ refer to

A

Extent of the property

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19
Q

When is a Schedule of Condition likely

A

If property is older

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20
Q

When should the cost of repairs carried out by L be recoverable from T

A

Within 14 days of written demand

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21
Q

When does forfeiture NOT require 146 LPA ‘25 notice

A

If for non-payment of rent

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22
Q

Jervis v Harris clause is what

A

Self-help clause

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23
Q

What clause must L negotiate in order to have right of forfeiture

A

Forfeiture clause

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24
Q

What should T not be liable for in respect of damage caused by IRs

A

To repair or replace anything damaged by IRs

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25
Q

How many references to ‘Insured Risk’ in repair clause and where

A

Twice - exclude repair O if caused by Insured Risk, and exclude replacing F&F if damage caused by IR

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26
Q

What replaces TR1 in agreeing a lease

A

The lease itself

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27
Q

What is an FRI lease

A

Full repairing and insuring lease

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28
Q

What must 146 notice set out

A

Breach, require remedy + T to pay compensation

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29
Q

What should the duty to replace items exclude liability for

A

Those damaged by an IR

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30
Q

When is an injunction unlikely to be awarded

A

If damages are appropriate and sufficient

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31
Q

What is the process for forfeiture for breach of repair covenant if covered by LP(R)A

A

Serve special 146 notice

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32
Q

146(11) LPA ‘25

A

No 146 notice for forfeiture in non-payment of rent

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33
Q

What should T do if L reserves right to re-enter premises (amending clause)

A

Make it upon reasonable notice during normal business hours unless it is an emergency

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34
Q

When will rent suspension clause NOT apply

A

If insurance policy made void due to act/omission of T

35
Q

If lease clause says replace all items w/ identical, what should it change to for T

A

Only if beyond economic repair, and only substantially similar

36
Q

What should any covenant for T to yield up be to

A

Satisfaction of L’s surveyor acting reasonably

37
Q

What does L usually get insurance for if there is a rent suspension clause

A

Insurance for that period

38
Q

What must a 146 ‘special’ notice state

A

T’s right to serve counter-notice within 28 days

39
Q

When does CRAR apply

A

7 clear days’ notice to T + at least 7 days’ rent due

40
Q

Three typical IRs

A

Fire, water pipe bursts and riot

41
Q

What happens if T serves counter notice to 146 special notic

A

L must get leave of court to continue

42
Q

Rainbow Estates shows what

A

Specific performance for repair obligation possible, but only if unusual, e.g. no Jervis v Harris and no forfeiture clause

43
Q

Why are insurance rent and service charge included as Rents

A

To take advantage of remedies for non-payment

44
Q

SP repair case

A

Rainbow Estates

45
Q

What is the LR priority search for part of the property

A

OS2

46
Q

Why is recovery of damages for unpaid rent limited to 6 years

A

Claimed as debt, so capped under LA ‘80

47
Q

What defects should be excluded for T

A

Latent and inherent defects

48
Q

What Code provides tenant-friendly guidelines for leases

A

The Code for Leasing Business Premises

49
Q

What is the benefit to L of FRI leas

A

Clear income stream

50
Q

What guideline supports ‘maintain’ in repair

A

Code for Leasing Business Premises

51
Q

If property has benefit of RoW, what do you advise T on

A

Adequacy

52
Q

What is the limit on damages for non-payment of rent

A

6 year period prior to Ps, claimed as debt

53
Q

Why is mortgagee consent needed if on OC

A

Bc of Restriction on OC

54
Q

How is SDLT calculated for leases

A

Based on term of lease, rent and any premium paid

55
Q

s.18 LTA ‘27 applies to what

A

Damages for breach of repair covenant

56
Q

What doc is used if delay between agreeing terms of lease + granting leas

A

Agreement for lease

57
Q

Rainbow Estates key

A

SP repair

58
Q

Rainbow Estates ratio

A

SP is possible for breach of repair covenant

59
Q

In what case may SP be likely for breach of repair covenant

A

Exceptional - no Jervis nor forfeiture clause

60
Q

What if lease says rent is still payable in case of damage by IR

A

Replace w/ rent suspension clause of all rents if unfit for occupation and use

61
Q

When does CRAR not apply

A

if lease forfeited

62
Q

Jervis v Harris = what

A

Self-help clause

63
Q

What if lease says no O to apply insurance monies to reinstate property after damage by IR

A

Replace w/ O to use monies as such + L to make up for shortfall

64
Q

Five possible remedies for breach of rent clause

A

Forfeiture, damages, CRAR, deposit and guarantor

65
Q

What two things does L look at for covenant strength of prospective T

A

Solvent and reputable (for covenants)

66
Q

What is CRAR

A

Seizure of goods

67
Q

If lease clause says put and keep in repair, change to what for T

A

Maintain or use Schedule of Condition

68
Q

What four options are always available as remedy

A

Forfeiture, damages, deposit or pursue guarantor

69
Q

What should T ask for a copy of prior to grant, if insured

A

Copy of insurance policy

70
Q

When does Iqbal apply

A

Alteration under 19(2) LTA ‘27 - reasonable to reject if serious justified structural concerns

71
Q

Why are newly incorporated companies as tenants risky

A

No financial history

72
Q

When is rent payable on if four equal annual instalments

A

Quarter Days

73
Q

What shows no 146 notice needed for forfeiture in case of non-payment of rent

A

146(11) LPA

74
Q

LP(R)A s.1(2) requires what

A

146 special notice if damages for breach of repair covenant + lease 7+ w/ 3 left

75
Q

Statute on damages for breach of repair covenant

A

s.18 LTA ‘27

76
Q

What are damages for breach of repair covenant limited to under s.18 LTA ‘27

A

Reduction in L’s freehold interest

77
Q

What three things does L look for

A

FRI lease, covenant strength and security

78
Q

Six possible remedies for breach of repair covenant

A

Forfeiture, damages, self-help, SP, deposit or pursue guarantor

79
Q

If L repairs damage himself, what can L claim

A

Reasonable and proper costs as debt

80
Q

Five things to check on OC

A

Owner = prospective landlord, class of title, mortgage, burdens and benefits

81
Q

What should the duty to maintain the property in repair exclude liability for

A

Repair caused by Insured Risks

82
Q

From when do leases of more than 7 years have to be reg

A

Post 13 Oct 2003

83
Q

What do the LRA require in leases of registrable properties

A

Prescribed Lease Clauses

84
Q

What clause must lease have for L to enter and carry out repairs himself

A

Jervis v Harris clause

PLP (12 decks)

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