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PLP > 9.2 Contents of a Lease: Alterations, Change of Use, Term and Rent > Flashcards

9.2 Contents of a Lease: Alterations, Change of Use, Term and Rent Flashcards

1
Q

What does the Code suggest exercising break clause for T should be dependent on

A

Paying rent, vacating and no underleases

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2
Q

What is payment of rent presumed to be - advance or arrears

A

Arrears

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3
Q

What are the usual Quarter Days on which rent is payable

A

25 March, 24 June, 29 September, 25 December

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4
Q

What case determines what is an ‘improvement’ for 19(2) LTA

A

Lambert v Woolworth

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5
Q

What is an alternative way to avoid implied surrender if want to vary premises of current lease

A

Grant new lease for additional premises

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6
Q

What is an alternative way to avoid implied surrender if want to vary term of current lease

A

Grant reversional lease

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7
Q

When is it unlikely T can exercise break clause

A

If conditional on repair, as will never be to L’s satisfaction

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8
Q

What happens if Deed of Variation affects premises or term

A

Implied surrender + new lease granted

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9
Q

Part of LTA applying to alterations

A

19(2) LTA

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10
Q

Does 19(2) apply to fully qualified covenants?

A

No

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11
Q

19(3) LTA does what

A

Prohibits L from demanding payment for consent unless change of structure

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12
Q

Who do you check w/ to know if BR needed

A

Surveyor

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13
Q

Two cases applicable to 19(2) LTA

A

Lambert v Woolworth and Iqbal

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14
Q

What case determines what is ‘unreasonable’ for 19(2) LTA

A

Iqbal

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15
Q

When is a reversionary lease unnecesary

A

If ‘54 Act applies, as can hold over

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16
Q

What is a fully qualified covenant

A

L’s consent not to be unreasonably withheld or delayed

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17
Q

What are the four L’s

A

Lease, Law, Landlord’s title and LA consents

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18
Q

‘54 Act consequence of implied surrender

A

Contracting out procedure no longer relevant unless done again

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19
Q

When do 19(2) and 19(3) LTA apply

A

Qualified covenant

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20
Q

What two things must Deed of Variation not affect

A

Premises or Term

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21
Q

What happens if lease variation goes beyond extent of demise

A

Implied surrender

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22
Q

What is consent for alterations/use likely to be subject to

A

Reinstatement, reimbursing expenses, compensation for diminution, obtaining LA consents and carry out works to good standard w/ good materials

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23
Q

What is a long lease

A

Granted for premium w/ only nominal grant

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24
Q

When is a Licence for Use applicable

A

If change envisaged in the lease

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25
Q

What happens for alterations if there is also a mortgagee?

A

Must also consent

26
Q

What is a qualified covenant

A

T shall not do X w/o L’s consent

27
Q

If landlord consents to a change of use or alteration, what are the two methods of landlord giving his consent

A

Licence for Alteration/Use, or Deed of Variation

28
Q

What should be considered when giving consent for change of use, in terms of previous use

A

If additional to previous use

29
Q

What is the legal doctrine of waste

A

T can carry out any works that do not devalue the property

30
Q

When will a reversionary lease take effect

A

At end of current lease

31
Q

Three consequences of implied surrender

A

SDLT, LR and ‘54 Act

32
Q

What part of LTA applies to changes of use

A

19(3) LTA

33
Q

What happens if grace period expires for rent w/o payment

A

Charge interest from due date

34
Q

What will T want to ensure after Licence/Deed given for Change of Use/Alteration, in terms of rent

A

To be disregarded on rent review to avoid paying twice

35
Q

SDLT consequence of implied surrender

A

Pay again, as calculated on multiplier of length of term + annual rent

36
Q

What can consent under 19(2) still be conditional on

A

Reasonable sum for diminution, reinstatement, and L’s reasonable expenses in granting consent

37
Q

Two ways of giving consent to T for change of use/alteration

A

Licence for Alteration/Use or Deed of Variation

38
Q

Cheat for remembering Quarter Days

A

Units number is same as number of letters in month

39
Q

When can L charge payment for consent under 19(3)

A

If change of use involves structural alterations

40
Q

Three things to consider for LA consents + L title

A

PP needed, BR required, and check OCs for any restrictions

41
Q

Who can usually exercise break clause

A

Either or both

42
Q

What is an absolute covenant

A

T shall not do X

43
Q

What is the usual nature of a commercial lease term

A

Fixed

44
Q

When is a deed of variation more likely

A

If permanent and long-term - most likely for CoU

45
Q

Do the conditions of a fully qualified alteration covenant need to be reasonable?

A

Yes

46
Q

19(2) has what effect

A

Turns qualified covenant into fully qualified

47
Q

What is the usual grace period for paying rent

A

14/21 days

48
Q

What happens if lease does not expressly prohibit alteratons

A

T can carry out any works subject to legal doctrine of waste

49
Q

What is a likely expense for L if giving consent for alteration

A

Engaging surveyor to look over plans

50
Q

Handy structure for advice on alterations and use

A

Four Ls

51
Q

Who does an undertenant need to get consent from for alterations

A

Both immediate L (T) and T’s L

52
Q

LR consequence of implied surrender

A

Close existing leasehold reg + open new one

53
Q

Why will T negotiate ‘unreasonably withheld or delayed’

A

1 LTA does not apply, requiring reply within reasonable time

54
Q

What law applies to alterations and use

A

19(2) and (3) LTA

55
Q

What is it vital to check for consent to use/alteration, beyond landlord consent

A

Check OCs for RC/Lender, and check if PP/BR needed

56
Q

What is a market lease

A

Paying monthly/quarterly rent

57
Q

What is the normal condition for exercising break clause

A

T pays all rent

58
Q

When does 19(2) apply

A

If alteration = improvement

59
Q

What if the lease does not expressly prohibit change of use

A

T can use premises as he pleases

60
Q

What covenants are not subject to reasonableness

A

Absolute alteration covenants and any use covenants

61
Q

What CAN L charge under 19(3)

A

Reasonable sum for diminution and expenses

PLP (12 decks)

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