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Property Practice > Alienation > Flashcards

Alienation Flashcards

1
Q

What is alienation?

A

Disposal of all or part of tenant’s interest in lease

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2
Q

If a lease is silent on assignments/underletting can the tenant do so?

A

Yes

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3
Q

What is an absolute covenant against assignment?

A

Not allowed

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4
Q

What is a qualified covenant against assignment?

A

Allowed with landlord’s permission

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5
Q

What is the effect of s19(1)(a) LTA 1927 on qualified covenants against assignments and underletting?

A

converts into fully qualified (must not unreasonably withhold consent)

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6
Q

When and how must a landlord make a decision on consent to assign/underlet?

A

Within reasonable time and burden on L to prove reasonable refusal with written reasons

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7
Q

When may a landlord be able to reasonably withhold consent for assignment?

A
  • Must relate to landlord/tenant relationship
  • Tenant mix policy (eg proposed use)
  • Inability to pay rent
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8
Q

What can happen if the landlord unreasonably withholds consent to assign or delays in making decision?

A

tenant can claim damages

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9
Q

If a lease is silent on providing an AGA as a condition of a assignment, can a landlord request one anyway?

A

Only if reasonable to do so

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10
Q

Who will draft a licence to assign?

A

Landlord solicitor

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11
Q

Who will draft a contract for assignment?

A

Tenant solicitor

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12
Q

Who will deduce title for an assignment?

A

Tenant solicitor

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13
Q

Who will apply for consent to assign and from whom?

A

Tenant solicitor applies, Landlord solicitor confirms receipt

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14
Q

What will the landlord’s solicitor ask from the tenant’s solicitor in terms of the application for consent to assign?

A

Undertaking for costs

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15
Q

How will the tenant’s solicitor dedice title for assignment?

A
  • official copies of leasehold title or if unregistered - landlord title
  • copy lease
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16
Q

What enquiries will the assignees solicitor raise?

A

CPSE1 and CPSE4

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17
Q

Who will draft the Deed of assignment?

A

Assignee solicitor

18
Q

Who will prepare and pay the completion statement?

A
  • Tenant solicitor prepare
  • assignee pays
19
Q

What pre completion search is raised for an assignment?

A

OS1 for leasehold title

20
Q

What form is the deed of assignment in for registered leasehold?

A

TR1

21
Q

Which document will the landlord be involved in completing/not be involved?

A
  • completes license to assign
  • not involved in deed of assignment
22
Q

What are the post completion steps for the assignees solicitor?

A
  • Submit SDLT/LTT return and pay
  • Register assignment (if over 7 years)
  • Send formal notice of assignment to Landlord’s solicitor
23
Q

Does the original tenant still owe the original landlord rent/obligations if it underlets?

A

Yes

24
Q

Does a qualified covenant for underletting convert to a fully qualified covenant within reasonable time?

A

Yes

25
Q

How will a lease typically prevent a tenant from underletting premises?

A

o Together with property not belonging to landlord
o On payment of lump sum
o With rent free period beyond what is normal in that market

26
Q

What will leases typically require for underletting?

A

o Is at rent no lower than T’s lease
o Contains covenants no less onerous than T’s lease

27
Q

Does privity of contract exist between a landlord and an undertenant?

A

No

28
Q

Does privity of estate exist between a landlord and an undertenant?

A

No

29
Q

How can an undertenant directly covenant with the landlord?

A

In license to underlet

30
Q

Will an AGA be relevant for underletting?

A

No

31
Q

Who will draft the underlease?

A

Tenant solicitor

32
Q

Who will draft the agreement to underlease?

A

Tenant solicitor

33
Q

Who will draft the licence to underlet?

A

Landlord solicitor

34
Q

Will the landlord’s solicitor be involved in completing the lease/agreement for underlease?

A

No

35
Q

What will the landlord’s solicitor ask from the tenant’s solicitor in terms of the application for consent to underlet?

A

Undertaking for costs

36
Q

For deducing the title when underletting, what should the tenant’s solicitor provide to the undertenant’s solicitor?

A
  • Over 7 years – only provide official copy leasehold title
  • 7 years or less – official copy Landlord freehold title and copy of the lease
37
Q

What are the pre-completion searches for underletting?

A

OS1 underletting of whole or OS2 underletting of part
If not registered – OS3 against T’s interest

38
Q

What precompletion search is used where the underlease being taken on is not registrable?

A

OS3

39
Q

What is the notice of dealing requirement under licences to assign/underlet?

A

Assignee (assignment) or Tenant (underlet) required to give formal notice within a month that transaction has completed

40
Q

What are other forms of alienation?

A
  • tenant creating charge over lease
  • tenant sharing occupation
41
Q

Which document will contain an undertenants direct covenants with the superior landlord?

A

Licence to underlet

42
Q

What are the post completion steps for underletting?

A
  • SDLT/LTT return and pay
  • Register underlease if over 7 years

Property Practice (11 decks)

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