Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Property Practice > Business Tenancies > Flashcards

Business Tenancies Flashcards

1
Q

What is the main distinction between section 25 and section 26 notice?

A

The court application date differs: section 25 is the day of the statutory termination date, while section 26 is the day before the proposed commencement date.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What does the Landlord and Tenant Act 1954 provide for qualifying business tenants?

A

It provides security of tenure, allowing tenants to continue occupying premises at the end of the contractual term.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the benefits of security of tenure for the tenant?

A

Tenants can invest in premises, benefit from goodwill, and avoid upheaval from moving at the end of the term.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the benefits of security of tenure for the landlord?

A

It makes premises more appealing, encourages tenants to care for the property, and may lead to higher market rent at review.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is required for security of tenure to apply?

A

There must be a tenancy occupied by the tenant for the purposes of a business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What types of tenancies benefit from security of tenure?

A

Fixed term and periodic tenancies can benefit from security of tenure.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What types of arrangements do not benefit from security of tenure?

A

Licences and tenancies at will do not benefit from security of tenure.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What happens if a tenant leaves the premises vacant?

A

They are not entitled to claim security of tenure.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are examples of business purposes under the Landlord and Tenant Act 1954?

A

Charity shops and tennis clubs for members only are considered business purposes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What types of tenancies are excluded from security of tenure?

A

Agricultural tenancies, mining leases, service tenancies, and fixed term tenancies of six months or less are excluded.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is ‘contracting out’ in the context of security of tenure?

A

It allows parties to agree to exclude a fixed term lease from security of tenure provisions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the procedure for contracting out?

A

A warning notice must be served, and a declaration must be provided by the tenant before completing the lease.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the implications of security of tenure for a non-protected tenancy?

A

The tenant has no right to occupy beyond the contractual term and may be treated as a trespasser if they stay.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What rights does a tenant of a protected tenancy have?

A

They are entitled to remain in occupation (hold over) at the end of the contractual term.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a section 25 notice?

A

It states when the current tenancy will end and must be served 6 to 12 months before termination.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a friendly section 25 notice?

A

It indicates the landlord’s willingness to renew the lease and proposes rent and terms for the new tenancy.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the grounds for a hostile section 25 notice?

A

Grounds include tenant breaches, landlord’s intention to occupy, or offering alternative accommodation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is the difference between mandatory and discretionary grounds for opposing renewal?

A

Mandatory grounds require the court to grant possession, while discretionary grounds depend on the court’s decision.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

How is compensation calculated if the landlord needs possession for no fault of the tenant?

A

Compensation is calculated at 1x the rateable value for less than 14 years, and 2x for 14 years or more.

20
Q

What is required for a current tenant to carry on a previous tenant’s business?

A

The current tenant must take over the same business, which likely requires a transfer of goodwill.

21
Q

When can a protected lease contract out of paying compensation?

A

It is only possible if the tenant has been in occupation for less than five years.

22
Q

What is rateable value?

A

Rateable value is based on the estimated annual rental value of premises and is fixed by the local authority for calculating business rates due for the premises.

23
Q

What is required for Ground (a) – breach of tenant repairing obligation?

A

Evidence of a serious breach is required. It is discretionary and not compensatory.

24
Q

What is required for Ground (b) – persistent delay in paying rent?

A

Evidence of the length of delay and number of failures to pay rent on time is required. It is discretionary and not compensatory.

25
Q

What is required for Ground (c) – other substantial breaches of tenant obligations?

A

Evidence of serious and persistent breaches is required. It is discretionary and not compensatory.

26
Q

What is required for Ground (d) – availability of suitable alternative accommodation?

A

The landlord must have made an offer of alternative accommodation suitable to the tenant. It is mandatory and not compensatory.

27
Q

What is required for Ground (f) – intention to demolish or reconstruct premises?

A

A firm and settled intention to redevelop is required, possibly with planning permission or a construction contract. It is mandatory and compensatory.

28
Q

What is required for Ground (g) – landlord intends to occupy premises?

A

A firm and settled intention by the landlord is required, who must have owned the reversion for at least 5 years before the termination date. It is mandatory and compensatory.

29
Q

What is the minimum and maximum notice period for a section 25 notice?

A

The notice must specify a date of termination no earlier than the end of the contractual term, and no less than six months and no more than 12 months from the date of the notice.

30
Q

What are the two types of section 25 notices?

A

A section 25 notice may be friendly (not opposing renewal) or hostile (opposing renewal).

31
Q

What happens if the landlord seeks to recover possession?

A

The landlord may only do so on statutory grounds.

32
Q

What is a surrender in lease terms?

A

A surrender is when the tenant gives up its leasehold interest to the landlord, bringing it to an end.

33
Q

Why might a tenant serve a section 26 notice?

A

A tenant may want the certainty of a fixed term or to avoid being stuck on a higher than market rent while holding over.

34
Q

What is the minimum notice period for a section 26 notice?

A

The minimum notice period is 6 months, and the maximum is 12 months before the proposed commencement date of the renewal lease.

35
Q

What is required for a section 27 notice?

A

A section 27 notice must give three months of the intended termination date, which must be no earlier than the date on which the contractual term ends.

36
Q

What is the procedure following a section 25 or section 26 notice?

A

Either party may apply to the court for a renewal lease or to recover possession after the notice is served.

37
Q

What is interim rent?

A

Interim rent is payable during the period of holding over and negotiation, based on the open market rent.

38
Q

What happens if a tenant is not happy with the court’s terms?

A

The tenant has 14 days to ask the court to revoke the court order.

39
Q

What is the effect of a court order for the grant of a new lease?

A

The new lease will start the day after the termination of the existing lease.

40
Q

What is the difference between a friendly and hostile section 25 notice?

A

A friendly notice proposes renewal, while a hostile notice opposes it on statutory grounds.

41
Q

What is the competent landlord?

A

The competent landlord is the first in the chain of landlords who owns a reversionary interest that will not end in 14 months.

42
Q

Who must serve a section 26 notice?

A

It must be served on the tenant’s landlord, not the tenant.

43
Q

Who is entitled to serve a section 25 notice on the undertenant?

A

The tenant’s landlord, not the tenant.

44
Q

How are notice periods expressed?

A

Notice periods expressed in numbers of months run from the calendar date of service to the same calendar date in the appropriate month.

45
Q

What happens if notice is served at the end of a month?

A

If the notice expires in a shorter month, the last day of the month is used.

46
Q

What must be taken into account when calculating termination or commencement dates for section 25 or 26 notices?

A

Both the end of the existing contractual term and the notice periods must be taken into account.

47
Q

Who must conduct section 25 and 26 notice procedures?

A

The procedures must be conducted between the tenant and the competent landlord, who may not necessarily be the immediate landlord.

Property Practice (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions