Commercial Security of Tenure Flashcards
What is the effect of the LTA 1954?
T has ‘SECURITY OF TENTURE’ and ∴ can remain in OCCUPATION past contractual end date of lease
What are the 3 conditions of a Lease for LTA 1954 to apply?
(1) TENANCY (i.e. fixed term / periodic)
(2) OCCUPIED by Tenant
(3) BUSINESS Purposes
What are the 3 main ways the LTA will NOT apply to a Tenancy?
(1) ‘Contracted Out’ LTA
(2) Fixed Term 6 months or less (exceptions)
(3) Tenancy ‘At Will’
One way LTA will NOT apply to a Tenancy is if it has a ‘FIXED TERM OF 6 months or less.
What are the 2 exceptions to this?
(1) Tenant in OCCUPATION > 12 months
(2) Lease contains provision RENEW / EXTEND > 6 months
One way LTA will NOT apply to a Tenancy is if it is ‘CONTRACTED OUT’. What are the 2 steps:
(1) L serves T a …..
(2) T gives L a
(a) ….. < 14 days before GRANT NEW LEASE (i.e. executed)
(b) ….. 14 or > days before GRANT NEW LEASE
(1) ‘Warning Notice’
(2)
(a) ‘Statutory Declaration’ (in front of Solicitor)
(b) ‘Ordinary Declaration’
What are the 3 ways a Lease subject to LTA can be brought to an end? Specify if the notice is given from L to T or T to L.
(1) S25 Notice (L to T)
(2) S26 Notice (T to L)
(3) S27 Notice (T to L)
What is a S25 Notice?
Notice from Landlord that the Tenancy will:
(1) Come to an end on the DATE SPECIFIED IN NOTICE (Date of Termination)
(2) L oppose grant new lease (s30 grounds) (‘HOSTILE’) or welcome grant of a new lease on new terms of the lease (‘FRIENDLY’)
(1) When must a S25 Notice be served?
(2) When must the Date Specified in the Notice (DOT) be?
(1) 6 - 12 months BEFORE Date specified in Notice (DOT)
(2) NOT BEFORE Contractual Expiry Date (CED) (of Lease)
For a ‘Hostile’ S25 Notice, what are the 2 steps in the process:
(1) L serves T….
(2) T applies to court for ….
(1) L serves T s25 notice - lease ends on date specified in notice (DOT)
(2) T applies court - for new Tenancy
What are the 3 MANDATORY GROUNDS under s30 LTA?
(1) ACCOMMODATION - L offered ‘Suitable Alternative Accommodation’
(2) DEMOLITION / RECONSTRUCTION - L intends ‘Demolish / Reconstruct’ Property
(3) OCCUPATION - L intends ‘personally occupy premises’ (e.g. business / residential)
What are the 3 DISCRETIONARY GROUNDS under s30 LTA?
(1) REPAIR COVENANT - Breach ‘Repairing Covenant’
(2) RENT - PERSISTENT delays paying rent
(3) OTHER COVENANTS - SUBSTANTIAL breaches other covenants
What 2 grounds under S30 LTA, are the Tenants entitled to Compensation?
(1) DEMOLITION / RECONSTRUCTION - L intends ‘Demolish / Reconstruct’ Property
(2) OCCUPATION - L intends ‘personally occupy premises’ (e.g. business / residential)
Under the 2 grounds of S30 LTA the Tenant’s are entitled to COMPENSATION, what will this compensation be for T in:
(1) Occupation 14y or >
(2) Occupation < 14y
(1) 2x Rateable Value
(2) 1 x Rateable Value
(1) What is a ‘Friendly’ s25 Notice?
(2) When is it typically used?
(2) What should L and T do in the case of a ‘Friendly S25 Notice’?
(1) L supports renewal of lease
(2) Set higher rent
(3) Negotiate terms of new lease
What is a S26 Notice?
Request by Tenant for a NEW LEASE to start on DATE SPECIFIED IN NOTICE (Scheduled Commencement Date)
(1) When must a T serve a S26 Notice?
(2) When must the Date Specified in the Notice (SCD of new lease) be?
(1) 6 - 12 months BEFORE DATE SPECIFIED IN NOTICE (Scheduled Commencement Date of NEW LEASE)
(2) NOT BEFORE Contractual Expiry Date (CED) (of Lease)
If a L opposes the grant of a New Lease after a T serves a S26 Notice:
(1) What can they file?
(2) In what time frame?
(1) ‘COUNTER-NOTICE’
(2) Within 2 months (receipt s26 Notice)
In what situation would a T file a S27 Notice?
T wishes to remain in Occupation BEYOND Contractual Expiry Date (CED) but only for a BRIEF period
When must a T serve a s27 Notice?
At least 3 months BEFORE Contractual Expiry Date (CED)
How can a T end a PERIODIC TENANCY under LTA?
T serve ‘NOTICE TO QUIT’
What should a T that wishes to leave a Lease subject to LTA on the CONTRACTUAL EXPIRY DATE (CED) need to do?
Nothing
If the court grants a new lease under LTA and the Parties FAIL agree TERMS between them:
(1) Who will decide the TERMS of the new Lease?
(2) What will be:
(a) Maximum length of new lease
(b) Rent
(1) Court
(2)
(a) 15 years
(b) Market rent
