Commercial Security of Tenure

Question 1

What is the effect of the LTA 1954?

Answer 1

Lease will NOT COME TO AN END unless by one of the statutory grounds in s30

Question 2

What are the 3 conditions of a Lease for LTA 1954 to apply?

Answer 2

(1) TENANCY
(2) OCCUPIED by Tenant
(3) BUSINESS Purposes

Question 3

What are the 3 main ways the LTA will NOT apply to a Tenancy?

Answer 3

(1) ‘Contracted Out’ LTA
(2) Fixed Term <6 months (exceptions)
(3) Tenancy ‘At Will’

Question 4

One way LTA will NOT apply to a Tenancy is if it has a ‘FIXED TERM OF < 6 months.

What are the 2 exceptions to this?

Answer 4

(1) Tenant in OCCUPATION > 12 months
(2) Lease contains provision RENEW / EXTEND > 6 months

Question 5

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
(b) ….. 14 or > days before GRANT NEW LEASE

Answer 5

(1) ‘Warning Notice’
(2)
(a) ‘Statutory Declaration’ (in front of Solicitor)
(b) ‘Ordinary Declaration’

Question 6

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.

Answer 6

(1) S25 Notice (L to T)
(2) S26 Notice (T to L)
(3) S27 Notice (T to L)

Question 7

What is a S25 Notice?

Answer 7

Notice from Landlord that the Tenancy will come to an end on the DATE SPECIFIED IN NOTICE (Date of Termination)

Question 8

(1) When must a S25 Notice be served?
(2) When must the Date Specified in the Notice (DOT) be?

Answer 8

(1) 6 - 12 months BEFORE Date specified in Notice (DOT)
(2) NOT BEFORE Contractual Expiry Date (CED) (of Lease)

Question 9

For a ‘Hostile’ S25 Notice, what are the 2 steps in the process:
(1) L serves T….
(2) EITHER L or T….

Answer 9

(1) L serves T s25 notice - lease ends on

Question 10

What are the 3 MANDATORY GROUNDS under s30 LTA?

Answer 10

(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)

Question 11

What are the 3 DISCRETIONARY GROUNDS under s30 LTA?

Answer 11

(1) REPAIR COVENANT - Breach ‘Repairing Covenant’
(2) RENT - PERSISTENT delays paying rent
(3) OTHER COVENANTS - SUBSTANTIAL breaches other covenants

Question 12

What 2 grounds under S30 LTA, are the Tenants entitled to Compensation?

Answer 12

(1) DEMOLITION / RECONSTRUCTION - L intends ‘Demolish / Reconstruct’ Property
(2) OCCUPATION - L intends ‘personally occupy premises’ (e.g. business / residential)

Question 13

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

Answer 13

(1) 2x Rateable Value
(2) 1 x Rateable Value

Question 14

(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’?

Answer 14

(1) L supports renewal of lease
(2) Set higher rent
(3) Negotiate terms of new lease

Question 15

What is a S26 Notice?

Answer 15

Request by Tenant for a NEW LEASE to start on DATE SPECIFIED IN NOTICE (Scheduled Commencement Date)

Question 16

(1) When must a T serve a S26 Notice?
(2) When must the Date Specified in the Notice (SCD of new lease) be?

Answer 16

(1) 6 - 12 months BEFORE DATE SPECIFIED IN NOTICE (Scheduled Commencement Date of NEW LEASE)

(2) NOT BEFORE Contractual Expiry Date (CED) (of Lease)

Question 17

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?

Answer 17

(1) ‘COUNTER-NOTICE’
(2) Within 2 months (receipt s26 Notice)

Question 18

In what situation would a T file a S27 Notice?

Answer 18

T wishes to stay on BEYOND Contractual Expiry Date (CED) but only for a BRIEF period

Question 19

When must a T serve a s26 Notice?

Answer 19

At least 3 months BEFORE Contractual Expiry Date (CED)

Question 20

How can a T end a PERIODIC TENANCY under LTA?

Answer 20

T serve ‘NOTICE TO QUIT’

Question 21

What should a T that wishes to leave a Lease subject to LTA on the CONTRACTUAL EXPIRY DATE (CED) need to do?

Answer 21

Nothing

Question 22

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

Answer 22

(1) Court
(2)
(a) 15 years
(b) Market rent