General Flashcards
Before starting a Rent Review / Lease Renewal, what information must you ensure you have?
- agreed ToE
- understand client strategy/ objective
- copy of all lease docs (lease, assignment, side letter, personal deeds etc)
- copy of previous RR memos
- contact details for T to arrange inspection & their agent
- review of asset’s prop management history
- review of rental evidence
How is the fee for a RR/ LR determined?
% of new rent agreed % of saving made from quoting rent Fixed fee Hourly rate (typical for 3rd party determination) Incentive fee
Wha must you ensure before agreeing a ToE?
Competence No COI (Independence)
Talk me through the process of a RR/ LR
- Undertake COI/ competency check
- Agree ToE
- Understand client’s strategy/ aim
- Review lease Docs & determine whether inside/ outside // time is of the essence
- Arrange inspection / measure
- Review comps & determine ERV
- Prepare rent recommendation report // HoTs
- Negotiate with T’s Agent, settle negotiations and document by way of RR memo // instruct sols to prepare new lease
What does “without prejudice” mean?
During the period of negotiations, where information is provided in an attempt to settle a dispute, if marked “without prejudice” it is privileged and cannot be used as evidence against the party that sent it, or brought to the courts attention I.e not to be relied upon
What does “save as to costs” mean?
The information marked save as to costs should only be brought to the attention of the courts in order to settle matters relating to legal costs
What does “without prejudice subject to contract” mean?
Statements provided in a genuine attempt to settle a dispute, cannot be brought to the attention of the courts and used as evidence against either party, and the offer is not binding until a contract is agreed.
What is a license?
- A personal right to enter a property
- Cannot be assigned
- Can be terminated by either party
- It acquires no legal interest in the land
What is a lease?
- Exclusive occupation
- Payment of rent
- Duration for a specified term
- If for more than 3 years, terms must be in writing, signed and registered as a deed
“A grant of land for a term at a rent with exclusive possession”
What are the differences between a lease and a license?
- LEGAL INTEREST
A lease provides the occupier with a legal interest in the land. A license is a permission to make it lawful for them to use the land - ASSIGNMENT
A lease can be assigned (depending on alienation clause). A license is a personal right that cannot be transferred. - TERMINATION
A lease cannot be terminated until break/ expiry. A license can usually be revoked at any time.
If exclusive possession is granted of a defined area, for over 6 months, is this a lease or a license?
Likely to be a lease
What does the case of Street v Mountford (1985) conclude?
If the agreement has all the characteristics of a tenancy (lease), then the agreement is a tenancy even if it is labelled as a license
What is a tenancy at will?
- form of licence
- written agreement for an unspecified time where LL can evict T at any time
- no legal interest in land
- no renewal right
When is a Tenancy at Will agreed?
Used for allowing T early entry for fit out works or while T is agreeing a new ex-Act lease after expiry
What is wayleave?
- temporary right
- annual payment
- personal and cannot be automatically transferred
- not compulsorily registrable
E.g. The right for an electricity company to install and retain their apparatus
What is an easement?
A permanent legal right to use someone else’s land
Often registered on Land Registry
Right of way easements are typically granted to utility companies to run power lines and cable lines, or granted to neighbouring owners.
What is a Prescriptive Easement?
A right of way obtained because of continuous and uninterrupted use being proven for over a period of at least 20 years
What is Adverse Possession?
The process whereby a person who is not the legal owner of the land can become the legal owner without the owner’s permission, through possession of the land for a specified period of time
In terms of adverse possession and the case of squatters, how long must they have occupied the property to gain a legal interest in the land?
(Registered/ unregistered land) 12 years of possession before Land Registration Act 2003 - successful claim
(After 2003) 10 years of occupation - successful claim
What is an Assignment?
Disposal of entire lease and proprietary rights to a new tenant.
What is Privity of Contract?
A contract cannot confer rights it impose obligations arising under it, on any person except those parties to it
What were the changes brought about by the Landlord and Tenant (Covenants) Act 1995, regarding Privity of Contract?
Pre LTA 1995, the original tenant remained liable to Landlord for tenants covenants (rent etc) throughout the term of the tenancy, despite any assignment.
Post LTA 1995, AGAs were introduced to defer the obligation of any tenant covenant onto the preceding tenant only
What is a sublease ?
The transfer of part of the interest in the property, to create a subsidiary lease.
This can apply to a physical part of the property, for a period of time, within the existing lease.
The head tenant retains their rights under the lease and their tenancy agreement with the Landlord. The sub tenant treats the head tenant as their landlord and the head tenant assumes liability over the sub tenant for any loss or damage
