General

Question 1

Before starting a Rent Review / Lease Renewal, what information must you ensure you have?

Answer 1

• 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

Question 2

How is the fee for a RR/ LR determined?

Answer 2

% of new rent agreed
% of saving made from quoting rent 
Fixed fee 
Hourly rate (typical for 3rd party determination)
Incentive fee

Question 3

Wha must you ensure before agreeing a ToE?

Answer 3

Competence
No COI (Independence)

Question 4

Talk me through the process of a RR/ LR

Answer 4

1. Undertake COI/ competency check
2. Agree ToE
3. Understand client’s strategy/ aim
4. Review lease Docs & determine whether inside/ outside // time is of the essence
5. Arrange inspection / measure
6. Review comps & determine ERV
7. Prepare rent recommendation report // HoTs
8. Negotiate with T’s Agent, settle negotiations and document by way of RR memo // instruct sols to prepare new lease

Question 5

What does “without prejudice” mean?

Answer 5

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

Question 6

What does “save as to costs” mean?

Answer 6

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

Question 7

What does “without prejudice subject to contract” mean?

Answer 7

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.

Question 8

What is a license?

Answer 8

1. A personal right to enter a property
2. Cannot be assigned
3. Can be terminated by either party
4. It acquires no legal interest in the land

Question 9

What is a lease?

Answer 9

1. Exclusive occupation
2. Payment of rent
3. Duration for a specified term
4. 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”

Question 10

What are the differences between a lease and a license?

Answer 10

1. 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
2. ASSIGNMENT
   A lease can be assigned (depending on alienation clause). A license is a personal right that cannot be transferred.
3. TERMINATION
   A lease cannot be terminated until break/ expiry. A license can usually be revoked at any time.

Question 11

If exclusive possession is granted of a defined area, for over 6 months, is this a lease or a license?

Answer 11

Likely to be a lease

Question 12

What does the case of Street v Mountford (1985) conclude?

Answer 12

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

Question 13

What is a tenancy at will?

Answer 13

• 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

Question 14

When is a Tenancy at Will agreed?

Answer 14

Used for allowing T early entry for fit out works or while T is agreeing a new ex-Act lease after expiry

Question 15

What is wayleave?

Answer 15

• 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

Question 16

What is an easement?

Answer 16

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.

Question 17

What is a Prescriptive Easement?

Answer 17

A right of way obtained because of continuous and uninterrupted use being proven for over a period of at least 20 years

Question 18

What is Adverse Possession?

Answer 18

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

Question 19

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?

Answer 19

(Registered/ unregistered land) 12 years of possession before Land Registration Act 2003 - successful claim

(After 2003) 10 years of occupation - successful claim

Question 20

What is an Assignment?

Answer 20

Disposal of entire lease and proprietary rights to a new tenant.

Question 21

What is Privity of Contract?

Answer 21

A contract cannot confer rights it impose obligations arising under it, on any person except those parties to it

Question 22

What were the changes brought about by the Landlord and Tenant (Covenants) Act 1995, regarding Privity of Contract?

Answer 22

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

Question 23

What is a sublease ?

Answer 23

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