Grant of Lease Procedure Flashcards
What stage is skipped if no agreement for lease is used in a lease grant?
A. Pre-completion searches
B. SDLT filing
C. Drafting heads of terms
D. Exchange of contracts
D – Exchange of contracts
Explanation: Without an agreement for lease, there is no formal exchange. The parties simply proceed straight to completion.
How is completion of a lease typically agreed between solicitors?
A. By submitting SDLT
B. By exchanging engrossed copies
C. By registering title at the Land Registry
D. By agreeing over the telephone and dating the lease
D – By agreeing over the telephone and dating the lease
Explanation: Completion is confirmed via a phone call between solicitors, agreeing to date and complete the lease.
A tenant is paying £80,000 rent per year and is completing a lease partway through the quarter. How is the daily rent calculated?
A. Dividing by 90 days
B. Assuming 30 days per month
C. Dividing the annual rent by 365 (or 366 in a leap year)
D. Estimating quarterly figures manually
C – Dividing the annual rent by 365 (or 366 in a leap year)
Explanation: To apportion rent correctly, daily rent is calculated by dividing the annual rent by 365 (or 366).
After completion, which registration requirement applies for a lease granted for more than 7 years?
A. Consent from the mortgagee
B. Issuance of a break clause certificate
C. Filing a deed of covenant
D. Registration of the lease at HM Land Registry
D – Registration of the lease at HM Land Registry
Explanation: Leases longer than 7 years must be registered to be valid against third parties.
A tenant’s solicitor orders searches for a lease of part of a title (e.g. a unit in a shopping centre). Which search is appropriate?
A. OS1
B. OS3
C. OS2
D. Local land charges
C – OS2
Explanation: OS2 is used where a lease relates to part of a registered title, like a single shop unit within a larger building.
A landlord’s solicitor needs to prepare the lease for completion. What must they send to the tenant’s solicitor?
A. Land Registry extract
B. VAT invoice
C. Completion statement showing apportioned rents and charges
D. Environmental search
C – Completion statement showing apportioned rents and charges
Explanation: Before completion, the tenant needs to know how much is payable — the completion statement includes apportioned rent, service charges, etc.
A solicitor suggests limited title investigations because the lease is only for one year and low risk. Why might this approach be acceptable?
A. Title investigations are not necessary for leases
B. The tenant can accept risks if properly advised
C. Landlords are responsible for all legal compliance
D. Short leases automatically exclude title warranties
B – The tenant can accept risks if properly advised
Explanation: For very short leases, full investigation might not be cost-effective. The tenant can waive it after proper advice.
Which form is specifically used for pre-contract enquiries when taking a commercial lease?
A. CPSE1
B. CPSE4
C. CPSE3
D. TA6
B – CPSE3
Explanation: CPSE3 is a commercial property standard enquiry form specific to leasehold transactions (as opposed to CPSE1 for purchases).
If a tenant signs a counterpart lease without an agreement for lease, what happens next?
A. The lease automatically registers
B. Completion can proceed immediately once funds are available
C. Title must first be transferred
D. A pre-completion deposit is mandatory
B – Completion can proceed immediately once funds are available
Explanation: Once documents are signed and funds are available, solicitors can complete without needing prior exchange.
What is a counterpart lease?
A. A guarantee
B. A document signed by the landlord
C. A title deed
D. A copy of the lease signed by the tenant
A – A copy of the lease signed by the tenant
Explanation: The original lease is signed by the landlord, the counterpart is signed by the tenant.
What does the solicitor do when calculating rent apportionment before completion?
A. Estimate a rough figure
B. Use the agreed daily rent calculation
C. Wait until the next rental quarter
D. Defer it to the landlord’s accountant
A – Use the agreed daily rent calculation
Explanation: Solicitors must apportion rent accurately based on daily amounts.
Why might an agreement for lease be needed instead of completing the lease immediately?
A. To delay SDLT payments
B. Because the premises are not yet ready or conditions need to be satisfied
C. To negotiate service charges separately
D. Because leases always require 6 months’ notice
A – Because the premises are not yet ready or conditions need to be satisfied
Explanation: Agreements for lease are common when there are conditions like pending construction or regulatory approvals.
