L&T

Question 1

Difference between a lease & licence?

Answer 1

• Lease gives exclusive possession (for a term, at a rent, contract)
• Licence gives permission to do something otherwise illegal

Question 2

Section 30 - Grounds for LL opposing new lease?

Answer 2

7 Reasons:
1. Failed to carry out repairs
2. Persistently late in paying rent
3. Substantial breach of some other covenant
4. LL offers suitable alternate accommodation

3- No Fault Grounds;
1. Where tenancy was created by a sub-tenancy and building let as a whole would produce higher rent from separate lettings
2. Redevelopment
3. LL intends to occupy (must have been LL for 5 years)

Question 3

Section 30(d) Compensation for No Fault Grounds

Answer 3

< 14 years occupation 1 * ratable value
> 14 years 2 * ratable value

Question 4

What does L&T Act 1954 do?

Answer 4

It provides security of tenure for occupying business tenants

Question 5

What’s the difference between a Lease Renewal and a Rent Review?

Answer 5

• A lease renewal is a statutory procedure laid down by the L&T Act 1954
• A rent review is a contractual procedure contained within a lease

Question 6

How can a lease renewal be settled in the event of non-agreement?

Answer 6

• Matter is settled in court
• From July 97 unopposed lease renewal can be determined under the PACT

Question 7

What is PACT and what does it stand for?

Answer 7

• Professional Arbitration on Court Terms (PACT)
• Service provided jointly by the Law Society and the RICS

Question 8

What’s the GN that covers PACT?

Answer 8

Surveyors and Lawyers involved in tenancy renewals under PACT - 2nd Edition 2018

Question 9

How can a Rent Review be settled in the event of non-agreement?

Answer 9

• In accordance with the review clause which
• Usually to be determined by an Independent Expert or Arbitrator
• The matter can be referred to Court on a point of Law

Question 10

Section 23?

Answer 10

Tenancies to which the 54 Act Applies:
- Occupied for business purposes
- Business includes trade and professional employment

Question 11

Section 43?

Answer 11

Tenancies to which the 54 Act does not apply:
- Agricultural holdings
- Mining leases
- Residential tenancies
- Tenancies Granted as a Condition of Employment
- Tenancies not exceeding 6 months unless;
-T has been in occupation for > 12 months
- or there is a provision for an extension

Question 12

Other than the Tenant leaving on the last day of the lease term, what 4 other ways can a protected lease come to an end?

Answer 12

1. LL serves S.25 terminating lease
2. T serves s.26 requesting new lease
3. T serves s.27 terminating lease
4. L&T agree terms for new tenancy under s.28

Question 13

What are the consequences of failing to implement a rent review in accordance with the specified timetable in the lease?

Answer 13

Depends on the wording in the lease but:
- LL could miss a review
- T could be stuck with new rent proposed by LL

Question 14

Is time of the essence in in rent reviews?

Answer 14

Generally time is not of the essence in rent reviews

Question 15

What can an Arbitrator do?

Answer 15

• Only acts on evidence provided
• Awards lie between the extremes of the parties
• Must use expertise in assessing the quality of the evidence
• Cannot decide without receiving evidence
• Procedure regulated by Arbitration Act
• Cannot delegate duties
• Can determine the fees and costs
• Not liable for negligence

Question 16

What can an Expert Witness do?

Answer 16

• Has duty of investigation but may receive evidence from the parties
• Bases decision on knowledge and evidence
• No legislation governing procedure
• No powers through the courts
• Can seek assistance
• No power to make orders as to fees
• No right of appeal
• Liable for damages through negligence

Question 17

What’s a Calderbank?

Answer 17

An unconditional offer to settle on specified terms