L&T 2 Flashcards
What is the difference between a lease and a licence?
- Lease give a tenant exclusive rights of possession,
which excludes 3rd parties such as a landlord
rent is normally is usually made in return for possession. - Licence gives permission to do something on someone’s land/property that would otherwise be deemed as trespass
What is the leading case in the matter of “lease or licence”?
Street v Mountfort 1985
Case determined the difference between a lease and a licence as the parties intention is a contributing factor for exclusive possession.
In what circumstances have you granted (or would consider granting) a licence?
- Erecting of an advertising board
- Car parking space
- use of a bin store
- To hire out an event hall
- Free standing kiosk in a shopping centre
- Burger vans
- Ice-creams vans
- Market stalls
You are managing a property that is going to be redeveloped at some unknown date in the future. What letting options do you have to generate some rental income without giving the tenant security of tenure under the 1954 Act?
- Grant Leases of less than 6 months (section 43)
- if over 6 months agree to contract out of section 24-28 of 1954 act. (section 38). Advise client rolling break.
A Tenant has entered into a full repairing and insuring lease of a property in disrepair. The landlord now requires the tenant to remedy this repair. What advise would you give to this tenant?
- Check the wording of the repair covenant of the lease
- Confirm to the tenant they are responsible.
- The standard of repair would depend on the age and surrounding areas.
What advise would you give to a tenant wanting to take a FRI lease of a property in disrepair but suiting his business
- The tenant could look to seek a rent incentive to undertake the works
- Ask the landlord to put in repair prior to occupation
- Limit repairs by schedule of condition
What action can a landlord take when a tenant is in breach of repairing covenant?
Serve a section 146 notice law and property act 1925. Notifying tenant of:
- breach
- requesting T to remedy the breach
- landlord could go in and complete the repairs themselves, and claim for damages. Javis v Harris
What action can a tenant take when a landlord is in breach of repairing covenant?
- Go to court getting an injunction for LL to complete the works.
- If LL does not respond to notice/court complete works themselves and claim a set-off against the rent.
What does the Jervis v Harris case mean to you?
When the landlord exercised the right to re-enter the property and do works and claim it as a debt.
Avoids damages under S18 of the L&T act 1927.
How are damages assessed when a tenant is in breach of repairing covenant?
Amount to the diminution in value to the Landlord’s reversion caused by the Tenant’s breach. Damages are limited by S18 of the 1927 act.
How are damages assessed when a landlord is in breach of repairing covenant?
Difference in value between the premises in their condition at the time of assessment and the value if the LL had undertaken the repairs when on receipt of the notice.
Explain the provisions of S18(1) of the L&T act 1927
Damages limited to the extent in value caused by T breach
Jones v Hexheimer (1950)
- T left room in residential house in poor cstate
- L obtained aware of £36 redecorate
Explain difference between a schedule of condition and a schedule of Dilaps
SoC = statement describing the physical state of the building
SoD = Record of alleged breaches of repairing covenant undertaken by a landlord surveyor
Explain the difference between an Interim and Terminal schedule of dilaps
Interim schedule – can be served within more than 3 years left of the term
Terminal schedule – served at the end of the term or last 3 years of the term
You have 56 days after lease expiry to serve a dilaps schedule
What is a Scott schedule?
It is a schedule showing the items of disrepair and the cost to put in repair in the recommended form that a schedule of conditions should to be presented to court.