L1 Landlord and Tenant & LEASING & LETTING Flashcards
As the rest of this section relates to ASTs, may be worth preparing to provide an overview of your understanding of the 1985 Act and how it is relevant to your role.
Sets out rights and responsibilities of both landlord AND tenant
LTA 1985 is relevant to ASTs where:
S11: LL has obligation to keep structure and exterior in repair, for supply of water, electricity, gas, heating etc.
LL has right to conduct checks for ‘CONDITION OF STATE AND REPAIR’
MEES - what does it stand for and what is its relevance with Landlord and Tenants?
Minimum Energy Efficiency Standards
April 2020 - obligations on LL not to let units which have an EPC below rating E = substandard property
Legal obligation for LL to have an EPC
If UK are to hit net zero carbon targets
What are the MEES exemptions?
High cost exemptions 7-year payback exemptions All improvements made exemptions Wall insulation exemptions Consent exemptions Devaluation exemptions New landlord exemptions
What are the THREE main differences between a lease and a licence?
- Lease provides occupier with an estate in the relevant land - licence = permission to make it lawful for them to use land
- Lease can be assigned - licence is normally a personal right that cannot be assigned
- Lease cannot be terminated until expiry (unless break clause). Licence can be revoked @ any time (DON’T HAVE SAME PROTECTION AS LEASE)
What case law covers the difference between a lease and license?
Street v Mountford (1985) - sets out difference between lease and licence
a tenancy or lease exists only if exclusive possession is granted of ‘a dwelling’.
What is meant by ‘Prescribed Information’?
Tenancy Deposit Protection legislation under the Housing Act 2004 - tenants must check info
Prescribed Information = specific set of info relating to a tenancy, which LLs = legally obliged to provide
Must serve PI within 30 days of agent/landlord receiving deposit
LTA 1985 - does this relate to long lease tenancies (over 10 years)?
Applies to all short leases (<7 years) AND
periodic tenancies
i.e. ASTs
What are the legal requirements to letting out a property?
keep rented property safe and free from health hazards
ensure all gas and electrical equipment is safely installed and maintained
provide an EPC
protect deposit in a government-approved scheme
right to rent checks
provide How to rent guide and checklist
What are the validity periods for gas safety certificates and electrical safety certificates?
GSC - gas safety check EVERY 12 MONTHS
ESC - VALID FOR 5 YEARS
What is the difference between a lease and an agreement?
lease is anything between 12 months and 7 years
‘rent’ agreement = shorter term - around 1 month and can be agreed on a month to month basis
TENANCY = AST = technically same as a lease
What is the form and structure of an AST?
Terms on first page Definitions T&Cs: - Tenant's obligations - Landlord's obligations - Rent Increases - Interest (on arrears and other monies) - Termination - Inventory - Deposit - Notices - Consents - Data Protection - Signatures
What other Acts are relevant with ASTs (OTHER THAN LTA 1985)?
LTA 1987
Housing Act 1988
Arbitration Act 1996
Equality Act 2010
Occupier’s Liability Act 1984
Protection from Eviction Act 1977
Tenant Fees Act 2019
Land Registration Act 2002
What is the relevance of this with ASTs? -LTA 1987
SECTION 48
Notices / proceedings must be served upon LL at their address
What is the relevance of this with ASTs? - Housing Act 1988
PART 1 (As amended by HA 1996)
S21 Notices = 2 month’s minimum
Tenancy to continue as periodic tenancy
SCHEDULE 2: Grounds for possession (amended 2022)
What is the relevance of this with ASTs? - Arbitration Act 1996
In case disputes arise (particularly wrt fires)
What is the relevance of this with ASTs? - Equality Act 2010
Any requests for adaptations auxiliary aids or services
What is the relevance of this with ASTs? - Occupier’s Liability Act 1984
Tenant = responsible for safety of guests and visitors who attend property and protect them from hazards
What is the relevance of this with ASTs? - Protection from Eviction Act 1977
SCHEDULE 2: AST does not effect tenant’s rights under this Act
What is the relevance of this with ASTs? -
Tenant Fees Act 2019
Deposit amounts
£50 fee
What is the relevance of the Energy Act 2011?
Energy efficiency improvements to PRS
MEES
What is the relevance of the Fire Safety Act 2021?
Multi-occupied residential buildings
Responsible person to oversee safety of external facade, communal areas and structure
What is included in the ‘Prescribed Information’?
(THINK TDI FORM)
Amount of the deposit
Address of the property
Name, address and contact details of administrator of tenancy deposit scheme (MYDEPOSITS) with which the deposit is held
Forwarding address of tenant (to be placed on DPC)
Name, address and contact details of LL, and tenants and any 3rd parties who have contributed to deposit
What are the safety standards LL must meet when renting out properties?
a smoke alarm must be installed on each floor of the property.
carbon monoxide detectors must be placed in rooms with a coal fire or wood burning stove.
a gas safety certificate for each gas appliance must be available inside the property.
to reduce risk of fire, all furniture must meet safety standards and display the appropriate labels.
any electrical devices must be safe for use, and we recommend an Installation Survey or Portable Appliance Testing (PAT) so you can be sure you are compliant.
the water supply must be working properly to protect tenants form Legionella.
What is the Land Registration Act 2002? (CHECK GUIDE)
Framework for electronic property conveyancing
Allows formal documents to be executed electronically
Freeholds / leases granted >7years must be registered with LR
Must be registered with compliant lease plan
What guidance might you refer to?
How to Rent Guide
NLA
THE PROPERTY OMBUDSMAN’S Code of Practice for Residential Letting Agents (England)
HSE
LTA 1985 - what is the purpose of the Act?
Before act introduced there were no AST agreement, only regulated tenancies. Regulated tenancies had “fair” rents = often “50%” of MV and left landlords without a profit or enough funds to carry out any repairs required to the property.
Act was introduced to improve living standards for both parties.
It introduced tenancy agreements which ran for seven years or less.
LTA 1985 - what does the Act cover?
Right to know your Landlord (S1-3A)
Tenants must deal with minor repairs
Service charges (S18-30) deals with residential service charges and limit unreasonable charges, and S19 any such charges must be strictly related to cost. S20 =Leaseholders to be consulted before maintenance and improvement costs can be recovered from leaseholders and assured tenants.
Insurance (30A) tenants rights to summaries of any insurance policy contained in a SC
Right to quiet enjoyment for tenants
Maintaining a safe living standard (S8-10) and S10 state of ‘repair, stability, natural lighting, ventilation’
Landlords must deal with major repairs (S11-17) and S11 specified repair obligations to ‘the structure and exterior…’ ‘installations for water, gas and electricity…’
Reporting a repair
What is a Lease?
A binding contract in law that sets out terms and conditions of tenancy between parties and defines their rights and obligations
What is a Licence?
Unlike a lease, a licence does not grant the tenant ‘exclusive possession’ of the property. A licence is merely a right to occupy.
What is a residential license?
Not easy to grant. A true lodger / paying guest has no space of their own, cannot prevent property owner from entering and = licensee
However, if occupier has their own space and a key to the room, courts will almost always imply the occupier has exclusive possession and = tenant.
What is a letting?
Usually a short-term lease (but is sometimes used for a lease of any length)