Landlord and Tenant 1 Flashcards

1
Q

What are the 4 requirements for a lease?

A

Exclusive possession
Rent payable
For a term certain
Longer than 6 months

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2
Q

What case law deals with the 4 requirements for a lease?

A

Street v Mountford
- exclusive right to occupy a furnished room for a rent - constituted a tenancy

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3
Q

What are the security of tenure provisions – what does it give tenants?

A

Right to remain in the property at the end of the term / right to renew

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4
Q

Are leases contracted in or out of the act at the time of drafting?

A

Leases are contracted inside the act unless stated otherwise

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5
Q

How do you then contract out?

A

Simple / Statutory declaration

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6
Q

What is the difference between a statutory declaration and a simple declaration

A

Statutory has to be notarized by a solicitor and is served within 14 days
Simple served over 14 days

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7
Q

What does subject to contract mean

A

It is not binding and the agreement is subject to being engrossed in contract

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8
Q

What does without prejudice mean?

A

It cannot be used as evidence in court

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9
Q

What’s the first thing to do to instigate the rent review no behalf of the landlord

A

Check competency, conflicts, ToE
Then check lease, review rent review clause. Mechanisms, Asusmptions and disregards. Time is of the essence, how to serve notice

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10
Q

What is time of the essence

A

Time is material to the provision / clause of the contract

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11
Q

How do you know if time is of the essence?

A

United Scientific Holdings vs Burnley borough Council
It is expressly stated in the lease

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12
Q

Give me one of the standard assumptions in a rent review clause

A

Vacant possession
Property is immediately available
Tenant complied with all lease covenants
Hypothetical term – tell you exactly what the term is
Willing landlord and willing tenant

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13
Q

What are the implications of a long hypothetical term – longer than standard market practice

A

Lower rent

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14
Q

What are the disregards in a RR

A

Tenant improvements
Tennant occupation
Goodwill
Licences for the sale of liquor

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15
Q

Are all tenants improvements likely to be disregarded?

A

No, rentable if:
If undertaken over 21 years ago
If undertaken as a condition of the lease
Unlawful – without seeking permission

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16
Q

Tell me about the dispute resolution options available in a rent review

A

Arbitration
Independent Expert

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17
Q

How would you know if its an Arbitrator or independent expert?

A

It will be stated in the Rent Review clause

18
Q

What are the main differences between the Arbitrator and Independent expert?

A

Arbitrator is governed by Arbitration Act 1996 and cannot act on their own expertise, they must rely on evidence provided.
Arbitrator cannot delegate duties and can award costs
Arbitrator cannot be sued except on a point of law

19
Q

What is the independent expert governed by if the arbitrator is governed by Arbitrator Act 1996?

A

The lease

20
Q

What is the final decision called in a RR dispute?

A

Arbitrators award
Independent expert determination

21
Q

Can you sue an Arbitrator?

A

Yes, on a point of law

22
Q

In the event that a rent review you are negotiating is set to go to Arbitration, what might you do to avoid this as it’s costly?

A

Serve a Calderbank

23
Q

What is the definition of a Calderbank?

A

Genuine, unconditional offer to settle without prejudice save as to costs

24
Q

Can you serve a Calderbank as a negotiation tactic?

A

No, it is binding if agreed in writing

25
Q

Is a Calderbank binding?

A

Yes

26
Q

How long is a Calderbank on the table for?

A

21 days

27
Q

Can you accept a Calderbank after 21 days?

A

Yes, but it can also be withdrawn after this date

28
Q

Can you make more than 1 Calderbank?

A

Yes

29
Q

What does a section 25 notice actually do?

A

Terminates the current lease
Sets out the terms of the new lease
Gives grounds for refusal of new lease

30
Q

If you serve a S.25 notice 12 months before lease expiry, when would the new lease start?

A

1 day after lease expiry

31
Q

What options are available if you can’t agree on a rent in a lease renewal?

A

Part 36 offer – Civil procedure rules 1998
Same as Calderbank but for lease renewal
PACT
Mediation

32
Q

What is the role of the mediator?

A

Doesn’t make a decision simply there to facilitate a negotiation between two parties in order to reach an agreement

33
Q

What is the basis of the new lease granted by the court?

A

The old lease
The new lease is based on the terms of the old lease

34
Q

Who might a judge turn to, to get advice on the rental value of the property?

A

Expert witness

35
Q

Who does the expert witness have a duty to?

A

Court or tribunal

36
Q

What is section 30 of 1954 act and what are the grounds

A

Ground for opposing new lease
- Breach in rent payment
- Breach in repair
- Other substantial breach
- Suitable alternative accommodation
- Uneconomic subdivision
- Property to be redeveloped or demolished
- Owner occupation

37
Q

In order for the landlord to serve a S.25 notice claiming owner occupation, what must they be?

A

Competent landlord and owner for 5 years

38
Q

What about S.25 claiming redevelopment? Does the landlord need to prove anything?

A

S.Frances vs The Cavendish Hotel
Landlord must prove that they have every intention to carry out the works and not just as an excuse to evict the tenant

39
Q

What is interim rent based on?

A

Market rent

40
Q

If a lease that is outside the act has been sublet or assigned, can it be done on an inside the act basis?

A

No, because it would give the under-tenant or assignee security of tenant when the head tenant doesn’t have that right.