Landlord and Tenant 1 Flashcards
What are the 4 requirements for a lease?
Exclusive possession
Rent payable
For a term certain
Longer than 6 months
What case law deals with the 4 requirements for a lease?
Street v Mountford
- exclusive right to occupy a furnished room for a rent - constituted a tenancy
What are the security of tenure provisions – what does it give tenants?
Right to remain in the property at the end of the term / right to renew
Are leases contracted in or out of the act at the time of drafting?
Leases are contracted inside the act unless stated otherwise
How do you then contract out?
Simple / Statutory declaration
What is the difference between a statutory declaration and a simple declaration
Statutory has to be notarized by a solicitor and is served within 14 days
Simple served over 14 days
What does subject to contract mean
It is not binding and the agreement is subject to being engrossed in contract
What does without prejudice mean?
It cannot be used as evidence in court
What’s the first thing to do to instigate the rent review no behalf of the landlord
Check competency, conflicts, ToE
Then check lease, review rent review clause. Mechanisms, Asusmptions and disregards. Time is of the essence, how to serve notice
What is time of the essence
Time is material to the provision / clause of the contract
How do you know if time is of the essence?
United Scientific Holdings vs Burnley borough Council
It is expressly stated in the lease
Give me one of the standard assumptions in a rent review clause
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
What are the implications of a long hypothetical term – longer than standard market practice
Lower rent
What are the disregards in a RR
Tenant improvements
Tennant occupation
Goodwill
Licences for the sale of liquor
Are all tenants improvements likely to be disregarded?
No, rentable if:
If undertaken over 21 years ago
If undertaken as a condition of the lease
Unlawful – without seeking permission
Tell me about the dispute resolution options available in a rent review
Arbitration
Independent Expert