Landlord and Tenant

Question 1

What is the Landlord and Tenant Act 1954?

Answer 1

Governs the rights and obligations of LL and Ts of Premises which are occupied for business purposes.

Question 2

What does s23 of LTA 1954 stipulate?

Answer 2

6 basic elements to gain protection

Question 3

What are the 6 basic elements to gain protection?

Answer 3

Protection if - theres a tenancy - must be used for a business - must be in occupation (more than 6 months) - not an exempt tenancy - competent landlord

Question 4

What does s24 of LTS 1954 stipulate?

Answer 4

Tenancy does not expire by effluxion of time but only when one party serves a notice – ‘holding over’ when no notice served

Question 5

What are the usual assumptions for a RR?

Answer 5

1. Property available on OM with willing T and LL for a term as stated
2. Property is fit and available for immediate occupation
3. All covenants observed by LL and T
4. Property used for purpose set out in lease.

Question 6

What are the usual disregards for RR?

Answer 6

1. Any effect of goodwill on tenants occupation.
2. Goodwill attached to property
3. Tenant improvements that have consent from the LL

Question 7

What are the grounds of refusal for a new lease?

Answer 7

Section 30:
A - breach of repairing covenant
B - persistent delay in payment of rent
C - other substantial breach
D - provide suitable alternative accommodation
E - uneconomic subdivision
F - demolition or reconstruction
G - owner occupation

Question 8

What is a Calderbank Letter?

Answer 8

Early dispute resolution to prevent costs from escalating - an offer of settlement from one party to another

Question 9

Types of rent review

Answer 9

• Upwards only
• Indexation - RPI or CPI
• Turnover Rent
• Stepped increases

Question 10

What compensation can you get from a protected tenancy?

Answer 10

Grounds E-G
14 years of occupation - rateable value x 2
Less than 14 years - RV x 1

Question 11

What is the difference between an Arbitrator and Independent Expert?

Answer 11

C - costs
A - appeal
N - negligence
D - disclosure
L - legislation
E - evidence
O - outcome

Question 12

What information do you need for a RR and LR?

Answer 12

1. conflict and competency check
2. terms of engagement agreed
3. understand client objectives and strategy
4. existing lease and plans
5. all licences
6. rent review memorandum
7. tenant contact details
8. confirmation who should serve notices
9. property management file
10. comparable rentals

Question 13

What does O’May v City of London Real Estate Property (1982) give precedent to?

Answer 13

Modernisation of leases - valid reason on management grounds - must not affect security of tenure - reflect current market practice

Question 14

What are the advantages of being contracted Outside the Act?

Answer 14

• no statutory right to remain in premise
• no compensation at end of lease
• LL flexibility
• rent may be lower