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RICS Session 1 > Landlord and tenant > Flashcards

Landlord and tenant Flashcards

1
Q

What’s the difference between a lease and license?

A

Lease gives exclusive possession

license gives permission to do something that was otherwise illegal

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2
Q

What is assignment and subletting?

A

assignment- dispose of lease

Subletting- a subsidiary lease created

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3
Q

Tell me different types of tenancy?

A

Fixed term, periodic, statutory, contracted out if 1954 act, reversion, license, tenancy at will, tenancy at sufference

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4
Q

what is a review review? and typical basis

A

A review of the rent, normally at a particular date or 5 yearly basis normally upwards only and on an open market rent review basis

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5
Q

What is an interim rent

A

a rent payable after current lease has ended

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6
Q

Talk me through a rent review from start to finish

A
  1. Conflict Check
  2. Agree TOE
  3. Find out client objective
  4. Read Lease, check if contracted out and understand review clause
  5. check time limits for review
  6. check notice requirements and time limits for implementing stages of the RR
  7. inspect and measure
  8. seek out comparables
  9. adjusted and analyse
  10. Value to estimated rental value or basis specified in lease
  11. Report to client and agree next steps and negotiating strategy
  12. negotiate with opposing party
  13. Settle or refer to 3rd party
  14. Document, instruct solicitors if required
  15. Issue invoice
  16. diarise next lease event
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7
Q

Tell me about lease renewals?

A

LL and tenant act 1954 act grants the right to lease renewals.

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8
Q

What are the grounds for possession under section 30 of LL and T act 1954-

A
  1. breach of repair
  2. persistent delay in paying rent
  3. substantial breach (non fault)
  4. suitable alternate accomadation
  5. LL wants to let property as a whole
  6. LL intends to demolish or reconstruct
  7. Owner wishes to occupy
  8. Uneconomic subdivision (non fault)
  9. Demolition ( non fault)
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9
Q

What is the compensation for S30 non fault grounds for possession?

A

less than 14 years occupation = 1x rateable value

more than 14 = 2x RV

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10
Q

what is section 24 of LLTA 1954

A

Section 24- lease will continue until L or T serves notice, also interim rent payable from earliest date specified in s25/26

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11
Q

whats section 25 of the LLTA 1954

A

Section 25- LL wishes to end or grant new. 6-12 months before. Friendly or hostile.

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12
Q

what is section 26 LLTA

A

Section 26- T wishes to renew. 6-12 months prior to end. If LL wants to appose- a counter notice has to be served within 2 months

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13
Q

what is Section 27

A

section 27- T wishes to end tenancy 3 months notice

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14
Q

What is section 30 of LLTA

A

Section 30- LL opposes new lease

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15
Q

How do you carry out a lease renewal?

A

I would read the lease, check it is inside the act and renewal provisions.

Who am I acting for?
If LL serve a section 25 notice to renew with a year of end of lease to 3 months prior.

If tenant- Section 26 notice.

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16
Q

What are some assumptions you would make for a rent review?

A

Use is the same, property is let to willing party on open market terms, similar length lease, disregards tenants improvements, vacant possesion, willing parties

17
Q

what are some of the disregards you could make for a rent review?

A

Tenants occupation, goodwill, rent free periods, tenant fit out

18
Q

Tell me about the Birmingham office / industrial market

A

Demand/ supply,

Covid

19
Q

Talk me through the structure of a lease

A 
Date
Definition page
Parties to the lease
The property
Rights granted with the property
Regulations
Lessee’s obligations
Access
Landlord’s obligations
Length of lease
RR
20
Q

For your rent review in Birmingham, what were the key elements of the lease that impacted your exercise?

A

Basis of rent review, review date, whether time is of the essence, use of property in the lease

21
Q

What can you tell me about the Commercial Rent (Coronavirus) Act 2022?

A

An arbitration process. New legislation in order to help landlords and tenants decide how much of the tenants arrears should have to be payable and we would always in the first instance advise our clients try and come to a deal directly with their landlord/tenant.

22
Q

What is a calderbank letter?

A

A letter containing a settlement offer and written “without prejudice save as to costs”. Usually used for Rent reviews

RICS Session 1 (19 decks)

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