Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

APC > Landlord and Tenant > Flashcards

Landlord and Tenant Flashcards

1
Q

Why would you contract out of the security of tenure provisions?

A

Control - This allows for more control over the premises at the end of the fixed term

Lease Terms - This also allows for greater flexibility on lease terms and ability to agree a lease on differing terms at the end of the lease

Possession - The landlord hasn’t got to have a reason and also go through likely costly measures to seek possession at the end of the fixed term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What do you need to serve prior to a tenancy starting?

A

How to Rent Guide
EPC
EICR
Landlord Gas Safety Installation Certificate
Information leaflet on Tenancy Deposit Scheme
Draft AST with Prescribed Information
Completion Statement
Cover Letter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What do you need to serve prior to a Farm Business Tenancy?

A

a s1(4) notice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What does a s1(4) notice do?

A

s1(4) is the notice condition of the act. It says that the tenancy is to be and remain a farm business tenancy. It ensures that we are not inadvertently creating a 54 act lease.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the structure of a lease agreement?

A

A lease agreement contains a cover page with both parties involved and the premises identified.
Then it contains the main terms of the tenancy, such as date signed (or to be signed), the parties to the lease & addresses, the property, the term date, the rent review provisions and deposit held
Then the lease details interpretations for the lease
Then the lease details Tenants and Landlords obligations
Then Termination procedures
Schedules with ancillary rights
A plan of the premises
signing page

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the purpose of the Heads of Term?

A

To establish an agreement in principle on the more substantial terms that will be contained in the lease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Do Heads of Terms need to be signed?

A

No, they are not intended to be legally binding but instead form the basis the lease is based upon. They might be signed however to acknowledge agreement from both parties.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How would you contract out of the Landlord and Tenant 1954 Act?

A

Serve upon the prospective tenant a warning notice, stating that s.24-28 of the Landlord & Tenant Act 1954 will not apply
If it is over 14 days notice from the start date I would ask the prospective tenant to acknowledge the warning notice by signing a simple declaration
If it is within 14 days I would ask the prospective tenant to acknowledge the warning notice by signing a statutory declaration, sworn by a solicitor
I would then ensure the lease refers to the notice & declaration & relevant dates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is section 24 of the Landlord & Tenant act 1954?

A

s.24 states that tenancies for which it applies, which haven’t been contracted out, shall not come to an end at the end of their fixed term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is section 25 of the Landlord & Tenant Act 1954?

A

s.25 is the provisions for the landlord to end a contracted in tenancy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is section 26 of the Landlord & Tenant Act 1954?

A

s.26 is the tenants request for a new tenancy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is section 27 of the Landlord & Tenant Act 1954?

A

s.27 is the notice by the tenant to terminate a contracted in tenancy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is section 28 of the Landlord & Tenant Act 1954?

A

s.28 is agreement between landlord and tenant to grant a renewal tenancy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How would you end a contracted in tenancy?

A

I would need to serve a s.25 notice upon the tenant, within 6-12 months of the lease end date
If the tenant does not object then the tenancy will end on the date specified
If the tenant does object then I would apply to the courts for order of termination of the existing tenancy, stating one of the grounds in s.30 of the Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the grounds for terminating a contracted in lease?

A

a - tenant has failed to comply with repair obligations
b - tenant is persistently late in paying rent
c - there have been substantial breaches in the terms of the tenancy
d - suitable alternative accommodation is provided by the landlord on reasonable terms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What would you advise the client if they received a s.26 notice for a commercial tenancy?

A

Firstly, I would make them aware that by the tenant serving this they are proposing a new tenancy
Secondly, I would advise them that this will meant the property is occupied them on a further secure tenancy for the term stated and as a result there is less control over the property
Case by Case - I would advise on whether I thought the proposed lease terms were favourable
Counter Notice - I would advise them that if we don’t want the renewed tenancy we need to serve counter notice within 2 months of s.26 notice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What date were farm business tenancies first granted?

A

Tenancies granted on or after 1st September 1995

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

When is an Agricultural Holdings Act tenancy applicable?

A

For tenancies governed by the Agricultural Holdings Act they need to be granted before the 1st September 1995

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

When does a AHA tenant have succession?

A

If the tenancy was granted prior to 12th July 1984 the tenant has 2 successions
If the tenancy was granted between 12th July 1984 and 1st September 1995 the tenant has a life tenancy with no succession

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

When can you review a farm business tenancy?

A

If the tenancy is agreement is silent then the review for long term FBT’s is every 3 years, by serving a s.10 notice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

When can you review an AHA tenancy?

A

An agricultural holdings act tenancy can be reviewed every 3 years, by serving a s.12 notice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the tenants compensation rights under the Agricultural Holdings Act at the end of a tenancy?

A

Compensation is granted for:
- Major Long term improvements
- Short Term improvements
- Tenant Right

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are the main differences between the Agricultural Holdings Act & Agricultural Tenancies’ Act?

A
  • Security of Tenure - there is security of tenure for the life or successors of AHA tenancies, which is not provided for by FBT’s
  • Rent Reviews - FBT rent reviews are based upon market rent (or as stated in the agreement), and AHA rent reviews are based upon market condition, productive and related earning capacity of a holding
  • Date granted - FBT’s are granted on and after 1st September 1995, and AHA’s are granted before this date
  • Repairing Obligations - FBT’s provide freedom of contract whereas AHA’s have the 2015 model clauses
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is the Productive capacity?

A

An assessment of the holdings potential for production in the hands of a competent tenant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is the Related Earnings Capacity?

A

An assessment after considering the productive capacity, for a competent tenant to profit from the holding.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

How would you increase the rent for an Assured Shorthold Tenancy?

A

Firstly, check when the last review was undertaken (we tend to carry out 2 year reviews). I would then advise the client of this and the likely rent I would expect.
Secondly, after their agreement I would meet the tenant to discuss the rent increase, typically tying it in with an annual inspection
Thirdly, upon agreement I would write to the tenant and serve a Form 4B notice, with the increase and date it will take effect
Finally - I would update our system and inform our accounts team of the change

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is RPI?

A

Retail Price Index

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What does RPI include and show?

A

RPI is a measurement of inflation published monthly by the Office for National Statistics
It includes mortgage interest payments, cost of goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is CPI?

A

Consumer Price Index

30
Q

What does CPI include and show?

A

CPI is a measurement of inflation published monthly by the Office for National Statistics
It includes cost of goofs and services, but doesn’t take into account for housing costs

31
Q

How do you review a Rent Act 1977 tenancy?

A

Firstly, I would check whether it is over 1 year and 9 months since the last review
Secondly, I would meet the tenant to inspect the property and make them aware we are applying to the VOA for rent assessment
Thirdly, I would fill in the RR1 form and submit to the VOA
Fourthly, upon receiving the fair rent assessment from the VOA I would serve an increase notice to the by Form 1 Notice
Finally, I would reflect this in our property terrier system and inform our accounts team

32
Q

What are the regards and disregards for a fair rent application?

A

Regards:
1) Services provided by Landlord
2) Furniture included in tenancy
3) Landlords improvements

Disregards:
1) Disrepair caused by the tenant
2) Tenants improvements
3) Personal circumstances of both Landlord & Tenant

33
Q

What are the differences between a lease and licence?

A

The differences were set out in Street v Mountford 1985 and are three qualifying factors are:
1) To be a lease there muse be exclusive possession of the property
2) To be a lease there must be a certain period of time, start date and end date
3) To be a lease there must be the provision for payment of rent

34
Q

why would you grant a licence and not a farm business tenancy?

A

Control - a licence gives the licensor better control over the land
Use - the licensor can still use the premises, for purposes such as taking a crop of hay, or CSS

35
Q

For the Farm in Sussex, what option was included within the CSS agreement?

A

It included option GS2 - Permanent Grassland with low inputs

36
Q

How much does GS2 pay?

A

£132 per hectare

37
Q

What did the licensee need to comply with for the Grazing licence?

A

The licence made reference to the key requirements of the GS2 option:
- No mechanical operations between 15th March and 30th June - hay cutting
- No ploughing cultivating or reseeding
- No pesticides & only herbicides for spot treatment
- Comply with the input requirements, 12 tonnes/hectare of farmyard manure. 9kg/hectare of nitrogen

38
Q

How did you ensure the licensor complied with the CSS requriements?

A

Made clear through communication - Clear requirements of CSS in licence, Spoke to licensor and let them know the requirements
Also Licence was just for grazing, and included a provision for termination for breaches in the agreement

39
Q

What would happen if the CSS agreement was breached?

A

If there is a breach an inspector may visit and report their findings. These findings may be to rectify something that is wrong or to repay a proportion of the grant or all of it and all monies received.

40
Q

Did you have an option agreement in place for the solar land which you put a licence in place for?

A

Yes. There was an option agreement signed in 2017 for the land.

41
Q

Can you tell me about the licence you put in place over the land with solar development?

A

The licence was a grazing licence specifically for sheep. This had been in place with the same licensor and licensee previously and I was renewing. The land had consent for solar development and battery storage, but we were awaiting a date from the developer to when this was to be installed. Because it was likely to be during the licence term I put an early termination clause in the licence for the one field affected

42
Q

What did the option agreement contain?

A

It included details of the Landlord & Energy Company
Details of the Option
The Option Period (2 years)
The Option Notice
Extension Period
Option Fee

43
Q

Were the energy company happy for the licence to be in place?

A

They were aware it was in place and were happy with it. It ensured the management of the land and also was agreed with them

44
Q

Why did you negotiate a stepped increase?

A

Clarity - there was clarity from both sides which both Landlord and Tenant wanted, particularly during the Covid 19 pandemic
Not Market affected - It is not linked to markets and provides a guaranteed increase in rent over the lease term

45
Q

What is a deed?

A

A deed is a legal instrument in writing which confirms an interest or right in land. It needs to follow certain formalities such as being witnessed

46
Q

When does a lease need to be drawn up by a solicitor?

A

When it is over 3 years as it needs to be executed as a deed

47
Q

Why do leases need to be completed by a solicitor when over 3 years?

A

They need to be signed as a deed as required by the Law of Property Act 1925. And because a Deed needs to be drawn up by a solicitor

48
Q

Why did you serve a s.9 notice?

A

To ensure the tenancy didn’t become an assured agricultural occupancy which would afford the tenant certain security of tenure rights over and above a standard AST

49
Q

When do you serve a s.9 notice?

A

Prior to the tenancy starting

50
Q

When can’t you grant an AST?

A

Rent - if the annual rent is over £100,000, or less than £250 outside of london
Acreage - less than 2 acres
Main residence - tenants main residence

51
Q

What are the qualifying factors for an agricultural Occupant?

A

Landlord - The landlord must be the employer, or the tenants employer must have made arrangements with the Landlord for their occupation
Occupier - The occupier must be a qualifying worker - must have worked in agriculture for 91 out of the past 104 weeks

52
Q

Please tell me about the situation where your client was planning to sell?

A

The client had not been using the property for a number of years and was exploring the idea of selling, at present it was let on tenancies. The property included a residential element - being a small detached bungalow and a large detached house and an agricultural element - consisting of 55 acres of permanent pasture, there was also a farmyard which had consent for development.

53
Q

Catt’s Place - What did you advise in terms of the tenancies and how to regain possession?

A

I advised that to maximise the price received on a sale we would need to seek vacant possession. And I advised that for the bungalow, the fixed term was to end in September 2022 and recommended that we

54
Q

Why would market value be downgraded without vacant possession?

A

This is because the pool of buyers would be decreased therefore decreasing the demand for the property.
Also the tenancy would transfer to the new landlord on sale, which in turn would put certain liabilities on them to uphold

55
Q

Why did you recommend that rents were reviewed after the coronavirus pandemic?

A

The properties were already overdue a review and that if we held off on actioning the rental increases it would impact tenants more. Because the rents were based on market rent and RPI increases which over time was increasing, so if we waited the increase would be a much higher rise and hit for the tenants.

56
Q

What strategy did you advise for undertaking the rent reviews?

A

My strategy was to:
- First look at the proposed increases. Which I did using the comparable method and Retail Price Index. I then agreed proposed increases with my client.
- Secondly, I wrote to the tenants with the proposed increase and recommended a date that I come an undertake the annual inspection to speak this through with them
- Once agreed I served the necessary notice and updated our property terrier system

57
Q

What are significant rental arrears?

A

In this case the rental arrears represented over 12 months rent, which are significant

58
Q

Please tell me what you advised your client prior to recommending seek possession for the rent act tenant in Buckinghamshire?

A

I advised the client that we propose a payment plan for the tenant to comply with, whereby the tenant would pay back the monthly rent and arrears over a time period. I advised that I met with the tenant to discuss further. I also advised due to the security of tenure that we should try and avoid going to court if possible.

59
Q

Does a s.21 notice need to be drafted by a solicitor?

A

No, you can draft the notice yourself in the prescribed form 6A. But for more complex cases it may be advisable to seek legal advise.

60
Q

What is a deed of surrender?

A

A legally binding written document, which extinguishes the tenants interests in the land.

61
Q

What are the succession rights for AHA tenancies?

A

There is two facets, the Eligibility and Suitability tests.
Eligibility:
- need to be a close relative of the deceased or retiree
- needs to have been the principal source of livelihood for 5/7 years
Suitability:
- Knowledge and previous experience of farming

62
Q

How would you end an AHA tenancy?

A

Serve a notice to quit under s.25 of the Agricultural Tenancies Act 1986, stating one of the cases:
Case B - The land is required for use other than agriculture
Case D - The tenant has failed to comply with a notice to pay rents due

63
Q

How would you end a Rent Act 1977 tenancy?

A

I would need to apply to the courts for possession and site one of the cases listed in schedule 15 of the 1977 act.
Case 1 - unpaid rent
Case 8 - the landlord needs the house to house an employee
Case 9 - the landlord wishes to live in the house themselves

64
Q

Why would you not be able to apply to the courts, why involve solicitors?

A

The level of expertise required warrants a specialist solicitor with a knowledge of 1977 Rent Act evictions
It was also during the end of the coronavirus pandemic when special care was required for such evictions and extended notice periods
Case 1 is a discretionary notice, therefore evidence needs to be compiled and proven in the court. Which is over an above what I am qualified to advise on

65
Q

Did you seek possession of the property, what was the outcome in the courts?

A

The client agreed with me and we instructed solicitors to proceed. Unfortunately I left the company before it came to fruition

66
Q

Why had the rent for the property in Berkshire not been reviewed for some time?

A

The client had a fairly relaxed approach to rent reviews, and when we took on management of the portfolio we assessed where rents could be improved. This was such a property. Due to the local market improving significantly in recent years this was also worsened

67
Q

What was the rent for the cottage in Berkshire? What was the likely market rent?

A

It was currently £850 per month, and the market level was around £1,400 per month

68
Q

What did you agree with the tenant to step the rent?

A

I advised the client that the rent review provisions in the lease allowed for increase to market rent. Therefore we implemented an increase by £100 per month, which the tenant could afford. I spoke to the tenant to make them aware that this arrangement would be in place for one year, after which we would increase to market rent of the time.

69
Q

Why didn’t you evict the tenant as he wasn’t able to afford the increased rent?

A

I advised the client that this was an option, however they didn’t want to evict them as they had a friendly relationship with them.
It also meant that there would be additional costs associated, whereby seeking a stepped increase means that the tenant has time to work out an option

70
Q

You mention the abolishment of s.21 notices, what do you mean by this?

A

By this I refer to the Renters Reform Bill which proposes to end no fault section 21 notices. There was a white paper published in June which details the likely operation. This would deliver a simpler tenancy structure - periodic system

71
Q

How else could you seek possession for a property?

A

Serving a section 8 notice stating a specified ground. Ground 8 - 2 months rent is unpaid.
Others - Ground 3 - this was served prior to the start of a tenancy - stating a short term tenancy of less than 12 months

72
Q

What is your advice on the back of the s.21 abolishment?

A

My advice is currently that we don’t know for certain the core facts, I would advise clients to sit tight until more is known
I would add that from the initial white paper the proposals don’t appear to be doom and gloom. Section 8 is still going to be an option for recovery and the government appear to want to bolster the grounds for recovery under this ground.

APC (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions