Landlord and Tenant Flashcards
What recourse does a landlord have when a tenant is breaching the terms of the lease by failing to maintain the property in good condition?
LL could:
- Serve a section 146 notice of the Law of Property Act 1925
- Serve a section 25 notice on grounds section 30(1)(a) of the Landlord and Tenant Act 1954 (protected lease only)
Serving a Section 146 notice of the Law of Property Act 1925 is a process used by a landlord to terminate a lease due to a breach of covenant by the tenant. This notice is usually served when a tenant has failed to comply with one or more of the terms of the lease, such as failure to pay rent or maintain the property in good condition. The notice is a formal document that sets out the breach of covenant and gives the tenant a specified period to remedy the breach, failing which the landlord may commence legal proceedings to forfeit the lease.
On the other hand, serving a Section 25 notice on grounds of Section 30(1)(a) of the Landlord and Tenant Act 1954 is a process used by a landlord to terminate a commercial lease at the end of the contractual term. Section 30(1)(a) provides that a landlord may oppose the renewal of a lease if they can demonstrate that they have a genuine intention to occupy or redevelop the property. The notice must be served on the tenant at least six months before the end of the lease and must specify the grounds for opposition.
In summary, the main difference between the two notices is that a Section 146 notice is used to terminate a lease due to a breach of covenant by the tenant, whereas a Section 25 notice is used to terminate a lease at the end of the contractual term, subject to certain conditions being met.
What recourse would a landlord have to take back their rent arrears?
Commercial Rent Arrears Recovery
What’s the difference between
Lease
1. Exclusive possession over a defined area
2. Fixed term
3. Rent
Licence
= Personal permission that does not create an interest in land
Case law: Street v Mountford (1985)
Courts will look at the substance of the agreement rather than the titled
TAW
1. Cannot be assigned by tenant
2. No interest in land (e.g no security of tenure)
3. Requires careful drafting to avoid
What type of occupational agreement might be suitable for the temporary letting of a shop?
TAW (few days) or License (few weeks)
Probably not a lease as you don’t want to give security of tenure
How would you contract out of the LTA?
- warning notice
- tenant makes simple or stat dec
- explicit lease clause records the exclusion of the act
Updates to legislation for L&T since LTA 1954?
Regulatory Reform (Business Tenancies) (England & Wales) Order 2003
- Changes to interim rent provisions (S.24)
- Changes to contracting out procedures
- Changes to s.25,s.26, s.27
IN MARCH 2023, Law Commission are going to review the LTA 1954 by focusing on security of tenure. They will consider whether the Act is still fit for purposes (more and more leases are contracted out). They will publish a consultation doc by DECEMBER 2023
Who appoints an arbitrator or independent expert?
The president of the RICS
Assumptions you would see in a RR clause?
- vacant possession
- property is fit for immediate occupation and use
- tenant has met all their covenants
- hypothetical term
Disregards in RR clause
Tenant improvements (accepted or under 21 years)
Tenant goodwill (value placed on property from tenant’s good brand)
In a RR dispute, How would you protect your client’s position on costs?
Calderbank offer = a binding offer to settle, it must be replied to in 21 days (can vary). Stated to be without prejudice save as to costs
ONLY USED FOR ARBITRATOR
Arbitration Act states that “unless otherwise agreed, costs will be split equally” SO the arbitrator has the “right to award costs”
Can a calderbank offer be made during an independent expert process?
No
Arbitrator only has the right to award costs
