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Commercial Real Estate 2023 > Landlord and Tenant > Flashcards

Landlord and Tenant Flashcards

1
Q

What is the difference between a lease and license?

A

-lease is legal interest, that is transferable.
-exclusive occupation.
-fixed term, for a rent.
-can’t be termianted at any time.

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2
Q

What is the Landlord and Tenant Covenants Act 1995

A

Legislation bought in to release tenants from the covenants of the lease upon assignment, UNLESS an AGA was requested.

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3
Q

What is the LTA 1954

A

LTA relates to business tenancies and their right for renewal upon expiry of the lease.

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4
Q

What are the six requirements of gaining security of tenure?

A
  • it is a lease not a license.
    -term of over 6 months.
    -Must be running a business.
    -a business is run in part of property.
  • there must be a competent landlord.
    -can’t be excluded tenancy.
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5
Q

how do you contract a lease out of s.24-28?

A

Simple dec- ‘health warning’ served to tenant 14 days in advance of lease being signed.
Stat dec- signed by tenant anytime prior to lease signing in front of independent solicitor.

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6
Q

what is the landlord and tenant covenants act 1995?

A

Legislation bought in to release tenants from covenants of their lease upon assignment.

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7
Q

what is privity of contract?

A

For old leases pre 1996 original tenant was left ‘on the hook’ when the lease was assigned.

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8
Q

What section does section 24 relate to?

A

holding over under 1954 act
24a interim rents

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9
Q

what section does section 24a relate too?

A

interim rents

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10
Q

what is an interim rent?

A

interim rent is the rent between expiry of the old lease, and when a new lease is agreed. Usually landlord would make an application to the court.

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11
Q

what is a section 25 notice?

A
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12
Q

how do you settle a lease renewal if it can’t be agreed?

A

PACT
Mediation
court

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13
Q

How long can the court grant a new lease for?

A

15 years

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14
Q

what part of the 54 act relates to grounds for refusal?

A

part 30 grounds, a-g. E,F,G are the no fault grounds.

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15
Q

can you use PACT/ COURT terms on a lease outside the act?

A

No.

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16
Q

what section of the act is contracting out?

A

38

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17
Q

starting point for the new lease is always the old lease, what is the lead case?

A

O’May v City of London, unless you can justify a departure.

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18
Q

what are the main differences between independent expert/ arbitrator?

A
  • independent expert uses own knowledge.
  • arbitrator uses knowledge of expert witnesses/reports submitted.
    -arbitrator not liable negligence, IE is.
    -Independent expert costs are allocated as per the lease, arbitrator makes an award of cost.
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19
Q

What is best in a falling market?

A

an arbitrator best for landlord in a falling market.

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20
Q

what is best in a rising market?

A

independent expert.

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21
Q

what is a section 40 notice?

A

a notice requesting information about either party.

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22
Q

what are the third party determination mechanisms for a rent review?

A

Independent expert/ arbitrator

23
Q

what are the third party determinations for lease renewal?

A

PACT
County Court

24
Q

what are deeming provisions?

A

when a trigger notice needs to be sent to a tenant to kick start a rent review. If this is not acknowledged then this could be seen as accepting the R.R.

25
Q

What did you include in your R.R memo?

A
  • landlord details
  • tenant details
    -date of lease
  • details of property
  • new rent
    -signed by both parties
26
Q

how did you agree a fee basis?

A

this was no win no fee, and if win then 10% of uplift.

27
Q

what are other fee basis?

A

fixed.
percentage.

28
Q

what are other fee basis?

A

fixed.
percentage.

29
Q

if you are representing a landlord how would you advise your client in a falling market?

A

don’t serve section 25, as T may ask for interim rent. Let them hold over as long as possible.

30
Q

If you were is a rising market how would you advise your client?

A

serve non hostile section 25, setting out new terms of a tenancy.

31
Q

what do expert witnesses do?

A

provide evidence to arbitrators and independent experts. Duty is to the court, not to client.

32
Q

what is an expressly granted easement?

A

a personal right of access from the servient landowner to the dominant landowner, via a registered deed.

33
Q

can you name some other types of easement?

A

implied/ necessity - where your land is landlocked and that is the only way to access. Often happens in a sale or subdivision.

Permissive- where there has been continued use of land for over 20 years with knowledge of the servient land owner and no objection.

33
Q

how does a wayleave differ from an easement?

A

access to enter once and lay cables. Usually annual rental amount, not transferrable.

34
Q

How would you determine the hypothetical term on the lease in a R.R if there wasn’t a term?

A

remainder of the lease term.

35
Q

Can you talk me through your OMV rent review example?

A
36
Q

How did you weight the evidence?

A

reynolds and bernstein R.R handbook

open market lettings
rent reviews, lease renewals

37
Q

what other basis of value are there for R.R?

A
  • OMV
    -CPIR/RPI
    -Stepped
    -turnover
38
Q

what was your fee basis for this rent review?

A

No win, no fee. But if a win 10% of the uplift.

39
Q

What were the assumptions and disregards?

A

Assumptions
- for a hypothetical term, between willing landlord and willing tenant.
- premises fit for use.
-landlord and tenant observing covenants.
-used for the permitted use.

Disregards
goodwill of the tenant
goodwill of the building
ALTERATIONS- if documented.

40
Q

what is included in rent review trigger notice?

A

landlord name, tenant name, property, date of R.R, proposed rent.

41
Q

what is included in R.R memo

A

landlord name, tenant name, property, date of R.R, agreed new rent, signed by both parties.

42
Q

under what Act are easements granted?

A

Law and Property Act 1925

43
Q

Can you tell me why you advised your client to enter into a deed of surrender when they could have potentially collected more rent?

A

As there was only a little over a year left on the license, and we had potential other on going negotiations with the tenant on the park this seemed like the most equitable outcome for both parties. The tenant was the largest mobile network operator in the UK so was very solvent, therefore I advised that they were more than able to pay off the arrears.

44
Q

What information led to you establishing that the plots had minimal value?

A

After doing due diligence and discovering that the land was allocated as MOL, I spoke to our client side planning advisor who advised that P.P for any sort of development would never be granted. Therefore I concluded that for both parties the value of the landswap was in having a tidy title and one that matched the boundary of the olympic park fence line.

45
Q

what information would you gather from a client at the commencement of a lease renewal?

A
  • the lease
  • inside of outside the act
  • any side letters
    -license to alter
    -deeds of variation
    -schedules of condition
  • arrange inspection
    -what client objectives are
    -COMPARABLE EVIDENCE
46
Q

what information would you gather from client at beginning of a rent review?

A
  • the lease
  • license to alter
    -arrange to inspect the unit.
    -rent review memos
    -COMPARABLE EVIDENCE
47
Q

how long do you have to respond to a section 40?

A

1 month

48
Q

how long does a landlord have to respond to section 26?

A

2 months

49
Q

Does the landlord need to have P.P to oppose under section 30 ground (f)?

A

No, but needs to have evidence that it would be likely they would be granted.

50
Q

what are the seven grounds for opposition under section 30?

A

a) failed repairing
b) non payment of rent
c)any other breech
d) alternative accommodation
e) uneconomic subdivision
f) redevelopment
g) wanting to reoccupy the property for own use.

51
Q

explain grounds e,f,g

A
52
Q

how much compensation is payable under the fault grounds?

A

under 14 years 1x R.V
over 14 years 2x R.V

Commercial Real Estate 2023 (13 decks)

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