Landlord and Tenant

Question 1

When drafting the FBT agreement for the Cheshire Wildlife Trust, what clauses did you recommend to be amended / removed?

Answer 1

• I advised to remove a clause stating that should the tenant give them a written notice of failure to carry out work they are required to do under the agreement, that the Tenant is to do the work and recover the reasonable cost from the Landlord.
• The term of the agreement was changed from 1 year to 5 years to enable the Cheshire Wildlife Trust to be eligible for the Countryside Stewardship scheme.

Question 2

Once you had sent the FBT to the Cheshire Wildlife Trust, what alterations did they request that you deemed “not unreasonable”?

Answer 2

• They asked for Holly Bank House to be excluded from the agreement as this was not relevant to the FBT.
• They requested for “fences” to be taken out of the clause whereby it is stated that the Tenant is not allowed to remove X, Y and Z.
• They requested for the agreement to state that although maintenance off the field drains is their responsibility, it is to be paid for by the Landlord.

Question 3

How can a Landlord or Tenant terminate a FBT?

Answer 3

Serve a notice to quit, in writing, under section 5 of the Agricultural Tenancies Act 1995, unless the term is 2 years or less. This needs to be served at least 12 months before the expiry date.

If the agreement is 2 years or less, it will expire at the end of the fixed term.

Question 4

Headings in a lease?

Answer 4

• Names of parties
• Address of the Property
• The term
• The rent
• Leaseholder obligations
• Freeholder obligations

Question 5

What is Security of Tenure?

Answer 5

The right of a tenant to occupy the property after the lease expires

Question 6

What is the difference between an AHA and a FBT agreement?

Answer 6

AHA -
- an agreement under the Agricultural Holdings Act 1986
- an agreement which started prior to the introduction of the Agricultural Tenancies Act 1995 and FBT agreements
- Enjoy long term security of tenure
- Can be a written or an oral agreement

FBT -
- An agreement under the Agricultural Tenancies Act 1995
- Doesn’t enjoy security of tenure
- Has to be a written agreement

Question 7

What rights to succession are included within a AHA agreement?

Answer 7

Allows for 2 succession tenancies.

The rules changed in September 2024 surrounding the tests of suitability and eligibility.

Question 8

What agreement is the Tenant on at Appleton Airfield?

Answer 8

A Contract Farming Agreement

Question 9

What rights would your client have to remove the Tenant at Appleton Airfield

Answer 9

Either,
- A 3 month written notice, or
- a 14 day written notice should he have breached a condition of the agreement, e.g. persistent late payments

Both are subject to payment of compensation from the Landlord for crops in the ground.

Question 10

What is Forfeiture?

Answer 10

A clause which allows an agreement to be terminated on the basis that there has been a breach of contract, such as non-payment of rent.

Question 11

What is “Holding Over”?

Answer 11

Where a Tenant remains on occupation at the end of a Tenancy.

Until the Tenancy is terminated under s.24 of the Landlord and Tenant Act 1954, the Tenant has the right to remain in occupation on a year to year basis and on the same terms of the old tenancy.

Question 12

What are the ways a Tenancy can come to an end under the Landlord & Tenant Act 1954?

Answer 12

S.25 - Landlord serves a notice of termination

S.26 - Tenant requests a new tenancy

S.27 - Tenant serves a notice of termination

S.28 - Landlord and Tenant agree terms for a new tenancy

Question 13

S.25 of the Landlord & Tenant Act 1954?

Answer 13

S.25 - Landlord serves a notice of termination

Must be served at a minimum of 6 and a maximum of 12 months notice.

Question 14

S.26 of the Landlord & Tenant Act 1954?

Answer 14

S.26 - Tenant requests a new tenancy

Question 15

S.27 of the Landlord & Tenant Act 1954?

Answer 15

S.27 - Tenant serves a notice of termination

Question 16

S.28 of the Landlord & Tenant Act 1954?

Answer 16

S.28 - Landlord and Tenant agree terms for a new tenancy

Question 17

What notice needs to be served to create a FBT?

Answer 17

The Landlord and Tenant need to exchange Section 1 notices under the Agricultural Tenancies Act 1995.

Question 18

Rent Reviews under Landlord & Tenant Act 1954?

Answer 18

No statutory procedure, is up to the parties as to what is agreed in the terms of the agreement.

Question 19

Why was a new FBT requested for the CWT?

Answer 19

The previous FBT agreement was on a yearly basis. The increased term to 5 years allowed for the Cheshire Wildlife Trust to be eligible for the Countryside Stewardship scheme.

This is a grant which provides financial incentives to farmers, foresters and land managers to look after and improve the environment.

Question 20

What was the issue with the 2004 Gamon FBT not being dated?

Answer 20

Client was looking to sell the estate, and didn’t want to risk any potential issues with the purchase process, such as the FBT being argued as not being signed properly.

Question 21

What clauses were included / removed from the Gamon FBT?

Answer 21

• Changed to the updated name and address of the landlord / company
• Removed clause for rent arrears to be paid on a prescribed rate until the date when payment is made
• Removed clause that the landlord shall perform it duties and obligations as lessee under the superior lease

Question 22

Was the Barnton lease agreement contracted in or out? and what does this mean?

Answer 22

It was contracted in and had / has security of tenure.

Question 23

What were the rent provisions for the Barnton lease agreement?

Answer 23

The rent was agreed based on a Rental Price Index uplift on a yearly basis.

Question 24

What was the risk for the football club if the lease was to expire?

Why was the new lease required?

Answer 24

No major risk as they had security of tenure.

The new lease was amended to allow the club to keep up with their league requirements, and provided a long enough term to raise grant funding.

It also enabled the council to allow the local residents to use the car park.

Question 25

What tenancies does the Landlord & Tenant Act 1954 cover?

Answer 25

Residential and Business

Question 26

What does “contracted in” and “contracted out” mean?

Answer 26

Contracted in = Security of Tenure

Contracted out = No security of tenure

Question 27

If contracted in and has security of tenure, how can a agreement be terminated?

Answer 27

s.25 notice - Landlord serves notice of termination

s.26 notice - Tenant requests a new tenancy

s.27 notice - Tenant serves notice of termination

Question 28

What is the basis for rent reviews under the Landlord and Tenant Act 1954?

Answer 28

Generally it is up to the parties as to what is agreed within the agreement.

Question 29

Provisions for terminating an agreement under the Agricultural Holdings Act 1986?

Answer 29

A s.25 notice under the Agricultural Holdings Act 1986 - A notice to quit.

Question 30

Provisions for terminating an agreement under the Agricultural Tenancies Act 1995?

Answer 30

Less than 2 years = ends at the end of the agreement term

2+ years = If no notice is served, it becomes a yearly FBT agreement

To terminate the agreement, a notice to quit needs to be served, in writing, and with a minimum of 12 months notice, under section 5 of the Agricultural Tenancies Act 1995.

If a Break Clause is included within the FBT, this is also a provision which enables either the Landlord or the Tenant to end the tenancy early.

Question 31

Provisions for creating a FBT?

Answer 31

Landlord serves a section 1 under the Agricultural Tenancies Act 1995 - A notice to create - which confirms the Landlords intention to create a FBT under the Act.

The Landlord and Tenant must exchange section 1 notices to satisfy the “notice creation” within the 1995 Act.

Question 32

Rent Review provisions for a FBT?

Answer 32

Unless stated otherwise, the Agricultural Tenancies Act 1995 provides for rent reviews to take place at 3 yearly intervals.

Parties can negotiate their own rent review terms.

Landlord can serve a section 10 notice under the 1995 Act, also known as the statutory review notice, to initiate the rent review process.

Question 33

Rent Review provisions for a AHA?

Answer 33

Section 12 of the Agricultural Holdings Act 1986

Landlord or Tenant can demand arbitration as to the “rent properly payable” by serving this notice.

The new rent takes place from the earliest date of which the tenancy could have been terminated by a notice to quit.

Question 34

Difference between a lease renewal and a rent review?

Answer 34

A lease renewal is a statutory procedure laid down by the Landlord and Tenant Act 1954.
In the event of non-agreement, the matter is settled by court.

A rent review is a contractual procedure contained within a lease.
In the event of non-agreement, the matter shall be settled in accordance with the review clause, which usually states that rent is determined by an Independent Expert or Arbitrator.

Question 35

What tenancies does the Landlord and Tenant Act 1954 cover?

Answer 35

Residential and Business

Question 36

What is a s.25 notice under the Landlord and Tenant Act 1954?

Answer 36

s.25 notice under the Landlord and Tenant Act 1954 is a Landlords notice of termination.

Question 37

When can a Landlord serve a s.25 notice under the Landlord and Tenant Act 1954?

Answer 37

The notice must be served between 12 and 6 months prior to the contractual end of the tenancy, or the date specified in the notice.

Question 38

What must a s.25 notice under the Landlord and Tenant Act 1954 contain?

Question 39

When is the best time to serve a s.25 notice under the Landlord and Tenant Act 1954 contain?

Why would a landlord give 12 months notice instead of 6 months?

Question 40

What advice would you give a Landlord client in respect of a lease renewal where a property is significantly over-rented?

Question 41

What action should a landlord take if they require possession of a property at the end of a lease?

Question 42

What can a Landlord do if he cannot get a response from the tenant to his friendly section 25 notice?

Question 43

Name the grounds under section 30 of the Landlord and Tenant Act 1954 under which a Landlord can obtain possession?

Question 44

In what circumstances is a Tenant entitled to compensation when a Landlord successfully opposes a new lease under the 1954 Act?

How is Tenant’s compensation assessed under the Landlord and Tenant Act 1954?

Question 45

What is a section 34 rent under the Landlord & Tenant Act 1954?

Question 46

What is an interim rent and how is it assessed?

Question 47

In what circumstances would you recommend a Tenant to serve a section 26 notice under the Landlord and Tenant Act 1954?

Question 48

When are Tenant’s improvements disregarded at lease renewal?

Question 49

If a section 25 notice has not been served by a Landlord, there is 6 months left of a lease, and the Tenant wants to vacate the property at expiry, what action should the Tenant take?

Question 50

What are the key elements of a rent review clause under the Landlord & Tenant Act 1954?

Question 51

What is a trigger notice?

Question 52

What is a Break Clause?

What conditions are usually attached to Break Clauses?