Landlord and Tenant Flashcards
What are the requirements of a lease?
- Exclusive occupation
- Payment of rent
- Duration for a specified term
- If more than three years the terms must be in writing, signed and registered as a deed
What is the difference between a license and a lease?
- A lease provides an interest in the land, a license is only permission to use the land
- A lease can be assigned, a license is personal
- A lease cannot be terminated until it expires, a license can be revoked at any time
Street v Mountford, 1985
What are the standard assumptions at rent review?
- Covenants observed
- Open Market
- Property use as per the lease
- Available for immediate occupation
What are the standard disregards in a rent review clause?
- Tenant improvements
- Goodwill from tenants occupation
- Goodwill attached to property
What is the case law governing whether it is a lease or not?
Street v Mountford 1985, if exclusive possession is granted of a defined area for over 6 months then it is likely to be a lease
is time of the essence when undertaking rent reviews?
No, Bello v Ideal View, 2008 a rent review was conducted 13 years late but time was not of the essence
what is the hierarchy of evidence in rent reviews?
- Open market lettings
- lease renewals
- Rent Reviews
- Independent expert determinations
- Sale and leaseback
What is a calderbank letter?
- I do not have experience dealing with Calderbank letters however I am aware that they are a mechanism for influencing costs and negotiations in rent reviews as the losing party will have to pay the other sides recoverable costs.
what are the contents of a rent review memorandum?
- Name of landlord and tenant
- Property
- Date of lease and rent review
- Confirmation of new rent agreed
- Signed and dated by both parties
what is section 23 of the LTA 1954?
sets out the requirements for protection under the act:
- It is a tenancy
- The premises must be used for a business
- Must be occupied by the tenant
- Occupancy of more than 6 months
- Must not be an excluded tenancy
- Must be a competent landlord
what is section 24 of the LTA 1954?
A business tenancy does not expire by time, but only when one party serves a notice (holding over)
what is a section 25 notice under the LTA 1954?
- Landlords notice served with no more than 12 months and not less than 6 months before the end of the tenancy
- Can be hostile or non-hostile
- Non-hostile: proposes terms of a new lease including the new rent
- Hostile: outlines ground for opposition of a new lease (ending the lease)
- Must outline the date for the termination of the current tenancy
What is a section 26 notice under the LTA 1954?
- Served by the tenant on the landlord requesting a new tenancy no more than 12 months and not less than 6 months before the end of the tenancy
- Must state the tenants proposal for a new lease including the proposed rent
What is a section 27 notice under the LTA 1954?
Tenant notice served on the landlord if they want to leave with a 3 month notice after the lease expiry date
What are the grounds for refusal of a lease protected by the LTA 1954?
- Breach of a repairing covenant
- Persistent delay in paying rent
- Other substantial breach
- Provide suitable alternative accommodation
- Uneconomic subdivision (Compensation payable)
- Demolition or reconstruction (Compensation payable)
- Owner occupation (Compensation payable)
* Grounds 1 – 4 are discretionary and the court will decide
* Grounds 6 and 7 are mandatory
