Landlord and Tenant Flashcards
What is the difference between a Lease and a Licence?
Lease
- Exclusive possession.
- Specified term.
- Rent.
- Interest in land.
Licence
- Personal arrangements to occupy and cannot be assigned.
Street v Mountford 1985
What does an alienation clause do?
- Assignment is the disposal of a whole lease to another party.
- Subletting creates a subsidiary lease.
What is meant by privity of contract?
- Applies to all leases pre-1996.
- Means that the original tenant remains liable even where assigned.
What is the L&T Covenants Act 1995?
- Introduction of Authorised Guarantee Agreements.
- Abolished privity of contract.
What is an Authorised Guarantee Agreement?
Agreement between an incoming tenant and outgoing tenant upon assignment that the outgoing tenant will act as a guarantor with regards to terms and payments.
What is a standard rent review pattern?
- Upward only.
- 3 / 5 / 7 years.
- Read the lease.
What is a Section 25 notice?
Landlord notice to end OR grant new tenancy.
- 6-12 months before expiry.
- Hostile (notice to end).
- Friend (notice to grant new tenancy).
What is a Section 26 notice?
Tenant wishes to renew.
- 6-12 months before expiry.
- If Landlord wants to oppose = 2 months to serve counter notice specifying grounds for opposition.
What is a Section 27 notice?
Tenant wishes to end tenancy.
- 3 months notice required.
- Can be served before expiry under 27 (1).
What are the grounds for opposing a new lease under a Section 30?
- Breach of repair or other substantial breach.
- Persistent delay in paying rent.
- Suitable alternate accommodation (non-fault)
- Landlord wants to let property as a whole (non-fault).
- Landlord intends to demolish or reconstruct (non-fault).
- Owner wishes to occupy (non-fault).
- Uneconomic subdivision (non-fault).
- Demolition (boda fide).
What compensation is payable if opposition of a new lease is granted?
< 14 years’ occupation - 1 x rateable value
> 14 years’ occupation - 2 x rateable value
Only payable for non-fault grounds i.e., owner wishes to occupy, uneconomic subdivision, demolition.
Compensation dealt with by Section 37.
What are the ways in which a protected tenancy can be brought to an end?
- Section 30 landlord opposition alongside Section 25.
- Section 26 tenant wishes to renew (thus ending current tenancy).
- Section 27 tenant wishes to end the tenancy.
What is Section 24?
It provides that a business tenancy will not automatically come to an end at the expiry of a fixed term. The tenant will continue to ‘hold over’ until a notice is served.
What is an interim rent?
It is the rent between the expiry of the current lease and the effective date of a new lease.
It is usually backdated to the effective date of a new lease - usually 6 months after a Section 25/26 is served stating new lease date.
What does time of the essence mean?
Relates to break clauses and means that notice must be served in the time periods stipulated by the clause in the lease otherwise it will not be valid.