Landlord And Tenant Flashcards

1
Q

What is interim rent?

A

Rent payable after current lease ends and into holding over period
Landlord/tenant can apply for after section 25/26 served
Effective from earliest date a new lease would be effective
- 6 months after noticed served
Market rent from date of new lease backdated to interim rent

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2
Q

Types of dispute resolution?

A

Rent reviews - independent expert or arbitrator

Lease renewal - Professional Arbitration on Court Terms (PACT) or court

Calderbank offer = Calderbank v Calderbank
- offer to settle
- without prejudice as to costs
- resolver unaware until decision to successful party
- costs awarded to successful party
- in rent review: offer on certain basis
: parties bear own costs
: time limit to accept

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3
Q

What are rights to new tenancy?

A

Same as previous tenancy
Sae terms unless good reason
- O’May test = not impose disproportionate terms on tenant
Tenant serve section 26 between 6 - 12 months

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4
Q

Outline sections from Landlord and Tenant Act 1954

A

23 - business tenancy
24 - lease ends via provision in the act
24a - application for determination of interim rent
25 - Landlord end tenancy
26 - Tenant end and request new lease
27 - Tenant end
28 - regear (usually rent/term)
29 - order by court for new tenancy
30 - Landlord grounds to oppose
37 - compensation
28 - health warning (contracting out)

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5
Q

What are the notices under Landlord and Tenant Act 1954?

A

Section 24 - Tenancy to continue until landlord or tenant notice

Section 25 - 6-12 months landlord request to end/grant new

Section 26 - 6-12 months landlord opposes new lease, serves counter within 2 months including grounds

Section 27 - tenant three months notices of leaving after expiry
- can serve prior to expiry

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6
Q

How to manage a rent review?

A

Check conflicts of interest
Check Terms of Engagement
Object
Lease
Time limits
Notice period
Inspection and measure
Obtain comparables
Analyse
Value
Report
Negotiation
Settle/refer
Document agreement
Invoice
Diarise

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7
Q

Is time of the essence?

A

Not usual but check the lease

Basis of requirements within lease

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8
Q

What assumptions during rent review?

A

Hypothetical lease
Let on open market
Willing tenant
Fit to occupy and use
Vacant possession
Assumed term
User as per lease
Date
Basis
Other terms

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9
Q

What to disregard during a rent review?

A

Tenant occupation
Rent free
Goodwill

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10
Q

What is a part 36 offer?

A

From civil procedure rules
Offer to settle - specify period not less than 21 days
If not accepted = no higher value - cost consequence to claimant

Without prejudice as to costs
Make in writing and clear related to Part 36
- accept anytime unless withdrawn in writing
- accept then the other bears costs to point

Can be withdrawn

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11
Q

Why use a Part 36 offer?

A

Tempting if offer settle and pay costs

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12
Q

Why use a Calderbank offer?

A

Flexible
Best offer being genuine and cost at risk if wrong

Not governed by strict rules

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13
Q

What is arbitration and independent expert?

A

Arbitration = discretion over costs and account conduct

Independent expert = no authority to award costs, depends on agreement of parties

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14
Q

What are dilapidations?

A

Often made at the end of the lease
Given back as lease specified
Improvements less permission gives rise to dilapidations

Terminal - lease end or after - refer to yield up and repair
Interim - during and prior to expiry
Final - before end of

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15
Q

What is a breach to repair notice?

A

Repair obligation not complied with
Landlord serve notice under section 146 Law of Property Act 1925 to commence forfeiture proceedings

Tenant can seek relief

Jervis V Harris - allows landlord to serve a notice on a tenant to carry out repairs

Dilapidations part of Civil Procedure rules

Compensation to Landlord capped by section 18 Landlord and Tenant Act 1927

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16
Q

What is section 18 of Landlord and Tenant Act 1927?

A

Damages for a breach of a covenant or agreement to keep or put premises in repair

Compensation limited to diminution value

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17
Q

What act govern landlord and tenant relations?

A

Landlord and Tenant Act 1954 - security of tenure

Landlord and tenant act 1927 - landlord not unreasonably withhold consent

Landlord and tenant act 1995 - privity of contract

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18
Q

What is the Code of Leasing Business Premises 2020?

A

Improve quality and fairness of negotiation

Outlines:
Demise
Term, lease renewal and breaks
Rent deposit and guarantees
Rent and reviews
Service charge and insurance
Assignment, subletting and sharing
Repairs
Change of use, alienation and fit out
Insurance and damage
Management and operational performance
EPC
Landlord title

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19
Q

Outline example case law

A

Frances V Cavendish
- section 30 grounds
- Landlord genuine intention to redevelop

Canary Wharf V European Medicines Agency
- Brexit frustrate lease
- HQ move
- Pay rent and stick to lease covenant

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20
Q

What is a break clause?

A

Landlord or tenant right to terminate lease

  • vacant possession
  • issue in prescribed format
  • compliant with lease obligations
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21
Q

What is pre action protocol?

A

Conduct court expect from both before escalation
Process and time for information exchange
- standards for consent
- quality of schedule
- quantified demands

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22
Q

What is a Calderbank offer?

A

More flexible than Part 36 offers
No strict rules and not binding
Advantages - offeror be creative = time, costs, payment
- settle where Part336 not apply = arbitration

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23
Q

What is the Landlord and Tenant Act 1985?

A

Rights and responsibilities on landlord and tenant where lease is less than 7 years
Landlord = repair structure, extension (drains), repair installations (water, gas), repair space heating and heating water
Tenant = clean, not damage, general maintenance (bulbs)

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24
Q

What is the main objective of the Law of Property Act 1925?

A

Facilitate and cheapen land transfer
Section 52 and section 53 relate to conveyance of land in writing through a deed

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25
What is the Party Wall Act 1996?
Enables protection for specific work on adjacent/adjoining land Provides dispute resolution by appointed surveyor
26
What is a party wall?
Wall on land of two or more ownership Part of wall on land of one that separates building of two
27
When is notice not required under Party Wall?
Minor works Non disputive work = plaster, screws, chasing wires
28
What to include in a Party Wall notice?
Name of owner Name of adjoining owner Indication of works Start date Correspondence Description of works Drawings Structural information
29
What is the procedure fr serving notice under Party Wall?
Adjoining owner can - consent within 14 days - consent with conditions - refuse = dispute resolution - not reply = dispute - counter requesting extra works Refuse/no reply = appointing a surveyor Dispute = surveyor route Both must agree
30
What is the Rent Act 1977?
Applies to tenancies created before January 1989 Provides tenant security and right to fair rent
31
What is the Rent Act 1977?
Applies to tenancies created before January 1989 Provides tenant security and right to fair rent
32
What is a Tenancy at Will?
Gives no legal interest in property Both have right to terminate Temporary short term use If the tenant stays after termination it can result in trespass Cricket V Shaftesbury = no security under Tenancy at Will = even if occupation over 12 months
33
What are the components of a Tenancy?
Parties listed in agreement Physical property and fixed to land (not a boat = licence) Terms specified Value of rent specified Exclusive occupation Street v Mountford Features: - payment of rent - fixed term - exclusive possession
34
What a Bare Licensee?
Use/occupy land with permission No legal interest Not transferable Not enforced against third party who acquires property Revocable at will by owner
35
Define trespasser
Enter land/property without permission No consent Intent to trespass
36
What is a contractual licensee?
Licence grants by a contract Right to occupy Revocable/irrevocable in accordance with terms Grants for purpose but not exclusive possession - cinema ticket = contractual licensee
37
What is a periodic tenancy?
Rolling tenancy with no fixed end date AST becomes at end of the fixed term No end till notice served Period depends on intervals of rent payment
38
What is a Tenancy at Sufferance?
Tenancy created when tenancy holds over past end of the period of tenancy Remain past lease expiry Original conditions apply including rent payment Temporary and transitional Opposite to Tenancy at Will whereby tenant occupies with consent but without written contract or lease
39
How can a Tenant apply for a new lease?
Serve section 26 notice asking from a new lease Serve before/after lease end but not 12 months before end date Tenant can apply to court under section 29 once noticed served and landlord has resisted Both desire a new lease but terms not agreed so court determine
40
What are the grounds for landlord to object to a new lease?
Under section 30: A - Tenant failure to repair B - Tenant late paying C - Other breach at courts discretion D - Landlord offer alternate accommodation and cover costs E - Uneconomic subdivision F - Landlord intends to demolish/reconstruct G - Landlord wants to occupy - must own 5 years +
41
Steps for the landlord whereby the tenant does not pay
Formal demand notice = contact the tenant Reach middle grounds = part payment Obtain rent from deposit, guarantor, guarantee Take legal action under common law Take to County Court if 50k+ = then High Court of distress Landlord take tenants possession = limited by statue if tenant is bankrupt. Landlord preferred creditor at liquidation
42
What is forfeiture?
Landlord end lease following tenant breach Landlord take peaceable re-entry/commence proceeding to possess Landlord has right to terminate Tenant allowed to get possessions Must not accept rent during period Law of Property Act 10925 = tenant right to rectify breach
43
What is a section 146 Notice?
Law of Property Act 1925 Landlord intends to forfeit following breach Notice to re-enter or court order in place Failure means landlord open to damages claim Tenant must be informed by: - covenants/conditions - breach - time to rectify
44
What is a section 17 notice?
Former tenant has assigned the tenancy and has an Authorised Guarantee Agreement for benefit of the new tenant Former tenant bound to pay fixed charges = rent, service charges Serviced on tenant/guarantor within 6 months of failing Upon receipt the tenant/guarantor is bound to pay If not served within 6 months, landlord loses their right to pursue
45
What is the compensation to a Tenant for improvements?
Landlord and Tenant Act 1927 Tenant to receive compensation for improvements Tenant must serve notice of intent Provide spec and plan before starting improvements Compensation payable lesser of: - net addition to value of whole as direct result of improvement - reasonable cost for improvement at end of tenancy
46
Define a competent landlord
Landlord and Tenant Act 1954 - 14 months unexpired interest - Freehold or tenant whose lease is not due to expire in 14 months - tenant looking to extend lease - example: sub tenant wants a new 25 year lease but head tenant only has 5 years left - can’t grant as not competent landlord
47
What is an AGA?
Authorised Guarantee Agreement Tenant wants to assign = guarantor to new tenant regarding lease covenants Assignee breach means tenant is responsible for payments
48
What is the difference between guarantor and surety?
Guarantor: - primary liability - independent of obligations by principle debtor to creditor - pay/fulfil obligations to creditor whether principle agreement or not Surety: - contract between creditor, principle debtor and third party = binds on behalf of principle debtor - steps into shoes of principle debtor and pay creditor - none if no principle obligations between creditor and principle debtor - assessor to principle agreement
49
Outline Access to Neighbouring Land Act 1922
Grants access from purpose including - maintenance - clean/repair sewer/drain - fell/remove tree/plant Grant by court if = no unreasonably inconvenient = not suffer interference/disturbance
50
Describe landlord and tenant implied covenants?
Landlord = to allow quiet enjoyment and not to derogate Tenant = pay rent, keep in good repair
51
How does a tenancy request improvement works?
Check lease for provisions Landlord provide consent Tenant provide supporting documents Ok = improve value Reject = appeal Landlord and Tenant Act - consent to alter not withheld - Section 19 of the 1927 Act = tenant alterations - landlord must demonstrate detrimental
52
What are the requirements of Law of Property Act 1989?
Regarding new leases - in writing - terms in one document - signed by both parties - oral agreement if less than 3 years
53
What are the rights to Pre-Emption?
Chance to buy before others Estate to sell, family receive right to purchase Document and register on land registry
54
Assignment v sublet
Assignment = all covenants and obligations to new party Sublet = contract out and control overarching tenancy
55
Language explained…
Fixed term = usual lease Periodic = one period to the next until terminated Statutory = protect by statue (Landlord & Tenant Act 1954 PII) Contracted out = excludes security of tenure Reversionary = rent to lease end or rent review Licence = short term Tenancy at Will = occupied at will of landlord. If 6 months + = lease Tenancy at Sufferance = holding over without consent
56
How to end a protected tenancy?
Landlord under section 25 with section 30 grounds Tenant under section 26 = end current and request new. Tenant leaves vacant possession Tenant under section 27 = tenant not want to continue
57
What is a break clause?
Right to terminate by notice Penalties = conditions = time of essence Investment valuation method - term and revision - increase yield - deter for void period - values may allow for costs
58
How many grounds for the landlord to oppose new tenancy?
Section 25 - landlord: initiate renewal and states terms or serves stating grounds to oppose renewal Section 26 - tenant request new lease 7 grounds: A - breach of repair B - persistent rent delay C - breach of covenant D - landlord offer alternate accommodation E - uneconomic subdivision F - landlord wish to demolish/develop G - landlord wish to occupy
59
When is holding over actioned?
No notice served under 1954 Act by expiry date in the lease. Protected lease continues to run and th tenant holds over
60
What is interim rent?
Rent paid between old lease expiring and new one commencing Application served by either after section 25 or 26 notice and within six months of termination of old tenancy Not serving section 26 prudent tenant not trigger liability Not applicable to contracted out leases
61
What is the role of litigation in Landlord and Tenant relations?
Both parties can apply to county court if the lease renewal cannot be settled by negotiations. Latest to apply is the termination date in the section 25 or 26 notice Claim issued within four months although each can request acceleration Section 64 states new lease commence three months after court order
62
Outline the relevance of the Code for Leasing Business Premises?
Confirms negotiation and terms should seek to achieve fair balance between parties having regard to their respective interests
63
Name two types of offer to settle lease renewals?
Calderbank - without prejudice save as to costs, more flexible than Part 36 as not governed by court rules but costs are at discretion of the court Part 36 - offer under Civil Procedure Rules 1999. If settlement no achieved, it protects offeror’s position on costs. Settlement offer exclusive of costs.
64
What is PACT
Professional Arbitration on Court Terms - type of alternate dispute resolution - ahead of legal proceedings
65
What is section 23 of Landlord and Tenant Act 1954?
Qualification of tenancy protected by the act. B - business purposes O - occupation T - tenancy Tenancy must not be a licence, tenancy at will or an excluded tenancy
66
What is section 28 Landlord and Tenant Act 1954?
Parties can contract out security of tenure 14 day cooling period Or Sworn in front of solicitor within 14days of commencing
67
What is section 40 of Landlord & Tenant Act 1954?
Formal request for information served by either party Gather details about the lease and property
68
What is compensation required after section 30 grounds E, F, G served?
Landlord required to pay disturbance to the tenant Rateable value if occupied for less than 14 years Twice the rateable value if occupied 14 years+
69
What is section 32 Landlord & Tenant Act 1954?
Tenant only entitled to new lease of their holding Part of building occupied for business purpose
70
What are index link rent reviews?
Generally not as popular as open market rent reviews RPI - includes housing costs CPI - removes housing costs Cap and collar - limiter of increases
71
What is litigation?
Process of taking legal action through courts Civil Procedure Rules Public process
72
How to appointment an Arbitrator or Independent Expert?
DRS1 form to RICS
73
Expert witness v independent expert?
Expert witness - third party evidence who will either be acting as Independent Expert or Arbitrator. Award Independent Expert - third party represent both sides and determine new rent. Determination
74
What is a protected tenancy? What qualifies as such?
Protected tenancy under Rent Act 1977 Gives security of tenure and right to fair rent Protects tenants occupation Applies to most tenancies before 15 Jan 1989
75
Stamp duty in commercial property?
LH = Lease premium and NPV of the total rent over the lease term where NPV less than £150k = add together FH = 2% 150k-250k 5% 250,001 +
76
What professional statement governs dilapidations?
Dilapidations 7th edition effective 1 December 2016 Contents: Role of the surveyor Taking instructions Documentation Inspection Schedule of Dilapidations and Scott Schedules (columns to set out views) Dilapidations during the lease term Dilapidations at the end of the lease term Dilapidations claims against landlords Diminution valuations - quantifying landlords damages claim Break clauses Settlement of disputes - negotiations, ADR, litigation Appendix A - Format of a costed Schedule of Dilapidations Appendix B - Format of a Quantified Demand Appendix C - Format of a Response Appendix D - Format of a Scott Schedule Appendix E - Suggested text to send to Landlords to request confirmation of intentions Appendix F - VAT
77
Propose for licence for alterations
Application by tenant Technical review Assessing information supplied Reviewing the licence Monitoring works Review complete documentation