Landlord And Tenant Flashcards
What is interim rent?
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
Types of dispute resolution?
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
What are rights to new tenancy?
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
Outline sections from Landlord and Tenant Act 1954
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)
What are the notices under Landlord and Tenant Act 1954?
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
How to manage a rent review?
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
Is time of the essence?
Not usual but check the lease
Basis of requirements within lease
What assumptions during rent review?
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
What to disregard during a rent review?
Tenant occupation
Rent free
Goodwill
What is a part 36 offer?
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
Why use a Part 36 offer?
Tempting if offer settle and pay costs
Why use a Calderbank offer?
Flexible
Best offer being genuine and cost at risk if wrong
Not governed by strict rules
What is arbitration and independent expert?
Arbitration = discretion over costs and account conduct
Independent expert = no authority to award costs, depends on agreement of parties
What are dilapidations?
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
What is a breach to repair notice?
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
What is section 18 of Landlord and Tenant Act 1927?
Damages for a breach of a covenant or agreement to keep or put premises in repair
Compensation limited to diminution value
What act govern landlord and tenant relations?
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
What is the Code of Leasing Business Premises 2020?
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
Outline example case law
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
What is a break clause?
Landlord or tenant right to terminate lease
- vacant possession
- issue in prescribed format
- compliant with lease obligations
What is pre action protocol?
Conduct court expect from both before escalation
Process and time for information exchange
- standards for consent
- quality of schedule
- quantified demands
What is a Calderbank offer?
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
What is the Landlord and Tenant Act 1985?
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)
What is the main objective of the Law of Property Act 1925?
Facilitate and cheapen land transfer
Section 52 and section 53 relate to conveyance of land in writing through a deed
What is the Party Wall Act 1996?
Enables protection for specific work on adjacent/adjoining land
Provides dispute resolution by appointed surveyor
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
When is notice not required under Party Wall?
Minor works
Non disputive work = plaster, screws, chasing wires
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
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
What is the Rent Act 1977?
Applies to tenancies created before January 1989
Provides tenant security and right to fair rent