Landlord and Tenant

Question 1

Tell me about an instance of when you have reflected market conditions on rental value?

Question 2

How do you collate, analyse and adjust comparable evidence?

Answer 2

Collation - ringing local rural agents for rental
Collated into a table & ranked in order of similarity
Location, type (grass/arable) size, access, boundaries, services, surrounding land use

Question 3

What is the hierarchy of evidence?

Answer 3

• direct comparables
• General market data (averages)
• Other sources (interest rates, transactional evidence from different real estate types)

Question 4

Tell me about a landlord and tenant negotiation you have been involved with?

Answer 4

served s10 notice on behalf of LL, approached tenant and suggested an increase of £15/acre, based off comparable evidence, tenant was a veg grower but provided evidence that areas cannot be used for veg so was down to combinable crop therefore rent high on those areas so agreed to meet in middle at £7/ac. client happy

Question 5

Tell me about a contracted out lease renewal you have dealt with.

Answer 5

Have drawn up Heads of Terms for lease including contract out of LL & T act then advise solicitor draw up formal lease

Question 6

What sections do you contract out of LL & T 1954?

Answer 6

s 24 - 28

Question 7

How would you advise a tenant differently between a contracted in and our renewal?

Answer 7

Better security of tenure rights for tenants, reduction in rent

Question 8

Tell me about Notice of Creation

Answer 8

section 1(4) confirms a tenants intention to create an fbt & it remain one with landlord must be signed prior to signature of fbt

Question 9

Tell me about section 6 notices in relation to AHA tenancies.

Answer 9

Gives tenant the right to ask Landlord for a written tenancy

Question 10

How can you bring an AHA tenancy to an end?

Answer 10

unqualified notice (no reason required - T must counter serve within one month to stop it)
qualified notice - under 8 grounds as set out in section 3 i.e. needed for non ag use, tenant hits retirement age, irremediable breach, insolvency, breach of conditions

Question 11

What is a case B notice (AHA)?

Answer 11

Land needed for non ag use.

Question 12

Tell me about the process of making a succession application.

Answer 12

• within 3 months of tenants death
• eligibility - spouse, civil partner, child sibling
• suitability/elgibility

Question 13

What types of agricultural tenancies are there?

Answer 13

FBT
AHA

Question 14

Would you as a farming tenant prefer an FBT or an AHA?

Answer 14

AHA - security of tenure, fair rent

Question 15

How do rent reviews work with AHAs?

Answer 15

either landlord or tenant can request review
if cant be agreed goes to arbitration/3rd party determination
can only happen once every 3 years
rent based off comps and income earning capacity of the holding.
SECTION 12 NOTICW

Question 16

Serving a NTQ
Describe the plot of land.

Answer 16

3 acre grass field, seperate from rest of holding. good roadside access adj to a resi estate & not in green belt

Question 17

Talk me through your due diligence on the the lease terms and ability to serve a notice.

Answer 17

• checked type of tenancy (was in a rolling yr - yr) so no termination provisions required although there was some in orignal term
• check term date, to ensure i was serving before 12 month anniversairy
• check any break clauses

Question 18

What did you do to comply with best practice for serving a NTQ?

Answer 18

• Check tenant address
• 1st class signed for stamp
• followed notice up with a telephone call to Tenant to explain.

Question 19

Preparation of a FBT
How did you calculate the market rent?

Answer 19

Comparable evidence

Question 20

Preparation of an FBT
What was the market rent you calculated?

Answer 20

I advised a rent of £110/ac

Question 21

Detail a lease term you negotiated with reference to why it was agreeable?

Answer 21

2 year term - landlord didnt know if they were going to take the land back in house at a later date so wanted that flexibility.
tenant was also agreeable as it was further away from main holding so wasnt unsure about travel time and if it was economically sustainable long term

Question 22

Preparation of a FBT
How does the Legal Services Act 2007 apply to the work you carried out for this client?

Answer 22

because the type of tenancy only allows accredited land agents to prepare deeds of surrender

Question 23

Did you undertake any actions with the proposed new Tenant prior to entering the new FBT?

Answer 23

AML checks
service on a notice of creation section 1(4)