Landlord and Tenant Flashcards
What is the structure of a commercial leases?
(DPDIPOS)
Date
Parties involved
Definitions
Plans
Operative Clauses
Signatures
What are the sections of the Landlord and tenant Act that apply to the landlord and tenenat relationship
Section 24-28
24 - Holding Over
25 - New lease or oppose new lease (friendly or hostile notice).
26 - Tenants request for a new lease
27 - Tenant notice not to renew
28 - Renewal by agreement
29 - Court order for renewal
30 - grounds for opposing a new lease.
What is included within a rent review clauses?
Definition
Assumptions
Disregards
Hypothetical lease
Basis of rent review
How is a rent review instigated?
Trigger notice usually by a landlord.
What rent area options does a landlord have?
Commercial rent arear recovery
Court proceedings
Statutory demand
Guarantor
Deposit
Forfeiture
What grounds under section 30 of the landlord and tenant act are there to oppose a new lease?
Non payment of rent
Breach of repairing covenant
Substantial breach of any other condition of the lease
landlord find suitable alternative accommodation
uneconomical subletting (no fault)
landlord own use (no fault)
redevelopment (no fault)
Compensation is 1x rateable value for 14 years of occupation or less and 2 x rateable value 14 years +
How many years does a landlord have to of owned a commercial property before using section 30 of the Landlord and Tenant act oppose a new lease.
5 years
Can you explain the steps you took in renewing the lease for the retail unit on Silver Road?
After inspecting the property and agree terms with the client, I initially reviewed the lease and compiled a report with my recommendations to the client. I sent a letter to the tenant expressing the landlords desire to agree a new lease.
What key information did you include in your report to your client regarding the lease renewal at silver road?
Summary current lease terms and obligations, if the tenant did not want to renew what steps should be taken, schedule of dilapidations and marketing strategy.
Advise on market rent.
What comparable evidence did you consider in your analysis of market rent at Silver Road, and how did you ensure it was reliable and relevant?
Looked at the comparable properties, was it similar in size, location condition and lease terms. How long ago did the transaction take place.
How long after a tenant’s lease expires do they obtain security of tenure?
6 months
How did you initiate negotiations with the tenant at Silver Road, and what approach did you take to ensure both parties were satisfied with the terms?
I provided market evidence to support the market rent i was proposing. I also made the tenant aware that he was able to engage a surveyor to act on his behalf. Given the rent was not changing, there was no problems.
How did you ensure that the lease renewal at Silver complied with relevant legislation, even though the tenant was not under the 1954 Act?
Check the current lease to check lease renewal provisions
I carried out Anti-money laundering checks regulations.
Ensured the property complied with Health and safety regulations to ensure the property met all requirements.
Documented everything in writing.
In the event of any disagreements or disputes, how would you have handled them to ensure a smooth renewal process at Silver Road?
Clear communication
Approach negotiations diplomatically, understand concerns .
Use of mediation if direct negotiations are unsuccessful.
Obtain legal advice.
What factors did you consider when determining the open market rental value 99-101 unthank road?
I assessed the lease agreement.
What methods can a landlord use to trigger a rent review?
Tigger notice / Rent Review Notice
What type of comparable evidence did you rely on for your rent review on Unthank Road, and how did you adjust for differences?
Rent and similar transactions, open market evidence in relatable location.
I worked our the ITZA for comparable evidence
How would you approach valuing a unit with limited comparables?
Expand the search
Adjust for difference, size condition footfall, lease terms etc
Look at market trends
What is a rent review memorandum, and why is it important?
Its a formal document recording the agreed revised rent.
Provides legal clarity
Lease compliance
Ensure it is signed by all parties
What are the implications of backdating the revised rent to the contractual review date?
Arrears Accrual
Financial impact on the tenant
Interest charges
Legal clarity
what is the Arbitration Act 1996
It governs arbitration proceedings, a legal framework for resolving disputes.
What is required to instigate a rent review?
Conflicts of interest checks
Terms of Engagement
AML checks
Client objectives
Copy of existing lease
What’s enclosed in a rent review memorandum?
Names and Addresses
address of property
agreed rent
date
signatures
What is a tenancy at will?
A form of licence, creted by a written agreement for an unspecified term.
what’s are the different basis of rent review valuations?
Open market rent
Index linked
fixed stepped rents
What is the national term of the lease?
The length to be valued
What is the hierarchy of evidence when it comes to rent reviews?
OML
RR/LR
Independent determinations
Arbitrator
Court
Sale and Leaseback
Surrender and renewals
Inner company arrangements
what are the different types of 3rd party determinations?
Independent expert
Arbitrator
Expert Witness
What does the LLandT 1954 Act Exclude?
Residential
Agricultural leases
What part of the LLandT 1954 Act govens lease renewals for leases outside of the Act
S38 - A
What are the various ways to terminate a lease?
Forfeiture
Surrender
Merger
Break Clause
Lease expiry
