Landlord and Tenant

Question 1

Can you explain how the Landlord & Tenant Act 1954 protects the tenant’s right to renew a lease?

Answer 1

The 54 act provides tenants with security of tenure, meaning they have the right to renew their lease at the end of the term, subject to certain conditions.

Question 2

How does section 25 of the Landlord & Tenant Act 1954 apply in practice

Answer 2

A hostile Section 25, if a landlord wants to terminate a business tenancy at the end of its contractual term they must serve notice on the tenant but must have grounds for termination

A non-hostile s.25 is whereby the landlord is not opposing a new lease - it will contain new proposed terms and time requirements

Question 3

What is the timeframe for a landlord to serve a section 25 notice?

Answer 3

The notice must be served at least 6 months before the termination date but not more than 12 months before.

The termination date specified in the notice cannot be before than the expiry of the contractual lease term.

Question 4

What are the statutory rounds for landlords to oppose a renewal (Section 30)

Answer 4

• Tenants failure to comply with lease obligations e.g breach of covenant or unpaid rent (A)
• Persistent delay in paying rent (B)
• Substantial disrepair (C)
• Alternative accommodation (D)
• Uneconomic sub-division (E)
• Intended redevelopment (F)
• Landlords own use (G)

Question 5

Can you explain to me section 24 of the 54 act

Answer 5

Section 24 establishes the principle that a business tenancy does not automatically end when the fixed term of the lease expires.

Question 6

Can you explain to me section 26 of the 54 act

Answer 6

Section 26 of the Landlord and Tenant Act 1954 deals with a tenant’s right to request a new lease for their business premises.

Notice period is the same as a s.25

If landlord wants to oppose, they must serve a counter-notice within 2 months and state the stat grounds for opposition (From section 30)

Question 7

Can you explain to me section 27 of the 1954 landlord and tenant act

Answer 7

Section 27 of the Landlord and Tenant Act 1954 deals with a tenant’s right to terminate a business tenancy (S.27 = notice to quit)

By serving a notice under Section 27, the tenant avoids the statutory continuation of the tenancy and forfeits their right to request a new lease.

Question 8

What are the notice requirements of a s.27 notice?

Answer 8

The tenant must give at least three months’ written notice to the landlord to terminate the tenancy.

If the tenancy is periodic (e.g., rolling monthly), the tenant must comply with the notice period outlined in Section 27.

Question 9

How do you ensure compliance with the Landlord & Tenant Act 1954 when managing a lease renewal for a client?

Answer 9

I would ensure compliance by adhering to the prescribed notice periods, reviewing the lease’s original terms, and verifying the grounds for renewal or termination.

e.g serving correct notices on time

Question 10

Can you explain to me section 28 of the 1954 landlord and tenant act

Answer 10

Section 28 of the Landlord and Tenant Act 1954 provides clarification regarding situations where agreements have been made to exclude the rights

Question 11

How might a lease be contracted out of the 54 act? What is required

Answer 11

The law requires specific procedures to “contract out” of the Act. For example:

The agreement must be made before the lease is granted.

The tenant must receive a formal notice explaining the implications of contracting out, and they must provide a declaration confirming they understand the consequences.

These safeguards are designed to ensure that tenants cannot unknowingly or unfairly lose their statutory protections.

Question 12

How would you advise a landlord regarding the inclusion of a break clause in a lease agreement?

Answer 12

Break clause offers flexibility for the landlord to terminate the lease early, but it also involves risks.

E.g if tenant has right to exercise break clause this can lead to uncertainty rental income.

Question 13

What is the purpose of rent review provisions

Answer 13

Rent review provisions are important for adjusting the rent in line with market conditions.

They can be calculated in a variety of ways such as

• Indexation
• Current market rent
• Fixed/stepped increase
• Turnover rent review
• Upwards only..

Question 14

what methods of payment are there for a lease

Answer 14

Monthly payments
Quarterly payments
Annual Lump sum
Turnover rent
Direct debit/standing order
Cheque/cash (Less common now)

Question 15

what are the standard quarterly payment dates

Answer 15

25 March (Lady Day)

24 June (Midsummer Day)

29 September (Michaelmas Day)

25 December (Christmas Day)

Question 16

How might interest rates/inflation impact the property market

Answer 16

Interest rates directly links to the cost of borrowing….
Inflation can have a direct effect on the cost of renting or purchasing e.g living costs gone up so cant afford a higher rent or mortgage

Question 17

How would you manage a situation where a tenant has breached the terms of an assured shorthold tenancy agreement under the Housing Act 1988?

Answer 17

I would first review the specific terms of the tenancy agreement to understand the nature of the breach. If the breach is related to rent arrears or other terms, I would initially seek to resolve the issue through communication, providing the tenant with the opportunity to rectify the breach. If the tenant fails to comply, I would advise the landlord on issuing a Section 8 notice,

Question 18

What did the 1988 Housing act introduce regarding tenancies in the private sector

Answer 18

Both assured tenancies and assured shorthold tenancies

Question 19

What did the 1988 Housing act introduce regarding a landlord regaining possesion

Answer 19

Section 21 (No-Fault Eviction):

Section 8 (Grounds for Possession):

Question 20

When can section 8 of the 1988 housing act be used

Answer 20

Section 8 (Grounds for Possession):
Allows eviction during the tenancy if the tenant breaches terms (e.g., rent arrears, anti-social behaviour).

The landlord must specify one of 17 legal grounds for eviction.

Question 21

When can section 21 of the 1988 housing act be used

Answer 21

Section 21 (No-Fault Eviction):
Allows landlords to evict tenants without giving a reason at the end of the fixed term.
Requires at least 2 months’ notice.

Question 22

Can you name some of the main features of the 1988 housing act

Answer 22

• Introduction of Assured tenancies and AST’s
• Allows greater power for landlords to regain possession
• removes rent controls
• succession rights (AT’s not AST’s)

Question 23

Can you name a few of the 17 grounds for eviction under a section 21 notice of the 1988 housing act

Answer 23

• Rental arrears (Court may)
• Illegal subletting (Court must)
• Criminal activity (Court must)
• Persistent late payments (Court may)

Question 24

How would you define market rent

Answer 24

Market Rent is the estimated amount for which a property or premises could be let in the open market, on the date of the valuation, and under normal market conditions.

Question 25

What is a crown tenancy agreement

Answer 25

A lease or rental agreement whereby the landlord is a government entity

Question 26

What are some of the differences between an assured shorthold tenancy and an assured tenancy

Answer 26

- Security of tenure (ast can be ended with a sectio 21 notice) - eviction (AST easier to evict with a section 21 notice) (AT there has to be grounds e.g section 8) - AST's more common in private rental sector - AST's tend to be shorter - AT's rental increase requires tenant consent or more formal process

Question 27

Difference between a licence and a lease?

Answer 27

With a lease the tenant has exclusive posession (Street vs Mountford 1985)

Question 28

What is the difference between a crown tenancy and an AST

Answer 28

Crown Tenancy: Crown tenants do not benefit from the statutory protection of the Housing Act 1988. This means they cannot claim security of tenure under that Act and are subject to the terms outlined in their specific tenancy agreement. Eviction Rights: Crown Tenancy: Eviction procedures are determined by the terms of the tenancy agreement or any relevant common law principles, rather than the statutory process under the Housing Act 1988. Crown Tenancy: Rent levels and deposit protection requirements depend on the individual agreement. Deposit protection rules under schemes like the Tenancy Deposit Scheme (TDS) may not apply. In summary, Crown tenancies operate outside the statutory framework of the Housing Act 1988, while ASTs fall under this Act, providing tenants with specific legal protections

Question 29

can you give me an example of a tenant obligation within a lease

Answer 29

Could be the duty to maintain and repair the premises e.g FRI lease (Tenant responsible)

Question 30

Can you give me an example of a landlord obligation within a lease

Answer 30

Landlord cannot enter the property without proper notice or justification (Right to quiet enjoyment) It ensures the tenant’s right to peaceful possession and use of the property

Question 31

Opposite of an FRI lease?

Answer 31

Internal Repairing Lease (IR lease) or a lease where the landlord retains responsibility

Question 32

Can you explain the process you followed in drafting the deed of variation for the tenant's proposed change of use at the Barugh and Ecclesfield site?

Answer 32

I first reviewed the existing lease to confirm that the intended change of use, from a PPG site to a battery storage facility, was outside the defined permitted use clause. I then liaised with the tenant to understand the scope of the proposed change and its implications for both the tenant and the landlord. I then drafted a deed of variation that included key modified terms, such as a revised rental figure and the opportunity cost premium to reflect the increased potential value of the site

Question 33

What factors did you consider when negotiating the revised rental terms and opportunity cost premium in the deed of variation?

Answer 33

In negotiating the revised rental terms, I considered a few key factors. Firstly, the proposed change of use would likely increase the value of the property due to the higher potential income associated with the battery storage facility I took into account market rates for similar battery sites and the opportunity cost premium was negotiated to ensure that my client, the landlord, was compensated for the potential opportunity they were relinquishing in allowing the change of use.

Question 34

Can you describe the issue you identified regarding the rent payments for the solar farm tenancy, and how you approached resolving it?

Answer 34

The issue identified was that the tenant on my clients land who operated a solar farm was not paying rent in accordance with the lease provisions. Upon reviewing the lease, I discovered that there were three types of rent payable: base rent, notice rent, and revenue rent. The lease stated that the tenant should pay the higher of the base rent or revenue rent, plus notice rent. However, I found that the tenant was paying the higher of the base rent plus notice rent, or revenue rent, which resulted in underpayment when the revenue rent was applicable. I calculated the total arrears, factoring in interest as per the lease provisions, and presented this calculation to the tenant. The tenant acknowledged the mistake, and the arrears were settled through a reconciliation payment.

Question 35

What steps did you take to analyse the rent payments and identify the discrepancy?

Answer 35

I began by reviewing the lease agreement in detail to fully understand the rental provisions, particularly the different rent types and how they should be applied. I then obtained a record of all payments made by the tenant and compared this against the lease terms

Question 36

How did you handle the situation once the arrears were identified, and what was the outcome?

Answer 36

After identifying the arrears, I prepared a detailed breakdown of the amounts owed, including the base rent, revenue rent, and notice rent components, as well as the interest accrued. I then presented this information to the tenant in a clear excel document

Question 37

What was the notice rent part of sundorne?

Answer 37

The notice rent was entered into after the tenant discovered they were unable to develop part of the site for solar equipment. This meant a reduced rate was applicable for this area (£350 per acre on 10 acres)

Question 38

Sundorne solar - How was the base rent calculated

Answer 38

£1,050 per acre per annum (£1,050 x 86.06)

Question 39

Sundorne solar - How was the revenue rent calculated

Answer 39

5% of gross revenue for the period of twelve months before the relevant review date

Question 40

Can you explain the approach you took when the tenant's agents refused to negotiate on the rent and professional fees?

Answer 40

When the tenant's agents refused to pay appropriate professional fees and rejected any rent uplift, I focused on managing the situation diplomatically to ensure my client’s best interests were protected. Recognizing that the negotiation was becoming protracted, I recommended serving a non-hostile Section 25 notice under the Landlord and Tenant Act 1954. This allowed us to formally communicate the landlord’s intention to end the existing lease and propose new terms without escalating tensions.

Question 41

Why did you advise your client to serve a Section 25 notice, and how does it work within the lease renewal process?

Answer 41

I advised my client to serve a non-hostile Section 25 because the tenant was being uncooperative, and it was important to trigger a structured process for negotiating new terms. It also protects the landlord’s position by ensuring they’re following the correct legal procedures for lease renewal.

Question 42

How would you handle a situation where a tenant continuously rejects the landlord’s proposed terms during a lease renewal negotiation?

Answer 42

I would first assess whether there’s any flexibility in the proposed terms that could help bring the tenant to the table. If the tenant remains uncooperative, I would recommend serving a hostile Section 25 notice to formalise the intention of ending the lease Additionally, I would review the market conditions and comparable leases to ensure the terms are fair and market-aligned. In the worst case, the matter may need to be escalated to a tribunal or court to resolve, but that would be a last resort.

Question 43

Can you explain the methodology you used to determine the rent uplift for the residential property at 26 Westminster Close?

Answer 43

I used the comparable method of valuation to assess the rent uplift for the residential property. This method involves analysing the local rental market to find similar properties with comparable characteristics, such as location, condition, and amenities

Question 44

What factors did you consider when selecting the comparable properties for the rent review?

Answer 44

- Location - Recently rental transactions - Size and layout - Condition and age of the property

Question 45

How did you ensure that your rent review advice was in compliance with the Crown Tenancy Agreement for HS2?

Answer 45

For HS2’s residential rent review, I carefully reviewed the Crown Tenancy Agreement to ensure that all provisions were adhered to. This included understanding any specific rent review clauses or requirements unique to the agreement, such as the method of rent determination and timelines for the review process. (2 months notice of rental uplift)

Question 46

Why did you use the comparable method

Answer 46

To obtain a market driven rental figure To gain clear evidence i can put to the tenant Simplicity and practicality