Landlord and Tenant Flashcards
Tell me about your understanding of the LTA 1927/LTA 1954/Landlord & Tenant (Covenants) Act 1995/LTA 1988?
1927 - The initial legislation, gave protection to business tenants , provided basis for modern dilapidations.
1954 - later expanded granting security of tenure to business tenants.
1988 - expanded on duties on landlords when consent is required for assignment or subletting.
1995 - Introduced automatic release of outgoing tenants from lease covenants unless AGA in place.
what is alienation?
A tenants right to assign, sublet or otherwise transfer.
What are the 3 pillars for a lease?
Rent is being paid consistently
Exclusive Possession
Fixed Term
What is the Regulatory Reform (Business Tenancies) (England & Wales) Order 2003?
It amended the Landlord and Tenant Act 1954 making significant changes to the security of tenure. Allowed landlords and tenants to exclude security of tenure without court approval
What is the role of an expert witness?
In a dispute, provides independent specialist knowledge to assist the court.
How much does it cost to submit an RICS DRS application?
£425 inclusive of VAT
What is the difference between the hypothetical lease at a rent review and lease renewal?
A Hypothetical lease at a rent review is used to determine the market rent whilst assuming the lease continues.
A Hypothetical lease at a lease renewal is used to determine new lease terms considering market conditions, differing lease terms and repairing obligations.
What is PACT?
Professional Arbitration on Court Terms
Joint initiative set up by the RICS and Law Society
A form of alternative dispute resolution.
How do in and out of Court PACT differ?
Out - determined by an expert in the field
In - determined by the court
What is the structure of a rent review clause?
- Definitions
- Assumptions (willing tenant, willing landlord etc, hypothetical lease term)
- Disregards (tenant fitout)
- Hypothetical lease
- Review of Rent
Please can you give me examples of assumptions and disregards within a rent review?
Assumptions - willing tenant willing landlord, open market hypothetical lease terms, lawfully used, tenant has complied with their lease terms
Disregards - tenant fitout, any goodwill attached to the property, statutory restrictions on rents.
When should a section 25 or 26 notice be served under the landlord and tenant act 1954?
between 6 and 12 months prior to lease expiry.
If a tenant served a section 26 notice under the landlord and tenant act 1954, how long does the landlord have to oppose a new lease?
2 months
What’s included in a trigger notice?
Date of notice
parties involved
lease details
proposed review date
state intention
proposed new rent
reference to lease clause
Signature
What is a hypothetical lease?
Its in short made up lease terms as if a new lease were to be written for the same property.
If you were unable to agree a review review, what would you do?
Review lease terms and continue with the mechanisms provided, usually independent expert or arbitrator.
At that point your duty is the the court, not the client.
When rent arear recovery options does a landlord have?
deposit
personal guarantee
CRARS (commercial rent arrear recovery scheme)
Forfeiture
Court proceedings
If tenant of your client exercised their break clause, what would you advise your client.
I would advise that they seek legal advise an ensure that they have issued the break clause notice inline with the lease.
When should a rent review be agreed by?
inline with the lease, but usually time is not of the essence and there for can be agreed after the review date.
what are the two methods of excluding security of tenure from a lease?
Statutory declaration witnessed by an independent solicitor
Simple Declaration, used if tenants sign the lease two weeks after signing the s.38A notice.
How would you carry out a rent review on a building that has both commercial and residential, but the commercial tenant has lease the entire building.
Review rent of the commercial tenant on an FRI basis, but the upper floors repair and maintenance should be given consideration
What is the process of assigning a lease?
Review the lease
Landlords consent
Negotiate terms (deposits, AGA)
Deed of Assignment
Completion
What is the RICS guidance document on Expert witness?
Surveyors acting as expert witnesses 4th Edition.
