Landlord and Tenant Flashcards
What are the differences between Arbitrator and Independent Expert.
Arbitrator governed by Arbitration Act 1996.
Independent expert uses neutral expert to resolve a specific issue based on their expertise.
Arbitrator is presented evidence. Independent expert does their own research.
Arbitrator not liable for negligence, IE in theory can be.
What is the outcome called for Arbitrator or Independent Expert
Arbitration - Award
Independent expert - Determination
What are the differences in power over cost between an arbitrator or independent expert?
A - Power over all costs
IE - No automatic power to determine cost, depends what lease says.
How do you know if a lease has security of tenure?
Lease will state if the unit is inside or outside the provisions of the Landlord and Tenant Act 1954.
What are the implications to the landlord if a tenant is holding over?
Landlord does not have a secure tenancy.
What is the hierarchy of evidence
- Open market lettings
- Lease renewals
- Rent Reviews
- Independent expert determinations
- Arbitrator awards
- court determinations under l+t acct 1954
- hearsay evidence
- sale & leasebacks
- surrender & renewals
What is included in a Rent deposit deed
Parties, deposit amount, purpose, holding, LL right to withdraw, tenant obligation, deposit return, interest, VAT,
What are the assumptions in a Rent Review clause
The property is vacant.
It would be let for a suitable term
Fit for use
Willing parties
No party in breach of lease
What are the disregards?
Tenant occupation
Any goodwill
Tenant improvements
What if it was a license?
Any effect on rent or additional value because of a license.
What is the structure of a lease?
Parties involved
Description
Lease Term
Rent
Responsibilities and obligations
Remedies for breach
Other clauses
Schedules
What are the main types of Rent Review mechanisms
OMR
RPI RR
Upwards only RR
Stepped Rents
What has to be done for a tenant to do their break clause?
- Tenant has to be up to date on rent
- Not in breach of their lease
- Must be up to date on repair covenant
- Must provide correct notice
What are the 4 requirements of a lease
1 Exclusive occupation
2 Payment of rent
3 Duration for a specified term
4 If more than 3 years, terms must be in writing, signed and registered as a deed
What case law relates to time of
the essence?
United scientific holdings ltd v burnley borough council
What did it mean?
If time is not of the essence it must be specifically stated
What is the maximum term county court can decide upon when deciding a lease renewal
15 years
What is included in a section 25 notice
Name and address of LL + T
Proeprty address
Notice of date to end tenancy
Confirmation if lease is to be opposed or granted
Confirmation of date by which tenant must ask for new tenancy
LL proposals for new tenancy
recommendation to seek prof advice
What is included in a Section 26 notice.
No more than 12 months not less than 6
Notice be in written
Must state tenants proposal for new lease
What case law relates to lease renewals?
Dukeminster limited vs West End
Investments ltd
What are the different types of rot?
Dry and Wet
What is the maximum term County
Court can insist upon when deciding a lease renewal?
15 years
3 instances where a license is appropriate?
Erecting of an advertising board
A right to park a car
A pop up shop, in a shopping centre for instance
What was the L + T Act 1954 last amended?
2004
How is a tenants compensation calculated under the 1954 act?
Rateable value
Less than 14 years is 1xRV
More than 14 years is 2xRV
What is a balance sheet?
A statement of the business financial position and showing its assets an
liabilities at a given date.
What is a Section 30 notice
Sets out 7 grounds for opposition of a new tenancy
What are those grounds?
Breach of repairing covenant
Non payment of rent
Other substantial breach
Provide suitable accomodation
Uneconomic subdivision
Redevelopment
Owner occupation
What is involved in the 3rd party
arbitration process
Agreement to progress to arbitration
Appointment of arbitrator
Evidence presented to arbitrator
Arbitration hearing
The award
What is involved in the 3rd party
independent expert process
Similar to arbitration however independent expert does their own explanations
What is the fee basis for a Rent Review
3-5% of annual rent
What is a section 21?
Section of L and T Act 1987. Relates to AST.
No-fault eviction provision. Allows landlords to regain possession of a property during an AST.
When can a tenant terminate a tenancy?
Break clause
End of term
Surrender the lease
Forfeiture
What is section 23
Application of the act
What is section 24
Security of tenure provisions and
continuation of tenancy (Holding Over)
What is 24a
Interim rent
Define interim rent
Rent payable during period between expiry of current tenancy + start of n
ew lease
What is section 25
Landlords notice to end or seek new
lease
What is section 26
Tenants notice to seek new lease
What is section 27
Tenant notice to end the lease
What is section 28
renewal of tenancy by agreement
What is section 29
Order by court for a new tenancy
What is section 30
Landlords grounds for opposing new
lease
What are sections 32-35
Terms of new lease
What is section 34
Basis of valuation for new rent
What is Section 37
Compensation provisions
What is section 38a
Contracting outside the act
What is section 40
A notice requesting information about either party
What is detailed in section 44
Definitions of a competent landlord
What is the L+T Act 1985
Outlines roles and responsibilities of the Landlord and Tenant
Where would you find information on the hierarchy of evidence?
Comparable evidence in retail estate
valuation
What is included in a heads of terms for a Lease renewal?
Conditions of the lease
What is included in a lease if it is outside the L+T Act
Statutory declaration stating so
What is the primary purpose of ‘Without Prejudice save as to costs?
Provide a party during a dispute some protection against the high costs of dispute resolution.
What dispute resolution offer can be made for a Lease Renewal?
A Part 36 offer under part 36 of the civil procedure rules.
Is there a differently accepted hierarchy of evidence in Rent Reviews in comparison with the categories identified in the RICS professional standard: Comparable evidence in real estate valuation 2019?
Yes - The Handbook of Rent Review (Reynolds and Fetherstonhaugh)
How is a dispute resolver usually appointed?
Leases provide for the appointment.
Via an application to the Dispute Resolution Service (DRS) of RICS
How much does the application usually cost?
£425
What are the 3 grounds on which you can appeal to a high court on the arbitrators decision within 28 days?
- A challenge to the tribunals jurisdiction
- On a point of law
- Serious irregularity
