Landlord And Tenant Flashcards
What actions are required by a surveyor for lease renewal?
Check CoI Agree ToE Understand clients objectives Get information Read information Check time Inspect and measure MR valuation Prepare report Agree strategy/ who serves notices Open negs Conclude negs Instruct lawyers to prepare new lease Submit invoice
What actions are required by surveyor on a rent review?
Check CoI Agree ToE Understand clients objectives Get information Read information Check time Inspect and measure MR valuation Prepare report Agree strategy/ who serves notices Open negs (3rd party determination) Conclude negs Submit invoice
What are the assumptions of a rent review?
Available on open market
VP
Fit for immediate occupation
Enjoyed period for fitting out
What are the usual disregards in a rent review
Goodwill on tenants occupation
Goodwill attached to the property
Tenant improvements if consent granted
What are the basis of valuation in a rent review?
Upwards only
In line with RPI
What does the code of leasing business premises say about rent reviews?
Clear clause
Headline rent not to be used
LL or T able to start it
What’s a Calderbank Offer
Can achieve an early resolution to dispute
Without prejudice save as to cost
Loosing party to pay costs
Offer to include time limit (usually 21 days)
Must be genuine
What is the hierarchy of evidence in a rent review?
Open market transaction LR + RR Independent Expert Arbitrator Court determination Hearsay Sale and leaseback Surrender and renewal Inter-company arrangements
How is the third party determination decided?
Read the lease
What is the cost of a third party determination application and who do you apply through?
Apply through President of RICS
£395 plus VAT
Tell me about arbitrators
Members of the chartered institute of arbitrators
Acts on evidence submitted
Has the power to disclose
Right to appeal through high court on point of law
Not liable of negligence
Acts in accordance with Arbitration Act 1996
Outcome called Award
Tell me about independent experts
Has a duty to investigate Can use own knowledge Has no power to disclose No right to appeal Can be liable Outcome called a determination
What is an advocate?
Represents their client in court
Only has to disclose what they with to
Acts in best interest of client
Must act with integrity
What is an expert witness
Must be impartial
Duty is to the court
Evidence must be work of the surveyors
RICS Practice Statement - surveyors acting as expert witnesses 2014
What’s in a rent review memorandum?
Name of LL and T Address of property Date of lease and RR New agreed rent Signed and dates by both parties
Can also be recorded by:
Independent experts decision
Arbitrators award
Written acceptance of Calderbank offer
What are the surveyors fees based on for a rent review
% saved % agreed Hourly Fixed Incentive
What are the main sections of the 1954 Act?
23 - application to T 24 - security of tenure provisions and continued tenancy - holding over 25 - LL Notice - end or new 26 - T notice for new 27 - T notice to end 28 - renewal of tenancy agreement 29 - order by court - new 30 - LL ground of opposition 32-35 - terms of new lease 37 - compensation 38A - contracting out 40 - notice requesting info on LL/ T 44 - Definition of competent LL
What does a tenant have to ensure in order keep protection?
Is a tenancy Used for business Occupy part Occupy more than 6 months Must not be exempt or excluded (tenancy at will/ services tenancy) Competent LL
How does a LL request new tenancy and what must the notice comply with?
Serves 6-12 month before stated exp date Given by competent LL For whole premises State date of determination In proscribed form and inform T of rights Friendly - propose new terms Hostile - state ground of opposition
What must a S25 notice include?
Name and address of LL & T Address of property Date to end tenancy New lease opposed/ granted Response date New terms/ grounds of opposition Recommend professional advice
How is a S.26 notice served?
6-12 months before before requested new date
In proscribed form
New terms
How does a protected tenant terminate lease?
Either by vacating at expiry
Or
Serving a S.27 notice giving 3 months notice after expiry date
What grounds does a landlord have to oppose a new lease?
a) breach of repairing covenant
b) persistent delayed payment of rent
c) other substantial breach
d) provide suitable alternative accommodation
e) uneconomical subdivision
f) demolition or reconstruction (prove funding, planning, substantial work and necessity to gain VP)
g) owner occupation (owned 5+ years)
A-E decided in court
F-G mandatory
1954: what case heard that LL is entitled to oppose new lease or redevelopment grounds even where the redevelopment is devised solely for evicting the tenant
S. Franses LTD v The Cavendish Hotel (2017)
Being appealed
S.Fransis v Cavendish Hotel
LL entitled to refuse new tenancy on the grounds of refurbishment even if it is solely to evict the tenant
1954: what case related to competent LL wanting to occupy building for own use?
Frozen Value v Heron Foods
LL must have been competent for previous 5 years otherwise clock resets
Under the 1954 Act, when is a T entitled to compensation?
Grounds E-G
< 14 years = 1x rateable Value
> 14 years = 2x rateable Value
How does a LL contract out of the act?
Under S.38A
Serve a health warning
T must then make deceleration in response confirming that he has received the notice and accepts terms
Simple deceleration - at lease 14 days prior to committing tot the lease
Statutory declaration - less than 14 days (must be signed in front of independent solicitor)
1954: what case is about a landlord opposing to new tenancy used redevelopment grounds only to change his mind after tenant had found new space at higher rent? And what was the out come?
Inclusive Technology v Williams (2009)
Court found that landlord should have informed T of decision not to redevelop and had to pay difderence in rent
How long a lease can court grant a new tenant?
15 years
What act must arbitrators follow?
Arbitration Act 1996
What does without prejudice mean?
Used for rent reviews
During the period of negotiations, the opposing party can not rely upon any document or discussions held which are labelled with out prejudice
What is a licence?
A licence passes no interest in land but only makes lawful what would otherwise be unlawful - Murdoch 1998
- a right to enter a property
- 3 years max
- serviced office
What is a lease?
A lease provides an occupier with an estate in the relevant land.
What are the four requirements of a lease?
- exclusive occupation
- payment of rent
- duration of a specific term
- if more than 3 years the terms must be in writing, signed and registered as a deed
What is a tenancy at will?
Form of licence created by written agreement for an unspecified time
Not an interest in land
Used for allowing a T early access for fitting out
What is a wayleave?
A temporary right and recives an annual payment
Can not be transferred to a new owner
What is an easement?
A permanent right and receives capital payment
Can be registered with land registry
Uninterrupted use over 20 years
Right of way
What act deals with landlord consent to alienation not to be unreasonably withheld or delayed and what is the penalty?
Landlord and Tenant Act 1988
Claim for damages
What is an AGA?
Authorised Guarantee Agreement
L+T Act 1995 abolishes probity of contract and introduced AGAs for the most recent former tenant
Code of leasing businesses states that AGAs should not be unreasonably requested but only used when new tenant is of a worse covenant strength
What is the LTA 1995?
Abolished probity of contract and introduced AGAs
What is the LTA 1927?
It deals with landlord consent for license for alterations
S.19 imposes that consent can not be unreasonably withheld.
What do you serve when requesting reinstatement?
A 146 notice in accordance with the 1925 Law of Property Act
