Landlord and Tenant Act 1954

Question 1

What rights does the Act Guarantee for a business tenant in occupation?

Answer 1

the right to know the identity of their
landlord,

the right to a written tenancy agreement,

protection against unfair eviction,

the right to occupy a property that is reasonably maintained and fit for habitation

Question 2

What options does a landlord have to let a property on a short term basis?

Answer 2

Lease
License to Occupy
Tenancy at Will

Question 3

What is a lease?

Answer 3

a contractual agreement for exclusive occupation of a property for a fixed term.

Question 4

What is a license?

Answer 4

landlord grants a tenant permission to use the property or land for a
specific purpose.

Question 5

Whats the difference between a lease and a license?

Answer 5

exclusive possession.
A license does not create a legal interest and therefore cannot be assigned to another party.

Question 6

Why choose a license over a lease?

Answer 6

Licenses provide more flexibility and a higher degree of simplicity, both parties can generally terminate on short notice. Lower legal fees.

Question 7

Whats similar about a Tenancy at Will and License?

Answer 7

Neither create a legal interest.

Question 8

When is a Tenancy at Will appropriate?

Answer 8

Tenant needs immediate access to the property whilst the lease is still being drafted.

TAW must be drafted correctly to avoid security of tenure under 1954.

Question 9

Whats the difference between a lease renewal and a rent review?

Answer 9

a lease renewal is a Statutory Procedure: Part II Landlord and Tenant Act 1954.

a rent review is a contractual procedure setteled according to the lease.

Question 10

What is a Section 25 notice?

Answer 10

This notifies the tenant that the lease is coming to an end.

Question 11

Whats in a Section 25 Notice?

Answer 11

The landlord, the tenant and the property (notice is served on the tenant, not on the property)

the date of the notice

the date of the termination of the tenancy

Question 12

By the deadline in the section 25 notice, what needs to have happened?

Answer 12

Have agreed and completed a new lease with the landlord

Have agreed an extension of the notice deadline in writing with the landlord

Issued court proceedings asking for a new lease and a decision on its terms.

Question 13

What is section 26?

Answer 13

Tenant requests a new lease. Served between 6 and 12 months before lease end.

L must object to new tenancy within 2 months of notice.

Question 14

What is a Section 27 notice?

Answer 14

T wants to end lease, cannot be within 3 months of lease end.

Question 15

What is a Section 28 notice?

Answer 15

T gets a new lease, but that lease loses the protection of the Act.

Question 16

What is a Section 29 Notice?

Answer 16

T must apply to Court before expiry of S25 or 25 or loses security
* L & T may agree to extend the date for Court Application: Section 29(B)
* L can also apply to Court

Question 17

What is a Section 30 notice?

Answer 17

7 grounds that a landlord has to object to a new tenancy.

a) T failed to carry out repairs

b) Persistent delay in paying rent

c) Other substantial breach

d) L offers suitable alternative accommodation

e) Uneconomic sub-letting

f) L wishes to demolish or reconstruct

g) L wishes to occupy (must have been L for at least 5 years)

Question 18

What is a section 31 notice?

Answer 18

L successfully opposes a new tenancy through the courts.

Question 19

What is a Section 32 notice?

Answer 19

Property to be comprised in the new tenancy

Question 20

What is a section 33 notice?

Answer 20

Court has the power to grant a new lease, not for more than 15 years.

Question 21

What is Section 34?

Answer 21

Assumptions to be made the and matters to be disregarded in assessing the rent under the new tenancy

Question 22

What is section 35?

Answer 22

Court will have regard to old tenancy and all relevant circumstances

Question 23

What is Section 36?

Answer 23

L bound to grant new lease on terms set by the court. T can have court order revoked within 14 days but the tenancy will continue for a reasonable period until the property is re-let.

Question 24

What is Section 37?

Answer 24

Compensation where a tenancy is not granted under the no fault grounds of the act.

2 x rateable value if T in occupation for 14 years or more
1x rateable value is less than 14 years.

Question 25

What is a section 38?

Answer 25

To contract out of the Act. if served within 14 days of lease start T must sign a statutory declaration. If more than 14 days, simple declaration.

Question 26

Section 39?

Answer 26

Saving for compulsory acquisitions

Question 27

What is a section 40?

Answer 27

Duty to give information. can request within final 2 years of term. such as sub tenants or superior landlords.

Question 28

What is section 41?

Question 29

Whats the process for dealing with an assignment or a sublet?

Answer 29

*Check the Lease – is Assignment / sub-letting permitted? *Get an undertaking for your costs and the legal costs *Request financial information on the proposed assignee / sub-tenant *Understand what the proposed assignee / sub-tenant’s business plan is *Are there any grounds for refusal? *Is the tenant prepared to offer a guarantee / enter into an Authorised Guarantee Agreement.

Question 30

What does Privity of Contract mean in an assignment?

Answer 30

That the T is always on the hook for obligations under the lease even if its been assigned or sublet

Question 31

What was the purpose of the Landlord and Tenants Covenant Act 1995

Answer 31

i) Effectively removed Privity of Contract ii) Came into effect on 1st January 1996 iii) The assignor of the whole premises is removed from obligations under Section 5 iv) Section 16 however allows the L to guarantee the ‘performance’ of the assignee v) This is known as an Authorised Guarantee Agreement vi) The Assignor is ‘released’ at lease expiry or subsequent assignment

Question 32

What are the grounds for refusal under the Landlord and Tenants Covenants Act 1995?

Answer 32

Reasonable grounds for refusal must relate to the character of the proposed assignee, the effect on rental or capital values Ls usually look for Ts profits to exceed 3 x the annual rent and other payments due under the lease

Question 33

Some examples of what might allow a landlord to forfeit the lease...

Answer 33

Tenant’s failure to pay rent; a change of use without permission; failing to repair the Property in accordance with the Lease; allowing a third party to occupy

Question 34

How would the landlord initiate a forfeiture?

Answer 34

L must give notice under Section 146 of the Law of Property Act 1925 specifying the breach requiring T to remedy the breach (if it is capable of remedy)

Question 35

When can you serve and interim Schedule of dilapidation? and final?

Answer 35

When there is more than 3 years left on the term. When there is less than three years left.

Question 36

When is a schedule of condition usually appropriate?

Answer 36

when the property is in poor condition and the tenant seeks to limit the repairing liability. - must be agreed, signed by both parties and attached to the lease.

Question 37

A legal case relating to the validity of break notices?

Answer 37

Osborne Assets Ltd v Britannia Life Ltd [1997]. 2 coats of paint rather than 3. Break ineffective.

Question 38

How would you serve a break notice?

Answer 38

1. Under section 196 of the law of property act 1925. By hand By registered post By personal agent