Landlord and Tenant Act 1954 Flashcards
What rights does the Act Guarantee for a business tenant in occupation?
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
What options does a landlord have to let a property on a short term basis?
Lease
License to Occupy
Tenancy at Will
What is a lease?
a contractual agreement for exclusive occupation of a property for a fixed term.
What is a license?
landlord grants a tenant permission to use the property or land for a
specific purpose.
Whats the difference between a lease and a license?
exclusive possession.
A license does not create a legal interest and therefore cannot be assigned to another party.
Why choose a license over a lease?
Licenses provide more flexibility and a higher degree of simplicity, both parties can generally terminate on short notice. Lower legal fees.
Whats similar about a Tenancy at Will and License?
Neither create a legal interest.
When is a Tenancy at Will appropriate?
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.
Whats the difference between a lease renewal and a rent review?
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.
What is a Section 25 notice?
This notifies the tenant that the lease is coming to an end.
Whats in a Section 25 Notice?
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
By the deadline in the section 25 notice, what needs to have happened?
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.
What is section 26?
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.
What is a Section 27 notice?
T wants to end lease, cannot be within 3 months of lease end.
What is a Section 28 notice?
T gets a new lease, but that lease loses the protection of the Act.
What is a Section 29 Notice?
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
What is a Section 30 notice?
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)
What is a section 31 notice?
L successfully opposes a new tenancy through the courts.
What is a Section 32 notice?
Property to be comprised in the new tenancy
What is a section 33 notice?
Court has the power to grant a new lease, not for more than 15 years.
What is Section 34?
Assumptions to be made the and matters to be disregarded in assessing the rent under the new tenancy
What is section 35?
Court will have regard to old tenancy and all relevant circumstances
What is Section 36?
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.
What is Section 37?
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.
What is a section 38?
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.
Section 39?
Saving for compulsory acquisitions
What is a section 40?
Duty to give information.
can request within final 2 years of term. such as sub tenants or superior landlords.
What is section 41?
Whats the process for dealing with an assignment or a sublet?
*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.
What does Privity of Contract mean in an assignment?
That the T is always on the hook for obligations under the lease even if its been assigned or sublet
What was the purpose of the Landlord and Tenants Covenant Act 1995
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
What are the grounds for refusal under the Landlord and Tenants Covenants Act 1995?
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
Some examples of what might allow a landlord to forfeit the lease…
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
How would the landlord initiate a forfeiture?
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)
When can you serve and interim Schedule of dilapidation? and final?
When there is more than 3 years left on the term. When there is less than three years left.
When is a schedule of condition usually appropriate?
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.
A legal case relating to the validity of break notices?
Osborne Assets Ltd v Britannia Life Ltd [1997]. 2 coats of paint rather than 3. Break ineffective.
How would you serve a break notice?
- Under section 196 of the law of property act 1925.
By hand
By registered post
By personal agent
