Landlord and Tenant - L1

Question 1

What information do you require from the client at commencement of the instruction?

Answer 1

Agreed ToE
Understanding of client’s objectives and strategy
A copy of existing lease and any other supporting information
Copies of any licences
Copy of RRM
Contact details of landlord/tenant to arrange inspection
Confirmation of which party will be responsible for the services of notices
A copy of property management file
Details of any comparable rental evidence relating to a similar property held by the client

Question 2

Fees for rent reviews or lease renewals can be based upon what?

Answer 2

1) A fixed fee
2) Incentivised fee
3) An hourly rate

Question 3

What does ‘Without Prejudice’ mean?

Answer 3

During the period of negotiations the opposing party can’t rely upon any document/discussions held which are labelled ‘Without Prejudice’ in litigation

Question 4

What is the case law surrounding the difference between a lease vs a licence?

Answer 4

Street Vs Mountford (1985)

Question 5

What is a licence?

Answer 5

A right to enter a property
A personal arrangement between the licensors and licensee
Requires no interest in the property

Question 6

What are the requirements of a lease?

Answer 6

1) Exclusive occupation
2) Payment of rent
3) Specified term
4) If more than 3 years, the term must be in writing signed as a deed

NB - If exclusive possession is granted of a defined area for over 6 months it is likely to be a lease

Question 7

What are the differences between a lease and a licence?

Answer 7

1) Lease provides an occupier with an estate in the relevant land whereas a licence is a permission to make it lawful for them to use the land
2) A lease can be assigned - a licence is normally a personal right
3) A lease can’t be terminated until it expires, unless there is a break clause. A licence can usually be revoked at any time

Question 8

What is a tenancy at will?

Answer 8

A form of licence created by a written agreement for an unspecified time in which the landlord may evict the tenant at any time. It is not a legal interest in the land and has no renewal right

Question 9

What are the grounds where a landlord can oppose a new lease?

Answer 9

a) breaching a repairing covenant
b) persistent delay in rent payments
c) other substantial breach
(a-c) fault-based grounds
d) provide suitable alternative accommodation
e) uneconomic subdivision (compensation payable)
f) demolition or reconstruction (compensation payable)
g) owner occupation (compensation payable)

Question 10

When is compensation payable on the grounds of opposition?

Answer 10

a-e discretionary and the courts will decide if reasonable
f-g mandatory

(f) Redevelopment - landlord must prove intention
(g) Owner occupation - landlord must have owned property for 5 years and prove intention to occupy

Question 11

What is S.24 of the Act?

Answer 11

A tenant whose lease has expired but they remain in occupation is said to be ‘holding over’. S.24 covers continuation tenancies.

Question 12

What is S.25 of the Act?

Answer 12

Landlord’s notice served with a date not more than 12 months and not less than 6 months before the date for the termination of the tenancy to be specified.

Question 13

What is a non-hostile and hostile notice?

Answer 13

Under S.25 a non-hostile notice is where the landlord is prepared to grant a new lease and the proposed terms of the new lease must be stated to include the new rent.

A hostile notice is where the landlord opposes a new lease and the grounds of opposition must be stated.

Question 14

When would a tenant lose security of tenure?

Answer 14

If you undertake lease renewal negotiation and you pass the date for a new lease/termination as stated in the S.25/26.

It is lost unless:
1) there is a new lease in place
2) either party has applied to court
3) the parties have agreed in writing to an extension of the deadline to apply to court for a new tenancy

Question 15

What is included in a S.25 notice?

Answer 15

Name and address of landlord and tenant
Address of the property
Notice of the date to end a tenancy
Confirmation of whether a new lease is being granted or opposed
Confirmation of the date by which the tenant must ask the court for a new tenancy
Proposed rent
The grounds for opposition

Question 16

What is a S.26 notice?

Answer 16

Tenant serving notice requesting a new tenancy not more than 12 months prior to expiry

Question 17

If the landlord opposes a S.26, when should the counter notice be served by?

Answer 17

Served within 2 months of the S.26

Question 18

What is a S.27 notice and a S.27(1) and S.27(2)?

Answer 18

S.27 - when the tenant does not want the lease to continue beyond the original fixed term.

S.27(1) - tenant giving the landlord at least 3 months’ notice that they are intending to vacate.

S.27(2) - if the tenant wishes to vacate once they are holding over, notice must be served upon the landlord and give at least 3 months’.

Question 19

Under what section does the landlord opposing a new lease fall under?

Answer 19

Section 30

Question 20

What does S.24(A) say?

Answer 20

Mechanism for tenants to serve a notice to request a new lease even if they have not yet formally made a request under S.26. Tenant may serve during the last year of their existing lease if they are not yet in the period where a S.26 notice can be served.

Question 21

Talk me through some of the key provisions of the Landlord and Tenant Act 1954?

Answer 21

Gives the tenant the right to renewal at the end of a lease

Question 22

What is section 24(A) of the Landlord and Tenant Act 1954?

Answer 22

An application to the court to determine a rent (interim rent) which the tenant is to pay while the tenancy continues. Court may order payment of an interim rent in accordance with section 24C or 24D of this Act.