Landlord and tenant L1

Question 1

What governs a lease renewal?

Answer 1

The provisions of the L&T Act (1954)

Question 2

What governs a rent review?

Answer 2

The terms of the lease.

Question 3

What is the difference between a lease and a license?

Answer 3

Lease - gives exclusive possession, for a term, at a rent.

License - gives permission to do something otherwise illegal. E.g. to occupy a building. Usually for a period of less than 6 months.

Question 4

What happens at the end of a lease if there is disrepair?

Answer 4

The landlord can serve a breach notice under s.146 of Law and Property Act 1925 and commence forfeiture.

Question 5

What is a Calderbank letter?

Answer 5

Provides a genuine offer to settle on a certain basis. The parties shall bear their own costs and a time limit is imposed for acceptance. Provides flexibility and proves that this is probably the best offer the other side will make.

Question 6

Talk me through a rent review you have been involved in step by step.

Answer 6

x

Question 7

What are the s.30 grounds for possession under the L&T Act (1954)?

Answer 7

1. Breach of repair.
2. Persistent delay in paying rent.
3. Other substantial breach.
4. Suitable alternative accommodation provided (non-fault but no compensation).
5. Uneconomic subdivision (non-fault).
6. Demolition (non-fault).
7. Owner wants to occupy (non-fault, 5-year qualifying period).

Question 8

What is the compensation to tenants if possession is obtained?

Answer 8

Less than 14 years occupation - 1 x RV.

More than 14 years occupation - 2 x RV.

Question 9

Tell me about recent case law involving s.30 of the L&T Act.

Answer 9

S Frances Ltd v The Cavendish Hotel.

Supreme Court determined Landlord did not have genuine intentions to redevelop and ruled in favour of the Tenant.

Question 10

What are the usual assumptions and disregards in a lease?

Answer 10

Assumptions

• Hypothetical Letting.
• Open market.
• Wiling L and T.
• Fit for immediate occupation.
• Vacant Possession.

Disregards

• Tenant’s occupation.
• Rent-free period or fitting out.
• Goodwill.
• Tenant’s improvements, where consent obtained.

Question 11

Tell me about a rent review case.

Answer 11

x

Question 12

Which lease clauses affect value?

Answer 12

1. Break Clauses.
2. Penalties.
3. Alienation.
4. Alteration.
5. Repair.
6. Rent Review.
7. Use Clause.
8. Disputes procedure.

Question 13

What are three types of dilapidations schedule?

Answer 13

1. Terminal.
2. Interim.
3. Final.

Question 14

Tell me how tactics can affect service of notices in a lease renewal?

Answer 14

x

Question 15

When is time of the essence in a rent review?

Answer 15

Rarely - unless it is specifically stated to be in the rent review clause.

Question 16

What is the first thing you would do in dealing with a rent review?

Answer 16

1. I would carry out a conflict check on the prospective client.
2. I would issue ToE for signature.
3. I would read and summarise the salient points of the lease.