Landlord and Tenant - L3 Flashcards
(Rent Review Shoreditch) Talk me through the valuation approach for a bar premises? Would you ever adopt a profits approach? If so, do you have any experience or understanding of this approach and when it might be applicable?
I adopted a net effective weighted overall basis as comparable evidence was also valued this way.
I am aware of the Profits Method of valuation and understand that it relates to the trading details of the property will impact the value.
(Rent Review Shoreditch) ‘Nil Increase’ - by this do you mean your opinion of OMV was at or below passing? If below passing, why did you recommend the rent remained at the same level?
The property was over-rented as the market in Shoreditch was suffering as a whole from a change in the pattern of the working week.
The rent review clause stated that the rent was to be reviewed on an upwards only basis.
(Rent Review Shoreditch) Why did you advise your client to issue a Calderbank Offer? What is the impact on cost protection? What does the Calderbank offer include?
To protect my clients cost as third-party as I was confident with my nil uplift and encourage the landlord to come to an agreement.
If the determination/award was in my clients favour then any costs incurred after the date of expiry of the Calderbank offer would be liable to the other party.
Address
Without Prejudice & Save as to Costs
Lease details and parties
Rent payable
Offer expiry
What is the cost for third-party dispute resolution application?
£425 inclusive of VAT to process an appointment
(Rent Review Shoreditch) Why did you request an Arbitrator? What would your advice have been if you had an option?
It stated in the lease that the dispute resolver should act as an Arbitrator.
In this instruction I would have advised an Arbitrator as did not have a tonne of evidence due to the secondary location and if an Independent Expert was appointed they may have uncovered evidence which I was not aware of.
(LR Farnham) How did you know the lease was inside the Act? What are the specific provisions? What is the process for contracting a lease outside the Act?
There was no Landlord and Tenant Act 1954 exclusion by way of statutory or simple exclusion.
Landlord must serve notice on the prospective tenant warning that the proposed lease will not be protected and this is also known as a ‘health warning’.
(LR Farnham) What is included in a S26 notice?
Landlord and tenant details
Property details
Commencement date of new lease
Term
Rent
Break
Alienation
Rights
(LR Farnham) Why did you advise your client to serve the S26 notice with a lower rental value?
To allow room for negotiation.
(LR Farnham) What happens if you cannot reach agreement on terms by the date specified in the notice?
Apply to the courts or for an extension for agreement.
(LR Farnham) How did you convince the LL’s agent to settle at your opinion of OMV? What Zone A rate did this reflect?
Comparable evidence of a retail store which had the same use class and recent transaction date and my proposal was in-line with this.
Reflected £72.30 ZA
(LR Farnham) Would you always approach retail valuations on a zoned basis?
Not always, it depends on how other retail stores have been valued. Generally large stores c. 4,000 sq ft ground floor only may be valued on an overall basis.
(LR Farnham) What did the HOTs state?
Subject to Contract
Landlord
Tennat
Demise
Lease Term
Break option
Rent
Solicitors details
Circulation
(LR Farnham) What is a lease by reference?
Short form agreement which incorporates all the terms and conditions of the former lease and sets out any variations such as the term and rent.
