Landlord and Tenant Level 1

Question 1

What is LTA 1954?

Answer 1

Landlord and Tenant Act 1954, lots of protection for tenants as well as landlords. Requires sending of specific notices.

Question 2

What is Common Law?

Answer 2

Term used in the CPD webinars, covers unwritten laws not formally written down but do set precedents

Question 3

Give me an example of your knowledge of current property law.

Answer 3

Rights and responsibilities of owners, landlords, tenants and other parties relating to the property. L&T 1954.

Question 4

Describe how a commercial lease is set out and the typical component parts.

Answer 4

Ownership rights, contacts, disputes

Question 5

What should be included in Heads of Terms?

Answer 5

Rent, address, landlord, tenant, use, term, deposit, rent, rent review, termination, repair, alterations, assignment, subletting

Question 6

What are you looking for in your review of draft leases?

Answer 6

Rent amount, rent review details, term details, rent start date, deposit, termination, notice, break, exclusion of 1954 act

Question 7

Provide 4 rent review assumptions?

Answer 7

Available for immediate occupation and use
Available to let on the open market by a willing landlord and willing tenant at market rent
All covenants in the lease have been observed by the tenant
Used for any purpose allowed by the terms of the lease

Question 8

Provide 4 rent review disregards?

Answer 8

Any effect on the rent by the tenants occupation
Any goodwill
Increase in rental value caused by tenants improvements (Licence for Alterations)
Licences personal to the tenant (alcohol licence)

Question 9

What does a Licence for Alterations do?

Answer 9

Enforces tenant to revert on vacation
Disregards the works on a rent review

Question 10

What does a Section 25 Notice do?

Answer 10

Landlord brings the tenancy to an end on the specified date.
If not offering a new tenancy needs to be one of the 7 grounds.

Question 11

What sections of the 1954 act are often excluded?

Answer 11

Sections 24 to 28

Question 12

What does a Section 26 Notice do?

Answer 12

Tenant brings the tenancy to an end on the specified date.

Question 13

Does a section 25 or section 26 notice take precedence?

Answer 13

It depends which gets served first. Only the first one served counts.

Question 14

How much notice is required on a section 25 or section 26 notice?

Answer 14

A minimum of six months, and a maximum of twelve months’ notice.

Question 15

How can a landlord or tenant request a lease renewal?

Answer 15

By the landlord or tenant serving their Section 25 or 26 notice and then negotiating new lease terms.

Question 16

What does Section 24 of the L&T Act 1954 cover?

Answer 16

A tenancy that is part of the Act shall not come to an end unless terminated in accordance with the provisions of the Act.

Question 17

What is the “interim rent”?

Answer 17

The rent which it is reasonable for the tenant to pay while the relevant tenancy continues by virtue of section 24 of the Act.

Question 18

What does Section 27 of the act cover?

Answer 18

The act only applies if the tenant is in occupation or they are operating a business.
The tenancy will come to an end on contractual expiry if the tenant has vacated on or before that date.

Question 19

What does Section 28 of the act cover?

Answer 19

Where landlord and tenant agree a new lease, the tenant’s existing lease immediately loses its 1954 Act protection and terminates on the date the new lease has been agreed to begin.

Question 20

When does the 1954 act apply?

Answer 20

The tenant must be in occupation of the premises for business purposes to benefit from the Act.

There are a number of exceptions where the Act will not apply as follows:
Contracted out tenancies
Tenancies with a term less than 6 months
Agricultural tenancies
Licences
Tenancies at Will

Question 21

What does Section 29 of the act cover?

Answer 21

Order by court for grant of new tenancy or termination of current tenancy

Question 22

What does Section 30 of the act cover?

Answer 22

The grounds on which a landlord may oppose a new tenancy.

Question 23

What are the 7 grounds a landlord can use to refuse a new tenancy?

Answer 23

The grounds of opposition are as follows:

Tenant fault grounds:
(a) the tenant has obligations in relation to repair and maintenance under the current lease and the property is in disrepair;

(b) there has been a persistent delay in the payment of rent;

(c) the tenant has been/is in breaches of other terms of the existing lease;

Tenant no fault grounds (landlord must pay compensation based on rateable value for last 3):
(d) the landlord is able to provide suitable alternative accommodation;

(e) the tenancy was created by a sub-letting and the landlord intends to take back part of the property to use it as a whole;

(f) the landlord intends to demolish or reconstruct the property and it is not possible without the landlord recovering possession;

(g) the landlord intends to occupy the property or part of the property for the purposes of its own business or as its residence.

Question 24

How long must the landlord have owned the property if they use ground G and intend to occupy?

Answer 24

5 years

Question 25

What needs to be agreed by the tenant in order for tenancy to be outside the 1954 act?

Answer 25

Either a simple declaration or a statutory declaration.
Simple declaration is if the notice is served at least 14 days before the new lease is entered into.
Statutory declaration must be made in front of a solicitor but has immediate effect.

Question 26

What is covered by the Landlord and Tenant Act 1927 Section 18?

Answer 26

Dilapidations valuations.
The damages for a breach of a covenant or agreement to keep or put the premises in repair shall not exceed the amount by which the value of the reversion in the premises is diminished owing to the suggested breach.

Question 27

What is CRAR?

Answer 27

Commercial Rent Arrears Recovery

Question 28

What is a CVA?

Answer 28

Company Voluntary Agreement
Alternative to liquidation to pay off debtors over time

Question 29

What is a calderbank offer?

Answer 29

Labelled without prejudice save as to costs, attempt to settle that saves one of the parties having to pay the costs if the offer isn’t accepted.

Question 30

What different kinds of rent review are there?

Answer 30

Open market
Index linked (RPI or CPI)
Turnover rent
Fixed increases

Question 31

What is typically included in a rent review clause?

Answer 31

Current rent
Review date
Review basis
is time of the essence?
Trigger notice requirements
Assumptions
Disregards
Dispute resolution methods

Question 32

When does the 1954 act not apply?

Answer 32

Contracted out tenancies
Term of less than 6 months
Agricultural tenancies
Licences
Tenancy at Will

Question 33

What does the Landlord and tenant covenants act of 1995 do?

Answer 33

Brought about an Authorised Guarantee Agreement which protect a landlord if a tenant wants to assign their lease. (Doesn’t effect sub lease)

Question 34

What is the main section of landlord and tenant act 1987?

Answer 34

Lease assignments consent has to be given in a reasonable time frame.

Question 35

What was the law of property act 1925?

Answer 35

Section 146, forfeiture