Landlord and Tenant (Level 3) - SOE Specific Flashcards
When was the LL&T Act 1954 last amended?
1st June 2004
What notice should be served to contract out of the LL&T Act 1954 at lease renewal?
- S38 notice to contract out before a fixed tenancy starts.
- The LL must serve a notice under the Regulatory Reform (Business Tenancies) England and Wales Order 2003.
What is the general aim of the LL&T Act 1954?
Gives security of tenure to the tenant and outlines procedures for terminating a tenancy, and the grounds upon which a landlord may oppose a new tenancy.
What does it mean if a tenant’s lease is within the Landlord and Tenant Act 1954?
They have security of tenure – tenant can remain in occupation on the agreed terms of the lease at the end of the term until the tenancy is terminated in accordance with the act.
What tenancies does the LTA 1954 not apply?
- Agricultural
- Mining
- Residential
- Tenancies granted as condition of employment
- Tenancies not exceeding 6 months, unless:
a) there is a provision for extension or;
b) T has been in occupation for more than 12 months
What is the process of contracting out of the LL&T Act 1954?
Landlord must serve notice on Tenant under Regulatory Reform Order 2003.
* If notice served minimum of 14 days before lease agreement/lease start date then Tenant signs simple declaration.
* If lease is due to commence within 14 days of the notice then Tenant signs statutory declaration before a solicitor.
What sections are in part 1 of the Landlord and Tenant Act 1954?
Section 1 to 22
What does section 23 of the Landlord and Tenant Act 1954 outline?
Tenancies to which the Act applies.
What sections are in part 2 of the Landlord and Tenant Act 1954?
Sections 23 to 43
Name grounds under the s30(1) of LL & T Act 1954 under which a LL can obtain possession?
7 grounds:
a) T has failed to carry out repairs
b) T has persistently delayed paying rent
c) T is in substantial breach of some other covenant
d) L offers suitable alternative accommodation (LL doesn’t have to own the property, so long as they can secure another space)
e) Where the tenancy was created by a sub-tenancy and the building let as a whole would produce a higher rent than from separate lettings
f) L intends to demolish or substantially reconstruct the premises and cannot do so without obtaining possession
g) L intends to occupy the premises for his own purposes (LL must have been LL for minimum of 5 years - S30(2))
-NOTE - (last 3 grounds are the no-fault grounds)
What does section 43 of the Landlord and Tenant Act 1954 outline?
Tenancies to which the Act doesn’t apply to.
In what circumstances is a T entitled to compensation when a LL successfully opposes a new lease under the 1954 Act? - COMMON QUESTION
The last three grounds (the no-fault grounds) as the tenant is required to leave through no fault of their own
NOTE: if it is one of these grounds (e, f or g) AND another (a, b or c) then the tenant should not get compensation! Has to be ONLY no-fault grounds
How is T compensation assessed under 1954 Act in relation to the no fault grounds?
If tenant has been in occupation for 14 years or more, then get twice RV and if less they get once RV
What are sections 24-28 of the act?
- S24 is holding over
- S24a is interim rents
- S25 is landlord termination
- S26 is tenant request
- S27 is tenant termination
- S28 is landlord/tenant agree new lease.
What is the significance of the Landlord and Tenant Act 1927 in relation to alterations and improvements?
S18 LL & T Act 1927 - Diminution in Value Rule – The landlord cannot claim more in damages than the reduction in the property’s value caused by the tenant’s failure to repair.
What is the significance of the Landlord and Tenant Act 1927 in relation to consent?
S19 L & T Act 1927 - Landlords cannot unreasonably withhold consent
What is the difference between a lease and a licence?
A lease gives exclusive possession of property
Whereas a licence gives the right to use property in a certain way for a certain period of time that would otherwise constitute trespass.
What are the usual disregards in a rent review?
a) tenants’ previous occupation
b) any goodwill
c) certain improvements
d) any licence to sell intoxicating liquor belonging to the tenant.
In what circumstances might you grant a licence?
Car park, external seating, grazing, telecoms.
What are the usual assumptions for a rent review?
a) premises is fit for immediate use and occupation or vacant
b) market rent will be payable after any incentives/rent free
c) tenant has complied with existing lease covenants
d) no work has been carried out by the tenant that has reduced the rental value
e) if the property has been damaged or destroyed then it has been reinstated.
What is a Calderbank offer in relation to a rent review?
A party may seek to settle and protect themselves against liability for costs by making an unconditional offer to settle on specified terms, expressly stating the right to refer the offer to the arbitrator after he has made his award except for costs.
What options for resolution exist if a rent review could not be agreed?
Calderbank offer
Independent expert or arbitrator, depending on what is stated in the rent review clause of the lease.
What are the three main factors to be covered within a rent review clause?
- Machinery for effecting the rent review
- Basis of valuation
- Means of settling a dispute.
What is in a Rent Review memo?
- Name of both parties and company registration numbers
- Address of property
- Date of lease and rent review
- Confirmation of new rent
- Signed and dated by both parties.
