Landlord and Tenant - Session 2 Flashcards
What action can a LL take when a tenant is in breach of repairing covenant?
Serve S146 - state breach of covenant and explain what you want doing about it
Sue and damages are limited by S18 of 1927 Act
If the lease permits, then LL could enter premises and repair, and re-charge the tenant
Forfeiture, damages, exercise the right of entry to repair
How are damages assessed when a tenant is in breach of repairing covenant?
S18 LL & T Act 1927 - damages are limited to the diminution of value in the LL interest
Explain difference between Schedule of Condition and Schedule of Dilapidations
Schedule of Condition is statement describing physical state of building, usually prepared by T surveyor to limit repairing liability (needs to be agreed with LL surveyor)
Schedule of Dilapidations is a record of alleged breaches of repairing covenant, usually prepared by L surveyor
Explain difference between interim and terminal schedule of Dilapidations
Interim is served when there are more than 3 years left to run, whereas Terminal/Final is served in the last three years of the term
What lease terms are implied under s19 of the LL & T Act 1927?
Consent for assignment and alterations must not be unreasonably withheld
Explain the legislation that needs to be considered in an assignment of a lease
LL&T Covenants Act 1995 - may require AGA
What do you understand by the expression ‘authorised guarantee agreement’ (AGA)
Agreement that places obligation on outgoing tenant to guarantee performance of covenants.
Comes from LL & T covenants act 1995 section 16, and came into effect 1 Jan 1996 (if lease starts before this date, the AGA does not apply)
What is the usual amount of an assignee’s business profit that a LL will look for before giving consent to assign?
3x the annual rent and other payments due under the lease (service charge, business rates, insurance)
What conditions are usually attached to break clauses?
EG minimum of 6 months notice, T must have not breached any lease covenants from start to end of lease, and T has to pay 3 months worth of rent (fine or premium)
Conditional on T having complied with all terms of lease
Fine or premium must be paid
LL might instruct surveyors to find a breach of covenant to ensure T can’t meet break notice as non-compliant
Give 2 examples of situations where it was held in court that a break notice was invalid/ineffective?
Osborne Assets Ltd vs Britannia Life Ltd Case:
- T was due to have painted x3 coats of paint every 5 years
- Invoices showed only x2 coats of paint
- T couldn’t break
Riverside Park vs NHS Property Services:
- 10 year lease from
- Break conditional on ‘vacant posessoin’
- T did not remove demountable office partitions
- Break notice invalid
A tenant has entered into a full repairing and insuring lease of a property in disrepair. The LL requires T to remedy this disrepair. What advice would you give T?
A tenant that agrees to ‘keep in repair’ must ‘put in repair’ unless standard of repair is limited by a Schedule of Condition.
Tenant has got to do the repairs
What action can a tenant take when a LL is in breach of repairing covenant
Tenant can request LL carries out repairs
Can get injunction from court compelling LL to carry out repairs
What is a Scott Schedule?
Used if the matter is going to court - Schedule of Dilaps is turned into a Scott Schedule as this is the recommended form (recommended by RICS) of which a Schedule of Dilaps should be presented in court.
what is the significance of the LL & T act 1927 & what are the sections?
Sections 1 -3 - relating to registering tenants improvements
Section 18 - damages are limited to the diminution of value in the LL interest
Section 19 - LL consent cannot be unreasonably withheld.
How is compensation for tenant’s improvements calculated?
Cost of doing the repairs less the cost of any disrepair
