Landlord & Tenant

Question 1

What is the leasehold property and repairs act 1938?

Answer 1

Protects tenants from the risk of having their leases forfeited for disprepair or being sued for damages. I.e certain conditions must be satisfied in order to claim damages.
- S.146 notice served
- S.146 notice served at least 1 month before claim
- Referred to tenants rights in the notice itself

Question 2

What tenancy does the leasehold property repairs Act 1938 apply to?

Answer 2

Tenancy with a term of at least 7 years and has 3 years unexpired

Question 3

What is the benefit of service S.25 notice at 6 months?

Answer 3

In a rising market, try to achieve highest rent possible

Question 4

How might a tight user clause affect a Rent Review?

Answer 4

Might decrease the rent achievable

Question 5

What is the Landlord and Tenant Act 1730

Answer 5

Allows the landlord to charge a tenant double the annual value of the premises for unlawfully remaining in them after the previously agreed end date

Question 6

What is a deeming provision

Answer 6

Clause that states exactly how something is to be treated or regarded

Question 7

What are the 5 types of repairing covenant

Answer 7

To put in repair
To keep in repair
To leave in repair
To repair, replace and renew
Fair wear and tear expected

Question 8

What case law established the concept of a Calderbank offer?

Answer 8

Calderbank vs Calderbank (1976)

Question 9

What does the L&T Act 1927 say?

Answer 9

Sections 1-3 allow tenants to carry out improvements even if prohibited by the lease and allows them to claim compensation at lease end.
Section 18 is the limit on landlords claim in damages for a breach in repairing covenant
Section 19 is landlords consent cannot be unreasonably withheld in relation to alienation

Question 10

What is the leasehold property repairs Act 1938

Answer 10

Amends law and protects tenants from the risk of having their leases forfeited for disrepair or being sued for damages – certain conditions must be satisfied in order to claim damages

Question 11

What is the law and property act 1925?

Answer 11

Introduces S.146 notice

Question 12

What are the grounds to oppose under section 30?

Answer 12

Breach in rent payment
Breach in other lease covenant
Breach in repair covenant
Suitable alternative accommodation
Uneconomic subdivision
Refurbishment / redevelopment
Owner occupation

Question 13

Why did you advise that solicitors review the Tenant break notice at Glasshouse Yard

Answer 13

To protect landlords interests and ensure that the notice was valid

Question 14

What were the pre conditions at Glasshouse Yard break

Answer 14

Landlord – 6 months prior written notice

Question 15

Discuss what you would have done differently if the tenant at Unit 29 Bourne was outside the Act

Answer 15

Tenant would have no security of tenure, so may have approached negotiation slightly differently as no ADR.

Question 16

What is the interim period under the 1954 Act?

Answer 16

Section 24a of the 1954 act
Interim rent is payable after expiry of the contractual term and before formal lease renewal has completed (only if applied to court for interim rent)
Set at market rent

Question 17

What notices did you serve on the Tenant at Unit 29 Bourne Industrial

Answer 17

Section 25 friendly

Question 18

What is in a S.25 notice?

Answer 18

Property information
Tenant and Landlord information
Notice of date to end tenancy
Confirmation on whether new lease is offered or opposed
Confirmation on timescales for response
Proposal for new tenancy or grounds for opposition
Strong recommendation to seek professional advice

Question 19

What are the usual assumptions a rent review

Answer 19

Willing landlord and willing tenant
Vacant
Property available for immediate occupation
Complied with other lease terms
Hypothetical term
Premises used for purpose set out in the lease

Question 20

What are the usual disregards a rent review

Answer 20

Tenant occupation
Alcohol licence
Goodwill
Lawful improvements

Question 21

What does time of the essence mean?

Answer 21

Time is material to the provision of the contract (i.e needs to carried out by a specified period)

Question 22

What if you couldn’t agree on the rent review at Compass House?

Answer 22

Independent expert but can award costs

Question 23

What is adverse possession?

Answer 23

When a person who does not have legal title to a piece of property may acquire legal ownership based on continuous possession or occupation without the permission of its legal owner

Question 24

When can you claim adverse possession?

Answer 24

Land Registration Act 2002
Continuously in occupation for 12 years if before 2002 and 10 years after 2002

Question 25

What’s the difference in a valuation at lease renewal vs RR?

Answer 25

Lease renewal is dictated by the 1954 act and Rent Review is dictated by the lease

Question 26

Can you CRAR a licence?

Answer 26

No, can only CRAR a tenancy with exclusive possession and rent

Question 27

You mention in your submission that you acted on behalf of your client in respect of a lease renewal at Unit 29 Borne Ind Estate, Crayford

What was the first notice you served on the Tenant;

Answer 27

Section 25

Question 28

What effect did this have in terms of bringing the existing tenancy to an end?

Answer 28

Notice must specify the date on which the tenancy is to come to an end, must be served not more than 12 and not less than six months before the termination date specified. Therefore in the example in the submission, the tenancy would hold over until the termination date in the s25 notice.

Question 29

What details were contained within the section 25 notice?

Answer 29

The property to be comprised in the new tenancy,
the rent to be payable under the new tenancy and the other outline terms.

Question 30

What advice would you have given you Client if the property was over-rented?

Answer 30

Do nothing – allow the tenancy to hold over with the tenant paying the higher rent.

However, for security of income, serve notice

Question 31

You were aware from discussion with the tenant that they were keen to remain in the unit and agree a new lease. If you had not served a section 25 notice, how else could the existing lease have been terminated?

Answer 31

Landlord and tenant agreeing a new tenancy brings the existing tenancy to an end under section 28 of the Act.

Question 32

What advice would you give your client if the Section 25 notice had been due to expire and an agreement for the new lease had not yet been reached?

Answer 32

Apply to court for an extension of time before the end of the statutory period

Question 33

Which section of the LTA 1954 deals with this?

Answer 33

Section 29B

Question 34

If your client wanted the new lease to be contracted out of the 1954 act, how would you go about doing this?

Answer 34

Landlord serves a warning notice; tenant then has to sign a simple or statutory declaration accepting the position that the rights are excluded from the lease. Lease clause refers to exclusion of s24-28.

Question 35

You also mention that you acted on behalf of your Landlord client in relation to the rent review at Part Ground, First and Seconds Floor, Compass House;

How does the valuation basis for a rent review differ from that for a lease renewal?

Answer 35

The basis for a lease renewal is prescribed by the 1954 act, not the lease.

Question 36

What assumptions and disregards were contained within the rent review clause?

Answer 36

Assumptions - Ready to be let on the open market, fit for immediate occupation, L&T have complied with all covenants, used for the purpose stated in the lease. Disregards – good will on the tenant, good will on the property, tenants improvements

Question 37

What would you have done if the tenant had disputed the level of rent that you were proposing?

Answer 37

Referred the matter to third party determination – arbitrator or independent expert.

Question 38

What do you understand a Calderbank letter to be?

Answer 38

Unconditional offer to settle on specified terms. Must contain a written offer to settle, proposal regarding costs incurred up to the date of the offer, timeframe for accepting the offer, and is made without prejudice save as to costs.

Question 39

What are the positives and negatives of specific ADR

Answer 39

Litigation – costly, lengthy
Mediation – non binding but quick and less aggressive
Independent Expert – expert decisions, binding, but expensive
Arbitration – can’t act on own expertise, can’t delegate duties, binding