Landlord & Tenant Flashcards
Tell me about your understanding of the LTA 1927? Tell me about a key lease clause you are aware of?
Provides for the compensation for improvements and goodwill to tenants of business premises, or a grant of a new lease in lieu thereof; and to amend the law of landlord and tenant.
Key clause: Section 18: Relates to damages for a breach of covenant i.e., dilapidations. Puts a cap on the cost of the repairs
Tell me about your understanding of the LTA LTA 1954? Tell me about a key lease clause you are aware of?
Provides security of tenure for tenants under certain types of residential leases and for certain business premises.
Key Clause: Section 25 - Termination of tenancy by landlord. Not served more than twelve nor less than six months before the date of termination specified therein. Must say if the landlord apposes the grant of a new lease. If opposed, must set out one or more of the ground within section 30(1) of the Act. If not opposed, the notice should set out the: property, the rent payable, and the other terms of the new tenancy.
Tell me about your understanding of the Landlord & Tenant (Covenants) Act 1995? Tell me about a key lease clause you are aware of?
Makes the provision for tenants to be released of covenants following the assignment of a lease.
Key clause:
Tell me about your understanding of the LTA 1988? Tell me about a key lease clause you are aware of?
Relates to the duties imposes on landlords where tenants seek consent for assigning, underletting, charging or parting with possession of a premises.
Key clause:
What is alienation?
The right to assign, sublet, share occupation or charge.
Tell me about your understanding of the Code for Leasing Business
premises
An RICS Professional Statement to improve the quality and fairness of negotiations for lease terms. Encourages both parties to obtain advice from property professionals. Provides a template for Heads of Terms and a checklist to use during negotiations.
Tell me about how you would summarise a lease and what terms you
would be looking out for.
I use a lease summary form to identify the key terms of the lease such as date of lease, commencement date, rent, term, demise, breaks, repairing and insuring covenants, rent reviews, alienation, alterations, security of tenure, and lessor’s convenants.
What is the Regulatory Reform (Business Tenancies) (England & Wales)
Order 2003?
Introduced a simplified procedure for setting up the opt out of security of tenure before the lease is signed. Previously had to apply to the courts, but can now be a plain english notice from the landlord with at least 14 days’ notice setting out what rights the tenant will lose and they then sign it. If not done at least 14 days prior to the lease is due to be signed, the tenant has to visit a solicitor to make a statutory declaration.
What is the role of an expert witness?
To help the court to achieve the overriding objective by giving opinion which is objective and unbiased, in relation to matters within their expertise.
How does the role of an expert witness change from when you are
negotiating?
When acting as an expert witness, the surveyor is obliged to put forward their genuine opinion, must not omit any evidence or argument that appears relevant to them in reaching that genuine opinion and must be impartial and uninfluenced by those instructing or paying them.
How does an advocate differ from an expert witness?
When acting as an advocate, a surveyor is able to put forward arguments and conclusions with which they do not necessarily agree; whereas as an expert witness you are obliged to put forward your genuine opinion.
What is an arbitrator?
A third party surveyor who acts only on the evidence submitted to them.
What is an expert?
A third party surveyor who can make their own investigations.
How does an arbitrator and expert’s roles differ?
An Arbitrator is regulated by the Arbitration Act whereas there is no legislation governing the procedure for an Independent Expert.
How would you establish the relevant third party procedure for a rent
review?
By checking the lease.
How much does it cost to submit an RICS DRS application?
£425 + VAT
What is the difference between the hypothetical lease at a rent review
and lease renewal?
Hypothetical leases at review are dependent on the wording of the lease whereas a hypothetical lease at lease renewal is set out in Section 34 of the LTA 1954.
What is PACT?
Professional Arbitration on Court Terms, which is an alternative dispute resolution procedure parties can agree to use when in dispute over a lease renewal.
How do in and out of Court PACT differ?
In Court PACT allows the court to appoint the surveyor and determine the issues in dispute, whereas Out of Court PACT allows parties to agree the surveyor between them and agree set out the issues in dispute themselves.
What is a Calderbank offer?
An offer made as an attempt to settle a rent review, made without prejudice save as to costs.
What is a break clause?
An option for either or both parties to exercise a right to break the lease, subject to conditions in most instances such as a notice period and how the notice should be served.
Tell me about your understanding of notices under the LTA 1954
There are notices for the tenant (S.24) to request a new tenancy, setting out the terms for that tenancy. The landlord can serve a notice (s.25) opposing a new tenancy or granting a new tenancy with the new terms.
Tell me about your understanding of interim rent
The rent payable between the expiry date and date of the new lease. Shall be the same as the revised rent unless the party can demonstrate that the rent would be significantly different at the beginning and end of the period. LTA 1954 Part II Section 24A-24D outlines how this is determined.
Tell me about your understanding of the Court procedure at lease renewal
Either the tenant or the landlord can apply to the court either for a renewal lease (if the renewal is unopposed) or for an order refusing the grant of a new lease (if the renewal is opposed). The application must be made in accordance with the Civil Procedure Rules (CPR). Part 56 of the CPR deals with applications under the 1954 Act. The claim must usually be issued in the County Court.
What are the Civil Procedure Rules?
The procedural code with the aim to enable the courts to deal with cases justly. They were designed to improve access to justice by making legal proceedings cheaper, quicker, and easier to understand for non-lawyers.
What are the Jackson Reforms?
Deals with how costs are dealt with at litigation. This included a Part 36 offers and making additional sanctions up to 10% of the value of the claim to defendants who do not accept a reasonable offer.
What is a Part 36 offer?
An offer which can be made to settle a lease renewal under The Civil Procedure Rules 1998.
Can you serve a Calderbank offer at a lease renewal?
No, but a part 36 is effectively the same.
What does Section 34 relate to in a lease renewal?
How the rent should be determined.
What is compensation for disturbance?
compensation payable to someone who has been forced to move from their premises or land, and so they can claim the costs in having to leave.
What does Section 18 mean in relation to the LTA 1927?
Relates to damages for a breach of covenant i.e., dilapidations. Puts a cap on the cost of the repairs .
Why would you contract out a lease?
To keep control of the premises and have more bargaining power as a landlord at renewal.
How would you contract out a lease?
The landlord serves a written warning notice - no less than 14 days before the tenant is due to be bound by the lease - to the tenant confirming the statutory rights that the tenant is about to sign away (usually annexed to the lease). This must be signed by the tenant.
If the aforementioned is not possible, the tenant can sign a statutory declaration which will need to be signed and witnessed by an independent solicitor.
What are the Section 30 grounds under the LTA 1954?
A) breach of repairing covenant.
B) persistent delay in paying rent.
C) breach of other covenant.
D) landlord can provide alternative accommodation.
E) tenancy was created by a sub-lease of part only and where separate tenancies for the property would result in a substantially lower rent than would be the case if let as a whole on a new lease.
F) redevelopment
G) landlord’s own occupation (must have owned the property for minimum of 5 years.
What time limits apply in relation to lease renewal notices?
For section 25 or 26 notices, no less than 6 months’ notice and no more than 12 months’ notice. For a section 27, no less than 3 months’ notice.
When would you recommend that a landlord/tenant serves notice in a LTA 1954 renewal?
Depends on the situation at the time.
What does Section 40 of the LTA 1954?
Sets out information landlords and tenants are dutybound to provide each other. For tenants it requires information on their occupancy of the property and any subleases etc. and for landlord it requires information on their interest in the property.
What tenancies are covered by the LTA 1954?
What is the difference between a lease and a licence?
The Street v. Mountford case determined three tests for a lease:
1) Exclusive possession
2) Consideration of payment i.e., a rent
3) A fixed period of time i.e., a term
Tell me about the terms of a new lease in relation to a contracted in lease
renewal? (e.g. lease length)
To be determined between the landlord and tenant, or the court if in dispute, for a term not exceeding 15 years.
How can a tenant quit a contracted in lease?
By serving a Section 27 notice to vacate upon expiry.
What does subject to contract/without prejudice/without prejudice save
as to costs mean?
Subject to Contract - An agreement which is not legally binding until a contract has been signed.
Without Prejudice - Offers with a genuine attempt to settle made WoP cannot be used against someone in court or relied upon as evidence.
Without Prejudice Save as to Costs - Means the correspondence marked as such cannot be disclosed or used as evidence to the court, until a decision on the subject matter has been resolved. Once they deal with the subject of costs, the information marked as such can be shown to the court to show a genuine attempt to settle was made which could have prevented the costly court process, and so they should consider this when awarding on costs.
What does time of the essence mean?
If there are time limits on actioning the review within the lease.
When do notices need to be served at rent review?
As per the lease.
