Landlord & Tenant

Question 1

Tell me about a key lease clause you are aware of

Answer 1

Landlords or Man Co Expenditure

Sets out what a landlord can specifically recover as service charge

Question 2

What is alienation?

Answer 2

‘Alienation’ is the right granted in a lease for a tenant to assign, sublet, or share occupation of their property.

Question 3

Is alienation of part usually permitted?

Answer 3

Alienation of part, or the transfer of rights for only a portion of the leased property, is generally not permitted without the landlord’s consent.

Question 4

What is the role of an expert witness?

Answer 4

An expert witness is a professional with specialized knowledge in a particular field who provides impartial, independent, and objective evidence in legal proceedings, such as court cases

Question 5

How does the role of an expert witness change from when you are negotiating?

Answer 5

During negotiations, a professional may provide advice or represent their client’s interests. In contrast, an expert witness must remain impartial and independent, focusing on presenting objective and unbiased evidence to assist the decision-maker in the legal proceedings.

Question 6

How does an advocate differ from an expert witness?

Answer 6

An advocate represents and argues on behalf of their client, presenting the client’s case in the best possible light.

An expert witness, however, provides independent and impartial evidence based on their expertise, without advocating for either party involved in the dispute.

Question 7

What is an arbitrator?

Answer 7

An arbitrator is a neutral third-party appointed to resolve a dispute between two or more parties. They consider the evidence, arguments, and legal principles presented by the parties and make a binding decision, known as an arbitral award, to resolve the dispute.

Question 8

What is an expert?

Answer 8

An expert is a professional with specialized knowledge and experience in a particular field, which allows them to provide informed opinions and advice.

Question 9

What is the difference between a lease and a licence?

Answer 9

A lease is a legal agreement granting exclusive possession of a property for a specified term, while a licence grants permission to use a property without exclusive possession. Leases create a landlord-tenant relationship and are subject to statutory protections, while licences create a more informal arrangement.

Question 10

Tell me about the terms of a new lease in relation to a contract in lease renewal.

Answer 10

Leaseholders are entitled to a term of 90 years + what’s left of the current term under a statutory lease extension

Under Leasehold Reform & Urban Development Act 1993

Question 11

Talk me through your understanding of the Leasehold Reform Housing and Urban Development Act 1993

Answer 11

In summary:

1. Gave leaseholders greater power and longevity over their assets
2. Right to a statutory lease extension - 90 years
3. Right to collectively enfranchise

Question 12

Summarise the Commonhold and Leasehold Reform Act 2002.

Answer 12

1. Introduce Right to Manage
2. Increased Section 20 threshold
3. Introduced Commonhold
4. Tightened up rules around admin charges

Question 13

Question: What RICS guidance exists on leasehold reform?

Answer 13

“Leasehold Reform in England and Wales - 3rd Edition, 2015”

Useful summarises in Service Charge Code

Question 14

Question: What notices might be served in connection with leasehold reform legislation?

Answer 14

1. Section 42 notice (lease extension)
2. Section 13 notice (collective enfranchisement)
3. Section 79 notice (Right to Manage)

Question 15

What changes were made by the Leasehold Reform (Ground Rent) Act 2022?

Answer 15

The Leasehold Reform (Ground Rent) Act 2022 came into force on 30 June 2022. This Act fulfils the commitment to “set future ground rents to zero.

Question 16

What protections does a lessee have against forfeiture?

Answer 16

Right to apply for relief from forfeiture, which allows them to remedy the breach and restore the lease.

Financial restrictions on level of debt - £350

Question 17

When contemplating forfeiture of a lease, what should you take care to avoid?

Answer 17

avoid any actions that might be considered a waiver of the right to forfeit, such as accepting rent or otherwise acknowledging the lease’s continuation.

Question 18

Question: Tell me about S19 1A of the Landlord and Tenant Act 1927.

Answer 18

Answer: Section 19(1A) of the Landlord and Tenant Act 1927 provides that a landlord cannot unreasonably withhold consent to an assignment, underletting, or change of use, as long as the tenant makes a written application for consent.

Question 19

Question: Tell me about S1 of the Landlord and Tenant Act 1988.

Answer 19

Answer: Section 1 of the Landlord and Tenant Act 1988 imposes a statutory duty on landlords to respond to a tenant’s application for consent to assign or sublet within a reasonable time and not to unreasonably withhold consent.

Question 20

Question: How long does a landlord have to serve a default notice under S17 of the Landlord and Tenant (Covenants) Act 1995?

Answer 20

Answer: Under Section 17 of the Landlord and Tenant (Covenants) Act 1995, a landlord must serve a default notice within six months of the fixed charge becoming due.

Question 21

Question: What is an overriding lease?

Answer 21

An overriding lease is a lease granted by a landlord to a third party that “overrides” the rights of an existing leaseholder, effectively placing the third party between the landlord and the existing leaseholder in the leasehold structure.

Question 22

Tell me about the Housing Act 1988.

Answer 22

The Housing Act 1988 introduced the concept of Assured Shorthold Tenancies (ASTs) and set out the legal framework for creating and managing these tenancies, including provisions related to rent, security of tenure, and grounds for possession

Question 23

Question: Tell me about the Housing Act 1996.

Answer 23

Answer: The Housing Act 1996 amended and updated housing legislation, including the introduction of new rules for homelessness assistance, the allocation of social housing, and revisions to the regulation of Assured Shorthold Tenancies.

Question 24

Question: What is a statutory periodic tenancy?

Answer 24

Answer: A statutory periodic tenancy arises automatically when a fixed-term Assured Shorthold Tenancy expires, and the tenant continues to live in the property without signing a new agreement. It runs on a month-to-month or week-to-week basis, depending on the rent payment frequency.

Question 25

Question: What options does a landlord have for gaining possession under an Assured Shorthold Tenancy?

Answer 25

Answer: A landlord can gain possession under an Assured Shorthold Tenancy by serving a Section 21 notice (no-fault eviction) or a Section 8 notice (based on specific grounds, such as rent arrears or breach of the tenancy agreement).

Question 26

Question: Tell me about the Protection from Eviction Act 1977.

Answer 26

The Protection from Eviction Act 1977 provides safeguards for residential tenants against unlawful eviction and harassment, and it sets out the proper procedures landlords must follow to regain possession of their property.

Question 27

Question: What is voluntary waste?

Answer 27

Voluntary waste refers to intentional or negligent damage caused to a property by a tenant, such as removing fixtures or making unauthorized alterations.

Question 28

What is permissive waste?

Answer 28

Permissive waste refers to the deterioration of a property due to a tenant’s failure to take reasonable care or carry out necessary maintenance.

Question 29

Question: How does a landlord increase the rent under a statutory periodic tenancy?

Answer 29

Answer: A landlord can increase the rent under a statutory periodic tenancy by serving a valid Section 13 notice, which outlines the proposed new rent and the date it will take effect.

Question 30

Question: What is a Schedule of Condition?

Answer 30

A Schedule of Condition is a detailed written and photographic record of a property’s condition at a specific point in time, typically at the start of a lease

Question 31

Question: When might you use a Schedule of Condition?

Answer 31

Answer: A Schedule of Condition is often used before commencing construction or renovation projects, to establish a baseline condition of the property and help avoid disputes later on.

Garages - Hanwell.

Question 32

Question: Tell me about the right of first refusal under the Landlord and Tenant Act 1987.

Answer 32

The right of first refusal under the Landlord and Tenant Act 1987 requires landlords to offer their interest in a property to qualifying tenants before selling it to a third party, giving the tenants the opportunity to buy the property on the same terms as offered to the third party.

Question 33

Question: Tell me about the right of first refusal under the Landlord and Tenant Act 1987.

Answer 33

The right of first refusal under the Landlord and Tenant Act 1987 requires landlords to offer their interest in a property to qualifying tenants before selling it to a third party, giving the tenants the opportunity to buy the property on the same terms as offered to the third party.

Question 34

What does S166 of the Commonhold and Leasehold Reform Act 2002 stipulate in relation to ground rents?

Answer 34

Section 166 of the Commonhold and Leasehold Reform Act 2002 requires landlords to provide a written notice to leaseholders specifying the amount of ground rent due, the date it is due, and the payment method, before the leaseholder is obliged to pay the ground rent.

Question 35

What rights does a residential long-leaseholder have when their lease expires?

Answer 35

A statutory right to continue in occupation as rented tenants at the end of the lease term. They will also have statutory rights to extend their lease or buy the freehold with some of the other leaseholders.

Question 36

Tell me about a recent political development affecting residential long leases.

Answer 36

Micheal Gove stepping in to warn agents to not charge for historic building defects - citing criminality

Question 37

Tell me about a recent political development affecting residential tenancies.

Answer 37

A recent political development affecting residential tenancies is the abolition of Section 21 “no-fault” evictions in England, which seeks to provide more security and stability to tenants by requiring landlords to provide a valid reason for ending a tenancy.

Question 38

Tell me about an instance of when you have reflected market conditions
on rental value.

Answer 38

I’ve reflected that we see some reductions in rent where demand for city-based housing may decrease - not main area though

Question 39

How do you collate, analyse and adjust comparable evidence?

Answer 39

In valuation: Via Right move, do it clearly, lay out square meterage/footage

Lay out average values

Adjust using advice of senior valuer for condition and location

Question 40

What is the hierarchy of evidence?

Answer 40

Answer: The hierarchy of evidence refers to the relative strength and reliability of different sources of information used in property valuation or analysis. It generally follows this order, from strongest to weakest:

Directly relevant market transactions (e.g., recent sales or leases of the subject property or highly comparable properties)

Indirectly relevant market transactions (e.g., sales or leases of properties with some similarities to the subject property)

Market trends and analysis (e.g., industry reports, market surveys, and expert opinions)

Hypothetical or theoretical evidence (e.g., pro forma analyses, financial models, or assumptions based on limited data)

Question 41

What is the hierarchy of evidence?

Answer 41

Answer: The hierarchy of evidence refers to the relative strength and reliability of different sources of information used in property valuation or analysis. It generally follows this order, from strongest to weakest:

Directly relevant market transactions (e.g., recent sales or leases of the subject property or highly comparable properties)

Indirectly relevant market transactions (e.g., sales or leases of properties with some similarities to the subject property)

Market trends and analysis (e.g., industry reports, market surveys, and expert opinions)

Hypothetical or theoretical evidence (e.g., pro forma analyses, financial models, or assumptions based on limited data)

Question 42

Tell me about a landlord & tenant negotiation you have been involved
with.

Answer 42

For our own office

We got better parking spaces

Slightly reduced rent

Question 43

Talk me through when you have read a lease to establish the extent of
your client’s demise.

Answer 43

Typically our clients are man. co.s

I would look at extent of:

Grounds - under lease plan
Powers to maintain

We use lease analysis tool to do it

Question 44

Tell me about the impact of a service charge clause on both landlord and
tenant from your experience.

Answer 44

Lack of reserve fund

Leases provides for recovery of costs in one year only in the service charge recovery clauses

Lessees:

Short term saving on service charge
Heavy burden at time of major works

Landlord:

Delays to major works
Disputes
Difficulties in upholding repairing covenants

Question 45

Tell me about when you have prepared, served and responded to notices.

Answer 45

Prepared Section 20 Notices

Served - Section 20 notices & RTM Notices - Served Pre Legal notice with summary of rights and obligations - Served 146 Section notices

Responded - To notice of deficiencies - quickly and requested to meet fire brigade officer, involved client. Reached swift resolution