Landlord & Tenant Flashcards
What creates a tenancy (5)?
- Must be a landlord & tenant. 2. Must be exclusive possession. 3. Must be identifiable land. 4. Must be for a definite period. 5. Lessor must retain reversion.
What are the main clauses of a lease (4)?
- Parties. 2. Premises. 3. Rent. 4. Term
What is ‘time of the essence’?
The requirement to serve notice in accordance with the time table within the lease regarding rent reviews. The presumption is that it is not time of the essence unless the lease states that it is.
What assumptions do you make at rent review (4)?
- The property is available on the open market by a willing tenant and landlord for a term of years. 2. The property is fit and available for immediate occupation. 4. All covenants observed by landlord & tenant. 4. The property may be used for the purpose set out in the lease.
What disregards do you make at review (2)?
- Goodwill. 2. Tenants improvements (if landlord has consented).
What is a hypothetical term?
The length of term to be valued. If silent, assume the residue of the term.
What is the hierarchy of evidence?
- Open market lettings. 2. Lease renewals. 3. Rent Reviews 4. Independent expert determinations. 5. Arbitrator awards.
Is there an alternative to the usual hierarchy of evidence?
The RICS Professional Standard ‘Comparable Evidence in Real Estate Valuation’ - Category A - Direct comparables. Category B - General market data. Category C - Other sources.
What is a Calderbank Letter?
A settlement offer. “Without prejudice save as to costs” gives you the right to refer the letter to the court on the question of costs if the offer is not accepted. Must be genuine, contain all the terms and stay open for acceptance for a stated time (usually 21 days).
What is an Arbitrator?
Uses evidence and arguments submitted by the parties only. Cannot be sued for negligence. Has powers of disclosure. Is subject to the Arbitration Act 1996. Has power over all costs. Makes an ‘award’ with limited rights of appeal.
What is an Independent Expert?
Can consider their own evidence. Can be sued for negligence. Has no powers of discloser. No legislation so acts on an informal timetable. Has power over their cost only. Makes a ‘determination’ which cannot be appealed.
What would you do if the parties cannot agree at a rent review?
Read the lease to see what options are stated - determined by an arbitrator or independent expert.
If a lease is outside of the Landlord & Tenant Act 1954 what does this mean?
The tenant has no automatic right to renew the lease.
If a lease is within the Act, how does the landlord ask a tenant to leave?
Issue a Hostile Section 25 Notice between 6 and 12 months before the date of termination. Must include grounds for opposition (Section 30 - Grounds A-G).
What are the grounds in Section 30 for service of a Section 25 Notice?
A - Breach of repair. B - Persistent delay in paying rent. C - Other substantial breach. D - Landlord can provide suitable alternative accommodation. E - Uneconomic subdivision (compensation payable). F - Demolition or reconstruction (compensation payable). G - Owner occupation (compensation payable).
