Landlord & Tenant Flashcards
What are the key sections of the Landlord & Tenant 1954 Act
23 - Application of the Act.
24 - Security of tenure provisions and continuation of tenancy.
24a - Interim rent.
25 - Landlords notice to end the lease or seek a new lease.
26 - Tenant’s notice to seek a new lease.
27 - Tenants notice to end the lease.
28 - Renewal of tenancy by agreement.
29 - Order by Court for a new tenancy.
30 - Landlords ground for opposition of a new lease.
32 - 35 Terms of the new lease.
34 - Basis of valuation for the new rent.
37 - Compensation provisions.
38A - Contracting outside the Act.
40 - Notice requesting information about either party.
What are the 6 basic elements a business tenancy must include for protection under the act (23)
- It is a tenancy
- Occupied / used for a business
- Occupation of at least part by the tenant
- 6months+ occupancy
- Not an exempted or excluded tenancy (TaW)
- There must be a competent landlord.
What is a competent landlord
Defined in section 44 as a person / body upon whom notice should be served or who serve.
Must be a freeholder or superior tenants with unexpired lease term of over 14 moths.
Describe section 24
Security of tenure provisions.
A tenancy to which the act applies does not expire by the effluxion of time - but when a notice is served.
When no notice is served this = ‘holding over’ until a notice is served.
Tenant pays interim rent = market rent.
Describe section 25 and what the notice must be.
LL notice served on the tenant.
Must:
- Be given by a competent LL to tenant
- Relate to the whole property in tenancy
- State lease termination date
- Be in prescribed form and inform tenant of their rights
- proposed terms of new lease (non-hostile)
- hostile - grounds of opposition to new lease to be stated.
What are the contents of a S 25 notice?
Name & address of LL & tenant.
Property address
Notice of termination date
Confirmation a new lease is granted or opposed.
Confirmation of the date of response
LL proposals for a new tenancy
Recommendation to seek professional advice.
What is section 26
Tenant can serve notice requesting a new tenancy
What are the timelines for a section 25 & 26 notice
No more than 12 months
No less than 6 months from termination date
What is section 27
Notice to be served by tenant anytime if they want to vacate.
On 3 months notice.
Is there any case law pursuant to s27
Esselte AB vs Pearl Assurance plc 1997.
If a tenant moves out prior to expiry date. No notice needs to be served if the property is vacant.
What is s 28
Renewal of tenancy by agreement
Can a tenant appeal a section 25
Yes - they can appeal to the court
What is section 29
Order by the court to grant a new tenancy.
What does section 30 set out?
The seven ground for opposition to grant a new tenancy (a-g)
What are the 7 grounds of opposition?
a) Breach of repairing covenant
b) Persistent delay in paying rent
c) Other substantial breach (Anti-social / criminal behaviour)
d) Provide suitable alternative accommodation
e) Uneconomic subdivision
f) Demolition or reconstruction
g) Owner occupation
Which grounds are discretionary and which are mandatory
A-E are discretionary and the court can decide whether it is reasonable.
F&G are mandatory
What is required by the LL for ground F
LL must prove firm intention for redevelopment.
This can include funding, planning, substantial work / drawings, necessity for VP to redevelop.
What is required by the LL for ground G
LL must have owned the property for 5 years and prove intention to occupy.
Is security of tenure protected if it is silent in the lease
Yes - lease must specifically exclude sections 24-28.
What do sections 32-35 of the LTA detail
Terms of the new lease
What does section 33 detail
Duration of the lease
What does section 34 detail
Basis of valuation for the new rent.
Either agreed by LL & tenant or determined by the court AT oml
What does section 37 detail?
Compensation provisions.
If LL obtains possession following a successful s25, tenant is due compensation for disturbance if the tenant has not breached the terms.
What grounds is compensation payable
E-F - LL led oppositions
What is the compensation?
14 years plus occupation = RV x 2
Less than 14 years rateable value.
What is rateable value
The value assigned to non-domestic premises by the Valuation Office Agency. It’s based on a property’s annual market rent, size and usage.
What are the 4 assumptions for MR
- Regards to terms of new tenancy
- Willing LL & tenant
- Let with vacant possession
- Effect on rent on the operation of the 1955 covenants acts is considered.
If rent is settled by the courts what four matters are disregarded
- Effect on rent of the tenants occupation
- goodwill between tenant and premises
- effect on rent by tenant improvement unless 21 year before the date of new tenancy application.
- For licenced premises any effect on rent of additional value because a license belonging to a tenant.
What is section 40
Notice to request additional information from either party.
What is PACT and when was it launched
Professional Arbitration on Court Terms. 1997
What is section 38A
Contracting a lease renewal outside of the act.
Why might a LL want to contract a lease outside the act
Re-occupation
Re-development
Low rent
Future flexibility
What occurs at the end of the lease when a renewal is outside the act
Tenant must vacate and has no statutory right to remain
No compensation is payable
No rent to be collected until a new lease has been collected. Collection of rent may create a protected tenancy
LL is required to serve notice / health warning on the tenant. That renewal wont be protected.
Tenant must make a declaration of confirmation & acceptance of notice in response.
What are the 2 types of declaration in section 38a.
Have you served these before
Simple - when parties have at least 14 days or more prior to committing to the lease
Statutory - when parties have less than 14 days. Stat dec must be made before an independent solicitor.
Yes stat dec was served in case study.
