Landlord & Tenant Flashcards

Question

What is Section 24 of the ‘54 Act?

Answer 1

- S24 covers **continuation tenancies** - **At the end of the fixed term** of business tenancy to which the Act applies, **the tenancy will not come to an end if the tenant remains in occupation for business purposes.** Will **automatically continue** on the same terms until it is terminated in accordance with Act. - Known as the **continuation tenancy** - a tenant whose protected lease has expired but they have not vacated is said to be ‘holding over’ under the expired lease.

Answer 2

Landlords notice for grant or termination of lease - Served with a date not more than 12 months and not less than 6 months before the date for the termination of the tenancy to be specified, which cannot be be before the contractural expiry date specified in the lease Notice must be - Given by a competent landlord and be given to the tenant - State the date for the termination of the tenancy - Be in the prescribed form and inform the tenant of their rights - Where Landlord is prepared to grant a new lease (non hostile notice) the proposed terms of new lease must be stated to include new rent - Where landlord opposes a new lease (hostile notice) the grounds for opposition must be stated - Parties can extend time limits by agreement - Max term of 15 yrs granted by the County Court but the parties are free to agree a longer term if they wish - If you undertake a lease renewal negotiation and pass the date for a new lease/termination as specified in the s25 or s26 notice, tenant loses security of tenure unless: there is a new lease in place, either party has applied to court, or, the parties have agreed in writing to an extension of the deadline to apply to court for a new tenancy

Answer 3

- Name and address of the landlord and tenant - Address of the property - Notice of the date to end the tenancy - Confirmation of whether a new lease is to be opposed or granted - Confirmation of the date by which the tenant must ask the court for a new tenancy - Landlord's proposals for a new tenancy to include the proposed rent if a 'friendly' notice - If the landlord opposes the new tenancy (hostile notice) the ground(s) for opposition must be stated, which cannot later be amended - A strong recommendation to seek professional advice

Answer 4

Tenant's request for a new lease. - Tenant can serve a notice requesting a new tenancy beginning with a date not more than 12 months and not less than 6 months after the making of a request, which cannot be before the contractual expiry date specified in the lease - Notice must be in the prescribed form - It must state the tenant's proposals for a new lease to include the proposed rent - If the landlord opposes this, a counter notice must be served within 2 months

Answer 5

When tenant does not want the lease to continue beyond the original fixed term - Tenant can serve a S27 Notice on the landlord giving at least 3 months' notice, expiring at the lease end, that they are intending to vacate - Tenant has no obligation to tell landlord that they intend to vacate - no requirement to serve a S27 notice - If tenant wishes to vacate once they are holding over following expiry of the contractual term, a S27 notice must be served on landlord. Must give at least 3 months' notice of termination

Answer 6

**Section 30** sets out the 7 ground for opposition to grant a new tenancy: a) Breach of repairing covenant b) Persistent delay in paying rent c) Other substantial breach d) Provide suitable alternative accommodation e) Tenancy was created by a sub-letting (compensation payable) f) Demolition or reconstruction (compensation payable) g) Owner occupation (compensation payable For redevelopment, landlord must prove firm intention, prove funding and planning, substantial work and necessity to gain vacant possession and an ability to redevelop provided VP is secured For owner-occupation, landlord must have owned property for 5 years and prove intention to occupy and/or run business

Answer 7

**Rent under new tenancy.** Rent should be as may be agreed between L&T determined by the court that at which, having regard to the terms of the tenancy (other than those relating to rent), the holding might reasonably by expected to be let in the open market by a willing lessor.

Answer 8

1. Any effect on rent of the tenant's occupation 2. Any goodwill in the tenant's business attaching to the premises 3. Any effect on rent improvements carried out by tenant 4. In the case of licensed premises, any effect on rent of additional value because of a license (e.g. alcohol)

Answer 9

**Section 40 Notice** **requests information from either party** so that the landlord or tenant can check exactly who is the **competent landlord or the tenant with statutory protection** Either party can serve during tenancy requesting details such as **name and registered address** **Have to provide details within 1 month** - failure can be taken as a breach of statutory duty Not limited to one request

Answer 10

Defined under **Section 44** as the person/body upon **whom a notice should be served or who should serve the notice** Must be a freeholder or superior tenant with unexpired term of over 14 months

Answer 11

* **Default** dispute resolution mechanism for renewal of a lease that is protected by the '54 Act is a **referral to the Country Court** * Subject to both parties agreeing, an Alternative Dispute Resolution option is a reference under **PACT (Professional Arbitration on Court Terms)** * Part 36 Offer of the Civil Procedure Rules

Answer 12

**County Court Process for Lease Renewal Dispute (Following S25 or S26 Notice)** - **Application**: After a valid S25 or S26 notice, the tenant usually applies to the County Court for a new tenancy and serves proceedings on the landlord. - **Case Management Conference**: Begins with a conference (phone or video call) to set a timetable for each stage of the case. - **Hearing Date**: A date is fixed for the hearing if the matter is unresolved through negotiation. - **Court Hearing**: Lawyers and witnesses present cases; the court determines the new lease terms. - **Compliance**: Strict adherence to procedural steps and deadlines is essential. - **Costs**: The trial judge has discretion over awarding costs for the proceedings. - **Cooling-off Period**: After the order, the tenant has a period to decide whether to accept the court-ordered lease terms.

Answer 13

- Only an option if both parties agree to refer the dispute to PACT - A joint initiative by RICS and the Law Society - Encouraged by the courts and by RICS as an ADR mechanism for unopposed business tenancy renewals - Non rent issues decided by solicitor, rent issues by chartered surveyor - Parties free to decide some procedural matters including whether dispute resolver acts as an arbitrator or an independent expert - Dispute resolver can be appointed following application to the DRS or by application to Law Society - Decision is binding

Answer 14

- Faster - Cost savings - an expensive County Court is avoided - Greater flexibility and control over procedure for the parties - Decision by a surveyor on rent-related terms rather than a County Court judge

Answer 15

23 - Application of the act 24 - Security of tenure provisions and continuation of tenancy (holding over under the Act) 25 - Landlord's notice to end the lease or seek a new lease 26 - Tenant's notice to seek a new lease 27 - Tenant's notice to end the lease 28 - Renewal of tenancy by agreement 29 - Order by Court for a new tenancy 30 - Landlord's grounds 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 44 - Definition of a competent landlord

Answer 16

A lease can be contracted outside the '54 Act under **Section 38a** (introduced in 2003) if these steps are followed: - **Warning notice:** The landlord serves a notice to the tenant explaining that **their rights are being waived.** - Tenant's declaration: The tenant makes a **simple or statutory declaration** acknowledging the waiver. A **simple declaration requires at least 14 days' notice** before the lease is granted. - **Lease endorsement:** The lease must reference the landlord’s notice and the tenant’s declaration, confirming the agreement to exclude the 1954 Act provisions

Answer 17

- A requirement of the head lease to grant any subletting outside the Act - The landlord will want to re-occupy the property in due course - The landlord wishes to redevelop the property at the lease end - The rent may be lower - The landlord want's future flexibility

Answer 18

- Forfeiture - Surrender and negotiation - Break clauses - Lease expiry and service of notices under the '54 Act - Merger - Disclaimer (due to insolvency)

Answer 19

**Assumptions**: 1. No work by the tenant has diminished the rental value. 2. If the premises were damaged, they are assumed to have been fully repaired or rebuilt. 3. Both the landlord and tenant are assumed to have fully complied with their lease obligations. 4. The premises are in the same condition as when the lease commenced. 5. The hypothetical lease mirrors the actual lease except for the rent amount. 6. The premises are available to let with vacant possession. 7. The hypothetical lease will be renewed under the 1954 Act. **Disregards**: 1. Any tenant occupation or use that could affect rent is disregarded. 2. Goodwill from the tenant’s business is disregarded. 3. Any tenant improvements are disregarded unless required by the lease. 4. Any licenses (such as alcohol)

Answer 20

**Serve a Calderbank offer** - This is a formal offer made in writing, **"without prejudice save as to costs**, offering a final settlement figure. It must be an unconditional offer, capable of being accepted.

Answer 21

1. **Due Diligence**: I reviewed the proposed assignee’s **financial stability** and **business suitability** to ensure they could meet the lease obligations. 2. **Lease Review**: I carefully examined the lease, particularly the **alienation clause**, to confirm the assignment complied with the lease terms. 3. **Advised on Rent Deposit**: Since the assignee was new to the trade, I advised the landlord to request a **rent deposit** as a precautionary measure. 4. **Facilitated Legal Documentation**: After completing my review, I recommended proceeding with the assignment and facilitated the preparation of the necessary **legal documentation**.

Answer 22

Yes, under **Section 1 of the Landlord and Tenant Act 1988**, a landlord is required to respond to an application to assign a lease **within a reasonable time**. Although the Act doesn’t specify an exact timeframe, case law generally interprets a reasonable time to be **around 28 days**, depending on the circumstances. The landlord must: 1. **Give consent** (which may be subject to reasonable conditions, such as a rent deposit). 2. **Refuse consent**, but must have reasonable grounds for doing so. Failing to respond within a reasonable time may be considered a breach of the landlord's obligations, which could expose them to legal claims from the tenant.

Answer 23

In this case, the lease could have included provisions that limited the tenant's ability to assign, such as: 1. **An Authorised Guarantee Agreement (AGA)**: This would require the **outgoing tenant** to guarantee the obligations of the incoming assignee, ensuring that if the assignee defaults, the original tenant remains liable. 2. **Alienation Clause**: The lease may have stipulated that assignment is only permitted with the **landlord’s consent**, which cannot be unreasonably withheld or delayed, as outlined in the Landlord and Tenant Act 1988.

Answer 24

1. **Financial Instability**: If the proposed assignee lacks sufficient financial stability or a proven business track record, the landlord may refuse consent, fearing potential rent arrears or lease breaches. 2. **Unsuitability of Use**: If the assignee’s proposed use of the premises doesn’t comply with the lease terms or planning permissions, or if the use could negatively affect the reputation or operation of the property, the landlord could refuse. 3. **Covenant Strength**: If the assignee is deemed to have weaker covenant strength than the outgoing tenant, the landlord might reject the assignment to protect their investment. 4. **Breach of Lease**: If the tenant is in breach of any lease terms, such as unpaid rent or repairs, the landlord may withhold consent until these breaches are remedied. 5. **Alienation Clause Restrictions**: If the lease includes specific restrictions on assignment (e.g., only allowing assignment to certain types of businesses or requiring guarantees), the landlord could reasonably refuse if those conditions are not met. These grounds must be **reasonable** and in line with the lease terms; otherwise, the landlord may face **legal challenges under the Landlord and Tenant Act 1988.**

Answer 25

- Lease had an **alienation clause** that required landlord's consent for any assignment (not to be unreasonably witheld as per **S. 1 Landlord & Tenant Act 1988**) - No specific guarantees that restricted the tenant from assigning their lease - Advised landlord to request **rent deposit** from assignee due to their relatively new business

Answer 26

1. **Alienation Clause**: Ensuring the lease includes an alienation clause that requires the landlords **written consent** 2. **AGA**: The outgoing tenant may be required to enter into an AGA, meaning the remain **liable for the lease** if the incoming tenant defaults 3. **Rent Deposits or Guarantors** 4. **Due Diligence**: Performing due diligence on the assignee's financial standing and business viability before granting consent

Answer 27

Governs the rights and obligations related to goods left behind by a tenant after a lease had been forfeited or ended. Key points include: 1. **Duty of Care**: Landlord has a duty to take reasonable care of the tenant's goods left on the premises. 2. **Notice Requirements**: Landlord must serve a **written notice** to the tenant, giving them a **reasonable time to collect their belongings** 3. **Disposal of Goods**: If the tenant does not respond, landlord can dispose of the goods, but must followed correct procedure outlined in the Act

Answer 28

**Part 36** of the **Civil Procedure Rules** allows a **Landlord or Tenant** to set out their **proposals for a new lease** in a **"Without Prejudice" offer letter** at any stage of the lease renewal process. They **cannot be referred to at trial** they only affect the outcome when dealing with **costs of the court proceedings**. If an **offer is made and not accepted** and at trial the party who made the offer equals or betters the terms proposed in the offer, there will be costs consequences for the other party for not accepting. The offer is **open for acceptance for a period of not less than 21 days**. After this period, it can still be accepted but it is possible for the offer to be **withdrawn by the party who made it.** The costs of the offer are set out, and if the offer is not accepted and the case goes to court, the final judgment will determine who pays the costs.

Answer 29

Form of **ADR** for **lease renewal disputes**. Can be used to resolve disputes in the following matters: * Duration of a new lease * Rent/interim rent * Drafting * Repair * Service charge * Alienation * Break clauses * Other terms of the new tenancy * Drafting of the provisions to be included in the new tenancy * Combination of the above

Answer 30

**Benefits**: * **Higher rent**: Since the tenant benefits from security of tenure, the landlord might be able to charge a **higher rent in return for this added security** * **Long-term occupation**: A lease inside the Act can provide a **stable, long-term tenant**, which can increase the **investment value** of the property **Negatives** * **Difficulty regaining possession**: Landlord cannot easily terminate the lease at the expiry date if they wish to **redevelop** or find a new tenant, as the tenant has the right to renew under the Act (unless Landlord can prove **firm intention** to redevelop, in which case compensation may be payable) * **Less flexibility** * **Negotiation limits**: Landlord is limited in the **grounds for opposing renewal**, making it harder to regain control of the property

Answer 31

1. **Landlord's name and address** 2. **Tenant's name and address** 3. **A termination date** that was not before the lease's contractual expiry 3. A statement indicating that the **landlord was not opposed to granting a new tenancy** 4. **New rent** 5. **Lease start date** 6. **Terms of new lease**

Answer 32

* **Rising market (acting for landlord):** I served the notice **early to lock in a rent increase** as soon as possible * **Rising market (acting for the tenant)**: I would have advised the tenant to **delay proceedings** to take advantage of the rent **not increasing** immediately * **Falling market (acting for the landlord)**: I would have delayed serving the notice, allowing the tenant to remain on a **holding-over basis at the current rent** (if higher than market rent) * **Falling market (acting for the tenant)**: I would initiate proceedings early to secure a **rent reduction at the earliest opportunity**

Answer 33

The basis for a **lease renewal** is **prescribed by the 1954 Act**, not the lease

Answer 34

* Arbitrator is **governed by the Arbitration Act 1996**, and Expert by the lease * An Expert has a **duty of investigation**, an Arbitrator acts **only on the evidence submitted** by the parties * An Arbitrator must **refer to the parties' evidence**, submissions aren't always required for Expert Determination * An Arbitrator always has **discretion on costs**, an Expert only has power **if the lease reserves this** * There is **no right of appeal for an Expert** (although the Court may set aside the Determination in limited circumstances, an **Award can be challenged under the 1996 Act** * An Arbitrator is **not liable for negligence** if they acted in good faith, an Expert **can be liable in damages** for losses sustained through negligence

Answer 35

* When client would like to settle the dispute quickly * Cost considerations * Flexibility * When client wants confidentiality

Answer 36

**Lease Renewal**: * A **statutory** procedure governed by Part II of the L&T Act 1954 * Settled in **Court** or **PACT** **Rent Review** * A **contractual** procedure * Settled in accordance with the **terms of the lease**

Answer 37

Is a statement to emphasise that the parties must complete their obligations on time. * **Timing is material to the performance of the contract**

Answer 38

Improvements disregarded if carried out: * During **old tenancy** * **Less than 21 years before Court application**

Answer 39

* If Landlord succeeds under grounds (e), (f) or (g) (the **no fault grounds**) the tenant is entitled to compensation * **2 x RV for occupation of 14 years of more** * **1 x RV for occupation of less than 14 years**

Answer 40

A **specific order**, i.e, to: * **Keep in repair** - Tenant will commit a breach if the premises fall out of repair at any time * **Leave in repair** - Found in shorter leases * **Put in repair** - Tends to be when the property is in a serious state of disrepair * **Fair wear and tear** - A repairing covenant can be limited by the exception of dilapidations caused by 'fair, wear and tear'

Answer 41

Through a **Schedule of Condition** put in place at the beginning of a lease. To ensure effectiveness: * Must be **agreed between the parties** * **Signed** by the parties * **Referred to** in the lease * **Attached to the lease**

Answer 42

* If this provision is set out in the lease * Negotiations have stalled * You want an expert decision * There is limited comparable evidence * You want a quick resolution * You want confidentiality

Answer 43

* Depends on how temporary * More likely to be a **licence** or a **tenancy at will** if it is for a **very short period of time** * E.g, if you are letting a shop over the Christmas period, it is likely to be a licence if for a few weeks rather than a few days. Not a lease as you do not want to give **exclusive occupation** or **security of tenure** and becomes a more costly process than a licence or tenancy at will.

Answer 44

* Secondary legislation * The 2003 Order **simplified excluding security of tenure** from business leases, **removing the need for court approval**. Now, Landlord's serve a **health warning** notice, and tenants confirm they understand by signing a **simple declaration**. If the notice is **less than 14 days before signing**, tenants must make a **statutory declaration** instead. Key updates include: * **Section 40 Notices**: Parties can request lease and ownership details before renewal or termination (parties must respond within **one month**) * **Renewal Process**: 1954 Act now requires a Landlord to **include proposals for a new tenancy** in their Section 25 Notice. Additionally, **tenants are no longer required to serve counter notices in response to a Landlord's Section 25 Notice** (However, **Landlord must serve a counter notice in response to a Tenant's Section 26 within 2 months**) * **Interim Rent**: Either party can now apply for interim rent

Answer 45

Both Landlords and Tenants

Answer 46

**Primary legislation** * **Section 19** relates to Landlord's consent for a proposed **assignment or subletting** - consent is **not to be unreasonably withheld** * **Sections 1-3** give a tenant who has made **improvements** to a property during tenancy the **right to compensation**. This can occur even if **Landlord didn't consent**. But, there are lots of **preconditions** that have to be satisified to get compensation. In practice, it is **rare for a tenant to take all of steps required by the act when carrying out improvements to enable it to claim compensation** * **Section 18** serves to **limit the amount of damages a Landlord can claim for dilapidations to the diminution of value**

Answer 47

The core principals outlined in the code could influence the lease terms in the renewal of a lease. * Provides **best practice standards for lease negotiations** in England and Wales, focusing on **transparency and fairness** for all parties. Key principles include: 1. **Transparency and Fairness**: Parties should negotiate openly, with landlords required to **disclose lease terms clearly.** **HoTs must be documented in writing.** 2. **Minimum Standards for Heads of Terms**: HoT should cover **rent, length of lease, break rights, and any tenant incentives.** This ensures both parties have a **full understanding of key terms** before formal agreements. 3. **Professional Conduct**: Both landlords and tenants are **advised to use experienced, qualified representatives** to avoid conflicts of interest and ensure compliance with the Code. The Code promotes professionalism and seeks to create a fairer leasing process by setting a baseline for practices and disclosures.

Answer 48

**Land Registry prescribed clauses**: * Date of the lease * Title numbers * Parties to the lease * Property * Term

Answer 49

Leases **over 7 years**

Answer 50

Better for **cashflow**

Answer 51

Quarterly in advance

Answer 52

To ensure that **suitable insurance cover is maintained with a reputable insurer**

Answer 53

Make an **adjustment to reflect the benefit to the tenant of a lesser repairing obligation** compared to the comparables

Answer 54

* Insurance * Quiet enjoyment * Services

Answer 55

* Insurance * Repair & decoration * Service charge * Use * Alienation * Alteration

Answer 56

* Post review date evidence **is admissible** but with the caveat that **the further beyond the effective date for review the later evidence is, the less weight is likely to be attached to it.**

Answer 57

**Section 23** of the 54 Act defines 'business' as including a **trade, profession or employment**

Answer 58

To **protect the offeror party's interest on costs**

Answer 59

Calderbank offers are **not governed by the same strict set of rules as Part 36 offers.** This means **there is greater flexibility in terms of making the offer itself in the form of time limits for acceptance, payment and payment terms**. Also, unlike a Part 36 offer, **a Calderbank offer is usually made as inclusive of costs.** Another important thing to note is that the usual rules of contract law apply to Calderbank offers, whereas they don’t when it comes to Part 36 offers. * Part 36 is **open for acceptance for a period of not less than 21 days** - After this period, it can still be accepted but it is possible for the offer to be withdrawn by the party who made it

Answer 60

Tenant has until expiry date stated in the Landlord's notice to reply to maintain security of tenure - otherwise right to renew is lost

Answer 61

* By **negotiation** (this would be unusual) or **If the matter proceeded to arbitration or to court and one side has won**

Answer 62

**An offer** (made by one side to the other or by both sides to each other) **to compromise/settle a dispute at a figure made with the intention to reserve the offeror's position on costs**

Answer 63

No - not before the offer is made Yes - once the award is made and the parties have been unable to agree who should bear the costs of arbitration which the arbitrator must then decide

Answer 64

He receives **written reports & replies on costs from the parties**

Answer 65

**Arbitrators fees and expenses** **Fees and expenses of an RICS presidential appointment** **Legal or other costs of the parties**

Answer 66

**Be served on someone authorised to deal with the case** Clearly state the **rental (offer)** being made State a **date for acceptance which provides a reasonable time for the party receiving the offer to take advice and consider it** Stipulate the **conditions which apply if it is accepted** (e.g. **each side pay owns costs and 50% of arbitration fees**) Stipulate the **conditions which apply if it is not accepted in that timeframe** (e.g. **other side to pay all of arbitrators costs and all your sides costs**) State that **it is not a valuation it is a compromise offer to settle the dispute** Notify the other side that it will be **presented to arbitrator on issue of costs** **CALDERBANKS ARE BINDING**

Answer 67

- **Governance:** - **Rent Review:** Governed by the terms specified in the existing lease agreement. - **Lease Renewal:** Governed by the Landlord and Tenant Act 1954 and the Civil Procedure Rules. - **Valuation Date:** - **Rent Review:** Has a fixed valuation date as set out in the lease. - **Lease Renewal:** The valuation date is flexible and not fixed. - **Basis of Valuation:** - **Rent Review:** Determined by the rent review clause in the lease, which can vary in form. - **Lease Renewal:** Defined under Section 34 of the Landlord and Tenant Act 1954, offering a simpler and more rigid valuation basis. - **Scope of Negotiation:** - **Rent Review:** Only the rent amount is considered. - **Lease Renewal:** Considers rent, lease length, rent review patterns, and other lease terms. - **Rent Adjustment Direction:** - **Rent Review:** Typically allows for upward-only adjustments. - **Lease Renewal:** Can result in both upward or downward rent adjustments. - **Dispute Resolution:** - **Rent Review:** Disputes are usually handled by an arbitrator or independent expert; solicitors are not normally involved. - **Lease Renewal:** Involves solicitors and the court if a notice is served and a claim is made; however, parties can settle at any time and withdraw from court proceedings. - **Tenant and Landlord Positions:** - **Rent Review:** Tenant is contractually obligated until lease expiry; the landlord cannot secure vacant possession, and the tenant cannot exit the lease early without negotiation. - **Lease Renewal:** Landlord can oppose granting a new lease and seek vacant possession (subject to court acceptance of the grounds). The tenant can choose not to renew or can leave by giving three months' notice after the lease expires. - **Decision Factors:** - **Rent Review:** Parties are bound by the existing lease terms regarding rent adjustments. - **Lease Renewal:** Both landlord and tenant must decide whether they wish to enter into a new lease, with the new rental level often being a crucial factor in their decision.

Answer 68

**Calderbank**: When you are outside the formal litigation process, such as arbitration (rent review) **Part 36**: During litigation within the court system, to leverage the cost consequences outlined in the CPR (lease renewal)

Answer 69

No Since independent expert determinations **are not bound by the same procedural rules** as courts or arbitrations, and they **don't usually have the authority to award costs based on settlement offers**, using a Calderbank offer **would not have the intended effect**

Answer 70

Refers to assumptions made for valuation purposes, creating a notional scenario to **assess rent objectively**. Standardises variables like lease terms and tenant obligations, ensuring that **the valuation reflects the property's open market rental value without being influenced by the actual tenant's circumstances**

Answer 71

* **Rent Review Dates**: Specifies dates when rent is to be reviewed * **Review Mechanism**: Method for determining the new rent, often **based on open market rental value** * **Assumptions and Disregards**: Conditions to be assumed or disregarded during valuation (e.g. property in good repair, excluding tenants improvements) * **Dispute Resolution**: Procedures if parties cannot agree, such as **arbitration or expert determination** * **Upward-Only Provisions**: Clauses **ensuring rent cannot decrease at review**

Answer 72

Yes, if a tenant **does not wish to renew a protected business lease** under the 54 Act, they **must serve a Section 27 notice giving at least 3 months' notice** to terminate the tenancy at **the lease's end or after it has continued beyond expiry**

Answer 73

* **Lease Renewal**: A schedule of condition can be **attached to the new lease to limit the tenant's repairing obligations to the property's condition at the start of the renewal term** * **Rent Review**: The schedule **may influence the rent** if the lease stipulates that the property's condition affects rental value, though typically, assumptions in the rent review clause may neutralize its impact

Answer 74

Disclosure is the **legal process of exchanging relevant documents between parties in a dispute**. It's crucial during litigation or arbitration to ensure transparency and fairness, allowing each side to **review the evidence that may effect the case outcome.**

Answer 75

While the primary focus is on evidence up to the valuation date, **post-dated evidence can be considered if it reflects market conditions as of that date**. It should be used cautiously and **adjusted to account for any changes in the market after the valuation date**

Answer 76

* **Rent Review**: Each party generally bears their own costs unless the lease states otherwise * **Lease Expiry/Renewal**: Costs are typically borne by each party. However, if court proceedings are involved, the court may order one party to pay the other's costs, depending on the outcome

Answer 77

* **Future Development Plans**: The landlord needs certainty of possession for redevelopment * **Short-Term Occupations**: For temporary tenants or pop-up stores * **Requirement of the headlease**: To grant any subleases outside the 54 Act * **Strategic Control**: The landlord wants flexibility over property use or tenants This requires following the correct procedure to contract out of the Act's provisions (Section 38a)

Answer 78

Local County Court

Answer 79

Depends on market conditions * If rent likely to go up, would advise delaying sending the notice * If rent likely to go down would advise serving a S26

Answer 80

* **Without Consent**: Since the tenant did not obtain the landlord's consent, the improvements will be taken into consideration * **Valuation**: Include the value of the unauthorized improvements in the rental assessment, as per the lease terms.

Answer 81

Is the rent payable **during the period between the expiry of a protected business lease and the commencement of a new lease when renewal is in process**

Answer 82

**Either party** pending the outcome of the **application for a new tenancy**

Answer 83

Interim rent is **only payable where a party has made an application to the court for an interim rent** to be determined and that application can be made **any time after a S.25 or S.26 notice has been served**

Answer 84

From the earliest date that could have been specified in the S.25 or S.25 notice **(the expiry of the contractual term of the tenancy)**

Answer 85

**The same rent as the rent agreed for the new lease**

Answer 86

After serving a **S25 notice (6-12 months before lease end)** Propose interim rent based on **current market value** Negotiate with the tenant If no agreement, **apply to the court** for determination (with new lease application)

Answer 87

No They are **mutually exclusive** However, either party could serve a notice if the other notice has not been served correctly and is therefore invalid

Answer 88

S.32 - **Property to be comprised in the new tenancy** S.33 - **Duration of the new tenancy** S.34 - **Rent under the new tenancy** S.35 - **Other terms of new tenancy** S.37 - **Compensation for an opposed lease renewal** (only applicable for one of the non-fault grounds)

Answer 89

Suggests that a tenant's break option should only be conditional on **paying all basic rent** (excluding service charge and insurance) up to the break data and **giving up occupation**, with no subtenants or other occupiers remaining. This differs from requiring "vacant possession" and "all rents" (including service charge and insurance), which can be more complex and subject to litigation. This approach simplifies the process, **ensuring fair conditions that make it easier for tenant to meet break requirements** without disputes.

Answer 90

**Landlord Considerations** * **Engage** with the tenant **early** * Put measures in place to **manage the tenant exit** * Be alert to the **tenant remaining in occupation beyond the expiry date** **Tenant considerations** * **Engage** with the landlord **early** * Allow time to **find and effect a location**, taking into account continuity of trading and possible dilapidations issues

Answer 91

**Early consideration is key** **Identify grounds for opposition** (will need to specify and satisfy the conditions as per S.30) **Assemble supporting information** **Devise and implement a strategy**

Answer 92

**Early consideration is key** * Be alert to obvious threats to non-renewal (has a planning application gone in?) **Serve a S.26** to force the landlord's hand * **Consider relocation options** * Grounds for **resisting a landlord's opposition to renewal** * Devise and implement a strategy

Answer 93

* **Monitoring role** * Contribute from a surveyors perspective on **clauses that might affect rental value**

Answer 94

**Expert Witness**: Someone who presents **evidence to a judicial body** (such as an independent expert) * **Primary duty is to the tribunal** (to the independent expert, arbitrator or the court) * Must be **unbiased, independent, within expertise, experience and knowledge, truthful, not omitting material facts, no performance related fees** Or **Advocate**: * **Duty to your client** (plus duty to the **tribunal to act properly & fairly**) * Advance your case by all **fair and proper means** * Not allow your **integrity of professional standards be compromised** * **Not** deceive or mislead the tribunal or opposing party * **Should not offer an opinion**

Answer 95

Yes, as long as they make the **declaration** (as per RICS Practice Statement and Guidance Note: **Surveyors Acting as Expert Witnesses**) and understand their **obligations and duty to the tribunal** and **not their employer** (from case law - **Field v Leeds CC**)

Answer 96

**Depends on who you're acting for** If comparable evidence relates to historic completed lettings in a **better market**, a landlord might prefer an arbitrator. Tenant would likely prefer independent expert who can take into account their expertise on the **extent to which the market has declined**

Answer 97

1. **Case management conference/pre/trial review** (telephone, video call) - procedural timetable agreed 2. **Trial** - Cases presented and **Court makes an Order for a new tenancy** (surveyors should ensure familiarity with any deadlines and requirements) 3. **Costs** - Discretion of the trial judge 4. **Cooling off period** after offer is made - tenant has the **option not to renew** on the terms ordered

Answer 98

Primary purpose: * To afford a party to proceedings some **protection on the issue of costs** Secondary function: * A useful **negotiating tool** that can help to focus attention on a **possible settlement**

Answer 99

I will always defer to solicitors for their advice on whether its best to serve a Calderbank offer or a Part 36 offer Would not attempt to draft it myself - may not be covered by PII insurance

Answer 100

* A lease which has been **validly excluded from the protection of the 54 Act** * A tenancy granted for a term certain **not exceeding 6 months** * **Tenancy at will**

Answer 101

**Civil** **CPRs & BPRs is a *criminal* offence**

Answer 102

This agreement gives the agent the **right to the selling fee** as long as someone is clearly ready, willing and able to buy your property – even if the sale doesn't go through.

Answer 103

When a number of individual estate agents are instructed to sell a property. **Only the agency who introduces the purchaser who proceeds to exchange is able to submit a fee account**