Landlord & Tenant Flashcards
What is the Landlord & Tenant Act 1927?
It sets out alterations may constitute improvements. It provides compensation for improvements.
What is the Landlord & Tenant Act 1954?
It provides security of tenure to business tenancies.
What is a section 25 notice?
It is a landlord’s notice to either renew or oppose a new lease.
What is a section 26 notice?
It is a tenant’s notice to request a new lease.
What is a section 27 notice?
It is a tenant’s notice they will be vacating at lease expiry.
what is section 28?
It states that if a new lease is agreed in the future, the current lease loses it’s security of tenure.
What is section 30?
It sets out grounds for a landlord to oppose a new lease.
What are the 7 grounds to refuse a new lease under section 30?
a) A breach in repairing covenant
b) persistent delays in payment of rent
c) Other substantial breach of other clause
d) Landlord providing suitable alternative accommodation.
e) uneconomic sub-division
f) demolition / reconstruction
g) Landlord to take possession
What is section 29?
order by court for a new tenancy.
What is section 38A?
Contracting outside the Act.
What is section 40?
request for information.
What are the four usual assumptions for a rent review?
- Property available to let on open market by a willing landlord and tenant for a term of years stated.
- Property is fit and available for immediate occupation and use.
- All covenants observed by landlord and tenant
- Property can be used for what is set out in lease
What are the three usual disregards?
- Any goodwill on the tenant’s occupation.
- Any goodwill attached to the property
- tenant improvements
What is the ‘notional term of the lease’?
The length of term to be valued (hypothetical lease)
What is time of the essence?
It is a condition in a rent review clause that requires it is carried out in a set time period.
What is the Hierarchy of Evidence?
It is the weighting attached to different types of evidence.
List the Hierarchy of Evidence.
- Open Market Letting
- Lease Renewal
- Rent Review
- Independent Expert
- Arbitrator
- Court determination
etc…
What is a Calderbank offer?
It is a without prejudice save to cost letter to resolve a dispute early.
What is an independent Expert?
A third party determination.
Has detailed knowledge of the market.
Uses their own expertise to investigate matter to find a resolution.
What is an Arbitrator?
Appointed by RICS president through the ADR service. Examines evidence provided by both parties to come to a result. Cannot be sued for negligence.
What is the difference between an arbitrator and independent expert?
Arbitrator examines evidence provided, where as Independent expert comes to conclusion through own investigations.
Independent Expert can be sued for negligence but arbitrator is limited.
Arbitrator outcome is called an award, independent expert is called a determination.
How do you analyse rent free periods?
Review comparable to determine market norm.
Analyse the total rent of the term certain, minus the rent free period and calculate net rent per year.
What is good will?
An increase in the value of the property due to the increased clientele or profitability from tenant occupation.
If the rent review provision is silent on hypothetical term, what term would you value?
Unexpired residue of term.
Basingstoke & Dean Borough Council V Host Group 1987
How do you treat tenant improvements at lease renewal?
You disregard them for 21 years.
What is classified as an improvement?
Generally accepted at improving letting value at time.
When can an improvement be a disadvantage?
When the improvement takes up letting space, such as aircon system.
What key law case is there for Lease Renewals?
O’May v City of London Real Property Ltd 1983
Lease terms should be similar to previous unless deemed fair and reasonable.
Why would you contract outside 1954 Act?
LL = Greater flexibility
T = Reduced rent
What is the impact of not marking communication as without prejudice and/ or subject to contract?
Can be deemed as an offer
What are the key elements of a Calderbank offer?
Genuine offer to settle
Limited timeframe
Market without prejudice and save as to cost.
What are the key elements of a Part 36 offer?
Written offer to settle
Open for 21 days
service by solicitors
Why is a section 40 used?
request for information. To find out who the competent landlord is to serve notice.
How long does the party have to respond to a S.25 / 26?
2 months
What are two types of break options?
Conditional
Unconditional
When acting for a tenant on expiry when would you pay rent up until?
I would read lease.
