Landlord & Tenant Flashcards
What is the relevant legislation around Landlord and Tenant
Landlord and Tenant Act 1954
Describe the Landlord and Tenant Act 1954
The Landlord and Tenant Act 1954 is a key piece of UK legislation that governs commercial tenancies (not residential ones). It provides important protections for tenants while balancing the rights of landlords.
What is the difference between a lease and a licence?
3 main differences
1) a lease provides an occupier with an estate in the relevant land - a licence is a permission to make it lawful for them to use the land
2) A lease can be assigned - a licence is normally a personal right that cannot be assigned
3) A lease cannot be terminated until it expires (or a break clause) - a licence can usually be revoked at any time.
Please tell me the main clauses a lease that contribute towards value? (in order)
- Tenant details / covenant details
- Term
- Rent
- Break clause
- Rent review
- Repairing
- Alienation
- Protected by L&T act
What are the Mechanisms or statements that must be made to exclude a lease from The Act.
- Statutory declaration
- Simple declaration
What does inside the act mean? How does this impact value?
The tenant has a legal right to renew the lease under the Landlord and Tenant Act 1954, providing security of tenure.
Gives the tenant more power at lease negotiations.
What is Adverse Possession
What are the timeframes for claiming adverse possession?
Process by which a person, who is not the legal owner of the land, can become the legal owner through possession of the land for a specified period of time, without the owner’s permission.
Timeframes:
- If land is registered, 10 years.
- If land is not registered, 12 years.
What does Section 24 of the Landlord and Tenant Act 1954 cover?
Security of tenure provision and continuation of tenancy - Holding over under the Act
A fixed tenancy will not come to an end if the tenant remains in occupation for business purposes, it will automatically continue on the same terms until it is terminated in accordance with the Act.
What is Section 25 of the Landlord and Tenant Act 1954?
Landlord’s notice to end the lease or seek a new lease - no more than 11 months and no less than 6 months before the date of termination.
Must include:
- Name and address
- Notice of date to end tenancy
- confirmation if a new lease is to be opposed or granted
What is Section 26 of the Landlord and Tenant Act 1954?
- Tenant’s notice to seek a new lease
- If landlord opposes this, a counter notice must be served within 2 months
What is Section 27 of the Landlord and Tenant Act 1954?
**Tenants* notice to end the lease - 2 ways
1) Tenant can simply vacate by contractual expiry
2) Serve a Section 27 notice on the landlord giving them 3 months Notice
Note - the tenant has no obligation to the landlord that they intent to vacate - there is no requirement to serve a S27 notice.
What is Section 38a of the Landlord and Tenant Act 1954?
Contracting outside the Act
What is a rent review?
A rent review is a clause in a lease that allows the rent to be adjusted at set intervals
What are common rent review mechanisms?
- Open market rent review
- Indexation (RPI or CPI with caps & collars)
- Turnover rent
- Stepped increases
What is RPI?
Retail Price Index - a measure of inflation based off of the rising price of a ‘basket of goods’ over time e.g. Food and Drinks also considers mortgages rates
What is CPI?
Consumer Price Index - a measure of inflation based on goods and services over time e.g. Food and Drinks does not consider housing costs
RPI vs CPI Index - Which is more accurate?
CPI - More modern measure of inflation
What are the four usual assumptions for a rent review?
- Property available to let on open market by willing tenant to a wiling landlord
- Property is fit and available for immediate occupation and use
- All covenants observed by landlord and tenant
- Property may be used for purpose set out in the lease
What are the three usual disregards within a rent review?
- Tenant improvements
- Goodwill attached to the property
- Goodwill on tenant’s occupation
What is a party wall boundary?
‘A dividing line between two properties where a shared wall or structure exists’
