Landlord & Tenant Flashcards by Sophie Crockett

What are some of the matters you have dealt with in relation to landlord and tenant law?

Lease renewals & rent reviews

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What is your understanding of rent review negotiations?

I understand that rent reviews are governed strictly by the lease.
Can be OMV or RPI or higher of.
Usually upwards only.

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How important is the Landlord and Tenant Act (1954) in the lease renewal process?

Extremely important - Part 2 of the 1954 Act governs the whole process.

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Can you expand on the role of Section 30 of the Landlord and Tenant Act (1954) in lease renewals?

Section 30 refers to the basis in which a LL can oppose a new tenancy.
A - Breach of repairing covenant.
B - Consistent non-payment of rent.
C - Other substantial breach.
D - Provide suitable accommodation
E - Uneconomic subdivision
F - Redevelopment
G - Owner occupation

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Which of s30 options are eligible for compensation?

E-G
Occupation less than 14 years - 1 x rateable value
Over 14 years - 2 x rateable value

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Can you describe the procedure for a rent review?

Receive instruction, check competent, check for conflicts and confirm fee.
Request legal pack
Read lease - time of the essence? RR clause, assumptions & disregards
Undertake inspection & measurement
Comparables
Written recommendations
Serve notice on tenant
Negotiate
Agreement RR memo.

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What assumptions and disregards must be acknowledged during a rent review?

Check the lease but usually:

Assumptions - vacant possession, fit and ready for occupation, available to let between willing LL & T, tenant has fulfilled lease obligations.

Disregards - goodwill, adverse effect on value from neighbouring temp works/operations, tenant fitout that has been documented.

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How do you understand the different methods of dispute resolution in landlord and tenant matters?

Usually stated in the lease - Independent Expert or Arbitrator.

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What are the responsibilities of an independent expert in L&T disputes?

Undertake their own investigation and use their knowledge and experience to reach a decision.

They then reach a determination which binds the parties.

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Can you elaborate on the differences between an independent expert and an arbitrator?

A - governed by Arbitration Act 1996, IE - governed by the lease
A - use each party’s proposal, IE - own knowledge/experience
A - award between the offers, IE - determination based on opinion
A - limited right of appeal, IE - no right of appeal
A - can’t be sued for negligence, IE - can be sued

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In your experience, what are some of the challenges you encountered in RR/lease renewals and how did you overcome them?

Agreeing rents / certain terms - negotiate
Understand client’s musts and nice to haves.

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What specific strategies did you use in negotiating the lease renewal on behalf of your client?

Ensure to maintain a collaborative approach as the longevity of the LL & T relationship is important.

Ensure I understand their objectives - musts & nice to haves.

Undertake market research to ensure I have a strong opening position.

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What were the implications of the tenancy being agreed outside of the Landlord and Tenant Act 1954?

The tenant does not have security of tenure / the automatic right to renew the lease.

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What is S24 of LTA 1954?

Tenants right to hold over.

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What is S25 of LTA 1954?

Termination of current lease by LL.
Hostile - no renewal (s30)
Non-hostile - renewal

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What is S26 of LTA 1954?

Tenant’s request to renew lease.

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What is S27 of LTA 1954?

Tenant’s notice to quit - at least 3 months before.

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What is S28 of LTA 1954?

Agreement of new tenancy

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What is S29 of LTA 1954?

Timescales for application to court
e.g. tenant’s application after receiving s25 notice.

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Can you describe the process for finalising the Heads of Terms for the lease renewal?

Draft HOTs as per agreed terms.
Send to other party for review.
Confirm contact details for tenant and their solicitor.
Once finalised, send to solicitors.

How did you determine the rent review mechanism for the industrial unit in Driffield?

Checked the rent review section in the lease.

What was the significance of the rent review being upwards only and linked to the uncapped Retail Price Index (RPI)?

The increase in rent is only down to RPI and not reflective of market movements.

What methods did you use to research the base and index RPI figures?

ONS

How did you calculate the reviewed rent based on the RPI figures?

I sourced RPI figures for October 2020 and October 2023.

Multiplied passing rent but current RPI figure. Then divided by previous RPI figure.

What steps were involved in settling and formally documenting the rent review?

Agreeing final rent and then issue a RR memo.

How did you collaborate with your supervisor and the tenant's surveyor during the rent review process?

I collated the inputs and undertook the calculations which were reviewed by my supervisor. I then contacted the tenant's surveyor, cc'ing my supervisor in, to agree the increase.

What steps were taken to confirm the tenancy was inside the Landlord and Tenant Act 1954?

Checked the lease.

What information did the section 25 non-hostile notice contain?

Landlord & Tenant Details Premise Notice of renewal - to oppose or not Proposal - new rent, term, any changes to existing lease. Date of new tenancy Statement on Tenant's right to respond Signature.

What factors did you consider when analysing the data on rental market evidence?

Condition Spec Location Size Incentives RR mechanism

How did you create an accurate report of your findings to the client?

Verified information with agents and lease.

What negotiation tactics were used to reach an agreement on the Market Rent?

Collaborative but also went in slightly higher than Client's goal.

Can you explain the functions of the green clause in the lease terms?

Purpose of green clauses are to promote sustainability. Includes not undertaking works that would negatively impact EPC. Providing energy data for annual GRESB collection. Obtain a renewable energy contract. Nothing financially onerous on the tenant.

What steps did you undertake to ensure competence in proceeding with the rent review in Rugby?

I considered previous tasks I had completed and whether this was similar. Discussed with line manager.

What assumptions and disregards were detailed in the lease for the rent review?

Assumptions: - Fit and ready for occupation. - Available to let by a willing LL to a willing T. - Vacant possession - Tenant obligations fulfilled. - RF OM benefits. Disregards: - Goodwill - Tenant fit out (if documented) - Adverse effect on RV due to neighbouring temp works/ops.

What safety measures were taken during the inspection of the property, in reference to RICS Guide to Surveying Safely Guidance?

Risk assessment - hazards, risk level PPE Lone working - informed team of whereabouts Communication

What does the RICS LTA Guidance Note 2013 mention?

Importance of dealing with matters without delay. Ensuring that a License is completed to protect both parties. License must clearly document works agreed.

What is Privity of Contract?

Pre 1995 leases, all tenants were responsible for the obligations under the lease, even if they had assigned/sublet. LTCA 1995 removed POC.

What is an Authorised Guarantee Agreement?

LL can guarantee assignee with assignor. Assignor is released at lease expiry / subsequent assignment.

When can a LL refuse assignment?

Usually when covenant is weaker or assignee doesn't pass profits test. LTCA Act 1995.

How can a LL forfeit lease?

Serve a notice under s146 of Law of Property Act 1925 - specifying breach.

When was the Landlord and Tenant Act 1954 last amended?

2004 - Regulation Reform (Business Tenancies) (England & Wales) Order 2003)

What tenancies does the 1954 Act apply?

Business

Explain when tenant’s improvements are disregarded at lease renewal.

When a LTA has been completed.

Explain what action a tenant should take if there are 6 months of the lease remaining and he/she wants to vacate at expiry. The landlord has not served a Section 25 Notice

Serve a s27 notice at least 3 months prior to lease expiry.

What are the key elements of a rent review clause?

Assumptions, Disregards, Mechanism, Hypothetical Term.

What is a “trigger notice”?

Initiate lease renewal discussions - s25, s26.

What do you understand by the expression “time of the essence”?

If time is of the essence, an obligation must be complete on time. Generally accepted time is not of the essence unless specifically stated.

Which case is related to time of the essence?

United Scientific Holdings Ltd v Burnley Borough Council

Name a case law about defining a lease

Street v Mountford - the rights created not just the name of the agreement.