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RICS APC 2025 > Landlord & Tenant > Flashcards

Landlord & Tenant Flashcards

1
Q

How would you calculate an RPI increase?

A

Always Read the Lease!
= Annual Rent x RPI month before increase / Base RPI

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2
Q

What is the difference between the different indexes?

A

RPI = A measure of inflation in the UK to track the average change in prices of goods and services purchased by most households - now an unofficial statistic - includes mortage interest payments
CPI = Same as RPI but takes no account of housing costs
CPIH = Consumer Price Index Inc. Owner Occupiers Housing Costs - Same as RPI but doesnt include mortgage interest payments , uses Rental Equivilance

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3
Q

What are the different rent review methods for FBTs?
(4)

A
  1. Open Market Value
  2. Fixed Increase
  3. Index Linked
  4. Turnover Linked
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4
Q

What does the LTA 1954 set out?

A

Part I = Residential - security of tenure, RR and eviction procedures
Part II = Comemrcial - S.24-28 (security provisions)

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5
Q

What are the Statutory Grounds for Possession under the LTA ‘54
S.30(1)
7

A

Fault-based ground (Tenants Conduct)
a.) Tenants failure to repair
b.) Persistent delay in paying rent
c.) Other breaches of lease obligations
d.) Alternative accomodation available

Non-fault grounds (Landlords Interest)
e.) Sub-letting part of premises
f.) LL intends to redevelop
g.) LL intends to occupy

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6
Q

What did the Law of Property Act 1925 set out?

A

Modernised and streamlines english property law and conveyancing
Created freehold and leasehold interests - S.1

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7
Q

What did the Land Registration Act 2002 set out?

A

All unregistered land to be registered when transferred, mortaged ot leased over 7 years
Governs all Titles and Title Deeds

1990 December 1st - Under LRA 1925 - complulsory registration

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8
Q

What was the purpose of the Rent (Agriculture) Act 1976?

A

To provide security of tenure to qualifying agricultural workers housed by employers
Protects tenants where tenancies were granted prior to 15th January 1989
Removes succession rights for tenancies granted after 12th July 1984

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9
Q

What is a qualifying worker under the Rent (Agriculture) Act 1976?

A

An agricultural worker who must have worked in agriculture for a minimum of 91 out of the preceeding 104 weeks

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10
Q

How can you remove the security from the Rent (Agriculture) Act 1976?

A

By serving a Form 9 prior to the tenancy agreement, creating an AST

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11
Q

What are the key principals of the Rent Act 1977?

A
  • Rent regulation - approved by Rent Officer for ‘Fair Rent’
  • RR1 Form - Application to Rent Officer for ‘Fair Rent’ increase
  • Form 1 - LL notice to tenant of increase
  • Security of tenure - fixed term ends. becomes statutory
  • Succession - spouse / civil partner who was living in the property
  • Schedule 15 = mandatory and discretionary cases for termination of tenancy

Tenancies granted before 15th January 1989

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12
Q

What are the Madatory Grounds for Possession under Schedule 2, Section 8 of the Housing Act 1988?

A
  1. Owner occupier
  2. Repossession
  3. Holiday let
  4. Student let
  5. Required for Minister of Religion
  6. Redevelopment
  7. Death of tenant
    7a. Anti-social behaviour
    7b. No right to rent
  8. Serious rent arrears (2 months)
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13
Q

What are the Discretionary Grounds for Possession under Schedule 2, Section 8 of the Housing Act 1988?

A
  1. Alternative accomodation available
  2. Rental arrears
  3. Persistent delay in paying rent
  4. Breach of tenancy obligations
  5. Deterioration of property condition
  6. Nuisance, annoyance
    14a. Domestic violence
    14b. Offence during a riot
  7. Deterioration of furniture
  8. Employee of LL
  9. Tenancy obtained by false statement
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14
Q

What are the key principles of the Housing Act 1988?

A
  • Reduced rent control, no gov. intervention
  • Introduced ASTs & ATs
  • Eviction notices under S.8 & S.21
  • Reduced / eliminated security of tenure

Tenancies after 15th January 1989

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15
Q

What are some typical HoTs?

A

SUBJECT TO CONTRACT
1. Property address / description
1. Parties
1. Parties solicitors
1. Rent
1. Term
1. Lease type
1. Repairing obligations
1. Rent review clause
1. Break clause
1. Permitted use

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16
Q

ASTs & ATs
The Housing Act 1988

A

Tenancies after 15th January 1989

AST = Minimum term of 6 months, more than 3 years it is considered a lease and requires a deed
Rent: £250 - £100k p.a.

AT = Landlord has no right to automatically regain possession upon expirey of the fixed term
Greater security for tenant

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17
Q

What are the differences between a lease and a licence?

A

Street vs Mountford 1985

A lease grants exclusive possession, creates a legal interest in the property, is for a fixed term, rent and is goverened by legislation

A licence is non of these things and is paid for by a licence fee

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18
Q

What is a S.25 Notice under the AHA 1986?

A

Notice to Quit

LL can serve NTQ under s.25 at least 12 months before anniversery date

Tenant can serve S.26 counter notice within 1 month

Then referred to First-Tier Tribunal who take into account conditions within S.27(3) e.g. good husbandry, sound management, non-ag use etc

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19
Q

What are the differences between an AHA and an FBT?

A

AHA has security of tensure, 2 succession rights, prescribed covenants, lower rent and different RR method

FBT has no security, no succession, fixed term, freedom of contract, open market rent and agreed RR method

Both rents can be reviewed every 3 years

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20
Q

What are the Cases for Possession under the AHA 1986?
(11)

A

Schedule 3

a.) Affecting small holdings affecting local authority LLs
b.) Land required for non-ag use, planning permission required
c.) Bad husbandry
d.) Non-payment of rent or remedy breach of other obligation
e.) Irremediable breach, holding materially prejudiced
f.) Insolvency
g.) Death with no successor or rights left
h.) Secretary of State to allow for amalgamation of units

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21
Q

What are the Security Provision of the LTA 1954 Act?

A

S.24-28

24 - Right to renewal and continuation of tenancy
25 - Landlords notice to end tenancy, propose new lease - 6/12 months before expiry or oppose tenants request for new lease (uS.30(1)) within 2 months of S.26
26 - Tenants request for new tenancy - 6/12 months in advance
27 - Tenants right to terminate tenancy
28 - L&T agree a new lease in future thereby removing security provisions

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22
Q

AHA 1986 - Rent Review

A
  1. Review market - comodity prices and comps - size, topography and tenancy
  2. Speak to client
  3. Serve S.12 Notice - 12/24 months with evidence of postage - rent referred to Arbitration
  4. Review market - 3 options - do nothing / re-set 3 year clock - open negotiations - reserve S.12
  5. Arbitrator - apply to RICS - appointed by RICS - could use independent expert but no legally binding as per Deregulation Act 2015
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23
Q

What is a S.1(4) Notice?

A

States the tenancy is and will remain to be an FBT under the ATA 1995

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24
Q

How is rent determined for an AHA 1986 tenancy?

A

“Rent which the holding might be expected to be let to a prudent and willing tenant by a prudent and willing landlord, farming competently a system suitable for the holding”

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25
What is taken into account for an AHA 1986 rent / review?
1. Tenancy terms 1. Character and situation 1. Productive and related earning capacities 1. Current rent levels for comparable holdings
26
ATA 1995 / FBT Rent Review
* S.10 Notice served - 12/24 months prior * Reviewing in accordance with lease / open market value * As with AHA 1986, tenants improvements are disregarded * No upwards only rent reviews * Mainly dictated by lease terms and comps * Standstills agreed for one year, unless notice not served
27
What does it mean when a tenancy is 'Holding Over'?
The tenant continues to occupy the property after their lease has legally expired
28
What is a Tenancy at Will?
Either the landlord or the tenant can end the arrangement at any time, without notice, by giving immediate notice No legal interest and no renewal
29
How can a tenancy be contracted out of the security provisions of the LTA 1954 Act?
By serving a simple or a statutory declaration Simple = where the parties have 14 days or more prior to signing the lease Satutory = where the parties have less than 14 days prior to signing the lease. Tenant must sign in presence of an independent solicitor
30
How does an FBT of 2 years or less end?
With the effluxion of time Expires at the end of the fixed term
31
What notice is served to terminate an FBT with a fixed term longer than 2 years?
S.5 Notice 12 months notice
32
What notice is served to terminate an FBT with a fixed term less than 2 years or one that is rolling on?
S.6 Notice 12 months notice
33
What form is served for a RR under a Rent (Agriculture) Act 1976 Tenancy?
RR1C
34
How many successions are permitted under a Rent (Agriculture) Act 1976 Tenancy and to who?
One * Spouse / civil partner * Cohabitee * Member of family
35
When is a tenancy an AT?
If granted after 15th January 1989 but before 28th Februrary 1997
36
What is a Calderbank offer?
A written offer marked with ‘without prejudice subject to costs’ Reserves the right to bring the offer to attention of the courts on the question of costs
37
Do you use the 2015 Model Clauses in an FBT?
Only if the TA mentions them
38
What notice is served for a RR in an ATA 1995?
Section 10 12 months in advance
39
What are the qualifying conditions of an Agricultural Tenancies Act 1995?
Must be granted on or before 1st September 1995 All or part of the land is farmed for the purpose of a trade or business Character of the TA is wholly agriculture
40
Can an AHA to a company end?
No - an AHA to a LTD company lasts in perpetuity
41
What eligibility tests does a succession applicant have to pass AHA 86?
Surviving close relative Principle source of livelihood Commercial unit test (being removed as of 01/09/2024)
42
When must an application for succession be made under an AHA 86 tenancy?
Within 3 months after the date of death
43
How many successions are permitted under an AHA 86?
Two successions
44
When do succession rights apply in an AHA 86?
Only apply to tenant of ag holdings before 12th July 1984 - none after
45
What are the incontestable Notices to Quit an AHA 86?
Age - Retirement Barn - Non-ag use, needs planning Crap crops - Bad husbandry Debt - Failure to pay rent Finance - Insolvency Irremediable breaches Grave - Death to be served 3 months within notice if death HMRC - Ministry of amalgamation
46
How would a LL serve a Notice to Quit on an AHA 86 tenancy?
By serving a S.25 notice giving 12 months notice
47
48
How would a tenant serve a counter notice to a Notice to Quit given by the LL in an AHA 86 tenancy?
By Serving a Section 26 notice
49
Which Model Clauses are used if the TA references ‘1973 Model Clauses and future amendments’?
Use 2015 Model Clauses
50
What is the RR formula for an AHA 86 RR?
Assumed to be let to a competent tenant by a prudent willing LL Terms of the tenancy Character and situation of the holding Productive capacity of the holding Related earning capacity Comparable lettings
51
Explain the Arbitration Act 1996
Rent is determined at the date it is payable not the date arbitration is awarded
52
Which Notice do you serve for a RR under an AHA 86 tenancy?
Section 12 - must be served 12 months in advance of the review date
53
What must a Section 12 Notice include for an AHA 86 tenancy?
Name of holding, landlord details, tenant details and date
54
55
How often can the rent be reviewed under a Rent Act tenancy?
Every 2 years Unless there a significant changes to the property that impact value Tenants improvements and scarsity are disregarded
56
LTA 1985
Focuses on the rights and responsibilities of landlords and tenants in residential property. It sets minimum standards for tenant protections and defines landlord obligations, particularly regarding repairs
57
What does S.11 of the LTA 1985 detail?
A landlord's main repairing obligation is under section 11 Landlord and Tenant Act 1985. Section 11 requires landlords to make repairs to the structure and exterior, as well as to installations such as boilers, pipes and electrics
58
What does a Form 9 do under a Rent (Agriculture) Act 1976 tenancy do?
Does not convert the tenancy to an AST States that the agreement is an AST and will remain as such
59
How do you catergorise maintenance works?
Urgent = Poses H&S risk to tenant - ASAP - broken banister, loose step / slab, broken window Important = Poses no risk but requires attention - 1 month - broken gutter, slipped tile Neccessary = A 'nice to have' = 6-12 months - carpets, decoration, patio, kitchen etc
60
What are some tenant repairing obligations in an AST?
Limited Replace lightbulbs Report maintenance issues to LL Keep property clean
61
What is the risk of a commercial tenancy 'Holding Over'?
Can create a new, implied tenancy that then has protection under the security provisions S24-28 under the LTA 1954
62
Why did you create a lease for the encroachment at Pudding Bag Lane and not a licence?
A more formal agreement The neighbour had already erected a fence, thereby removing access to my client and creating exclusive possession of the land. If a licence had been granted, it would be defined as a lease as per the precedent set by Street v Mountford
63
How was the lease renewed at Broad Street under the provisions of the LTA 1954?
It wasnt, as the previous tenancy had been contracted out. But if it had not been, a S.25 notice would have been served on behalf of my client between 6 and 12 months prior to the expiration of the term.
64
Doesnt S.11 of the LTA 1985 only apply to residential tenancies?
Yes it does. I must admit this was a clerical error on my part, however i do know that my clients commercial leases state the LL is required to provide adequate heating provisions for new tenancies. These leases are usually FRI but my client prescribes certain changes to allow for greater control and safety of the units. I understand that there is no specific legislation that covers this and that it always depends on the contents of the lease.
65
Was the properties EPC not already compliant?
No it wasnt, it had an exemption in place, but the EPC expired before the exemption which nullified the exemption, requiring a new EPC. Due to the potential EPC changes, i advised my client agaisnt lodging another exemption.

RICS APC 2025 (18 decks)

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