Landlord & Tenant Competency Questions Flashcards
Please could you outline what a S26 notice is?
Please could you outline what a S27 notice is?
What are the timings and processes for these notices?
Please could you talk me through the process of serving the notices?
What are the differences between a lease and a licence?
Why might you have a licence as opposed to a lease?
Please can you talk me through the Northampton lease renewal?
- Received the instruction from the Client which was via a cross selling opportunity
- Ensured i was competent and undertook a conflict of interest check
- Agreed Terms of Engagement which were signed and returned
- Met with the Client to discuss their objectives who outlined that they wanted to renew their lease
- I read the lease and undertook a lease review
- I identified the lease was contracted inside the Landlord and Tenant Act 1954
- I inspected and measured the property on a NIA and IPMS 3 Office basis
- I searched for comparable evidence and determined an Opinion of Market Rent
- I provided a recommendation report to the Client where i outlined that the Property was currently overented.
- I informed the Client that this would be an advantageous position for the Tenant and the early service of a S.26 notice could enable them to achieve this faster.
Why did you encourage the service of a Section 26 notice?
As i had identified that the office suite was currently over rented i considered that it was in my clients best interest to serve an early S.26 notice
How did you identify that the lease was contracted inside the Act?
I identified that the lease was silent and didn’t mention the L&T Act therefore the provisions of the Act apply
If the lease was to be contracted outside of the Act what would the provisions be for this?
This would follow the procedures set out in 38A of the Landlord & Tenant Act 1954
The LL has to serve a notice to the Client warning that the lease will not be protected - health warning
The tenant must make a simple or statutory declaration in response confirming they understand and accept
For Protection under the Act what other provisions must apply?
Under S.23
- It is a tenancy
- Premises must be used for business
- Must be occupancy for more than 6 months
- Must be a competent LL
Hemel Hempstead - what was your advice to your Client?
As negotiations were not progressing with the tenants surveyor I discussed this with my Client
I outlined that issuing a Calderbank offer could encourage proceedings
The Client agreed and i gained the written consent from the Client prior to issuing
What was the reasoning behind accept the Tenants Calderbank offer?
On receiving the counter Calderbank offer i was aware that this was below my original offer and the landlords objectives
Additionally i considered the possibility of rejecting the offer and instigating third party redress. This could have been a viable option as in the lease it outlined an Independent Expert should be used which is advantageous in a rising market for the LL
However I concluded that the excess time and money spent utilising third party determination would not be worth the potential increase in rent available
Additionally, i considered that accepting the offer would maintain the landlord and tenant relationship.
I advised the Client on these factors and they agreed the best option would be the acceptance of the counter calderbank offer. DUTY OF CARE
When you reviewed the occupational lease what was this for?
To identify:
Basis of value
Assumptions and disregards
Whether time was of the essence
The hypothetical term
Please can you name some typical assumptions and disregards within the rent review?
