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Property Practice > Lease termination > Flashcards

Lease termination Flashcards

1
Q

What are the ways in which a lease can come to an end?

A

Effluxion of time
Break clause
Surrender
Notice to quit
Merger

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2
Q

What is effluxion of time?

A

Where fixed term tenancy does not have security of tenure expires at end of contractual term

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3
Q

What is the consequence if a landlord requires a tenant to vacate after effluxion of time and the tenant refuses?

A

Landlord can treat them as trespasser

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4
Q

What is the consequence if a landlord consents to an unprotected tenant remaining in occupation at the end of a term?

A

Tenant at will

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5
Q

What is the consequence if a landlord accepts rent when an unprotected tenant remains in occupation at the end of a term?

A

Tenancy at will may convert into periodic tenancy (and may acquire security of tenure)

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6
Q

What is the effect if a landlord exercises a break clause in a tenancy that is protected?

A

Brings contractual term to an end but tenant may still hold over

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7
Q

Can periodic tenancies be contracted out?

A

No

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8
Q

What is the default notice period for periodic tenancies?

A
  • Weekly =
    o Residential = 4 weeks
    o Other = 1 week
  • Monthly = 1 month
  • Quarterly = 1 quarter
  • Yearly = 6 months
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9
Q

What is the specific rule on when a period tenancy notice period must expire?

A

must expire on first or last day of tenancy period.

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10
Q

What is the effect if a landlord serves a notice to quit in a protected periodic tenancy?

A

Ends periodic tenancy but tennat may still hold over

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11
Q

How can a landlord recover possession through notice to quit where a periodic tenancy is protected?

A

Serve hostile s25 notice

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12
Q

How must an express surender be made?

A

By deed

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13
Q

What is a reverse premium?

A

Premium paid by tenant to give up leasehold interest

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14
Q

When is there a surrender by operation of law?

A

When landlord and tenant act in a qay inconsistent with continuation of tenancy

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15
Q

Is a surrender effective for protected tenancies?

A

Yes

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16
Q

When is there a merger?

A

Either tenant acquires landlord’s superior interest or a third party acquires both

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17
Q

What are the landlord’s remedies if it breaches its lease?

A
  • damages
  • action in debt
  • guarantor
  • rent deposit
  • commercial rent arrears recovery
  • injunction
  • specific performance
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18
Q

What is the measure of damages if a tenant breaches its covenants and the landlord brings proceedings in court?

A

Putting landlord back in position if not for breach

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19
Q

What is an action in debt for rent arrears limited to?

A

rent due in 6 years before issue of proceedings

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20
Q

When may a landlord pursue a former tenant where the current tenant is an assignee?

A

Old lease or provided AGA

21
Q

When can commercial rent arrears recovery be used?

A
  • Purely commercial premises
  • Minimum 7 days’ principal rent owed
  • Lease has not been forfeited
22
Q

What is the procedure/requirements for CRAR?

A
  • enforcement agent appointed (who has required certificate or exempt)
  • 7 clear days’ notice of intention to enter premises
  • notice details (how to pay, power, contact details of agent)
  • if notice expires, can enter and take goods
  • 7 clear days’ notice of intention to sell goods
23
Q

What is forfeiture?

A

Allows landlord to re-enter premises and take back from tenant

24
Q

Is forfeiture automatic for legal leases?

A

No - permitted if lease allows

25
Q

Is forfeiture automatic for equitable leases?

A

Right to forfeit for non-payment of rent is implied

26
Q

When can forfeiture take place?

A
  • Non-payment of rent – as soon as lease allows
  • Other – L must serve s146 notice (gives T reasonable opportunity to remedy)
27
Q

How can forfeiture take place for business premises?

A
  • peaceable re-entry
  • court order for forfeiture
28
Q

How can forfeiture take place for residential/mixed use premises?

A

Court order only

29
Q

Where a Landlord wants to forfeit for non-payment of rent, what must occur?

A

Formal demand between sunrise and sunset

30
Q

When will a formal demand for non payment of rent not be needed for forfeiture?

A
  • Lease expressly waives requirement or
  • At least 6 months rent in arrears and insufficient seizable goods
31
Q

When will there be an implied waiver of the right to forfeit from the landlord?

A
  • Landlord does unequivocal act recognising continued existence of lease,
  • with knowledge of breach, and
  • communicates act to tenant
32
Q

What is a once and for all breach?

A

If landlord waives right to forfeit, never able to regain for that breach

33
Q

What is a continuing breach?

A

Each day breach continues, landlord regains right to forfeit

34
Q

What are examples of once and for all breaches?

A
  • Non-payment of rent
  • Unlawful assignment/underletting
  • Insolvency event
35
Q

What are examples of continuing breaches?

A
  • Failure to keep in repair
  • Breach of user
  • Failure to comply with insurance obligation
36
Q

What may a tenant apply for when the forfeiture process is initated?

A

Relief from forfeiture

37
Q

What is relief from forfeiture?

A

Court allows lease to continue

38
Q

Where a landlord has re-entered under a court order, when can a tenant apply for relief from forfeiture?

A

Within 6 months of re-entry

39
Q

What are the exceptional circumstances in which relief from forfeiture may not be awarded?

A
  • Lawfully let to new tenant
  • Non payment is exceptionally bad
40
Q

If a Landlord has peaceably re-entered without a court order, under what conditions may the court grant relief from forfeiture?

A
  • Rent and landlord’s costs are paid
  • Just and equitable
41
Q

Can anyone other than the tenant apply for relief from forfeiture?

A

Yes eg mortgagee or undertenant

42
Q

What are the requirements for forfeiture where there is breach of the repair covenant?

A

s146 notice including advising on counter notice if applicable

43
Q

When will the Leasehold Property (Repairs) Act apply for breach of repair covenant?

A
  • Lease term 7 years or more
  • At least 3 years of term left to run
44
Q

What is the consequence of the Leasehold Property (Repairs) Act applying for breach of repair covenant?

A

Tenant has 28 days to serve counter notice
Landlord cannot continue without leave from court

45
Q

What are the requirements for commencing proceedings for damages where there is a breach of the repair covenant?

A
  • serve s146 notice
  • 28 days for tenant to serve counter notice
46
Q

What is the measure of damages for breach of a repair covenant?

A

Loss of value to landlord’s reversion

47
Q

What will commercial leases usually contain given the unsatisfactory nature of forfeiture/damages where there is a breach of the repair covenant?

A

Self help clause aka Jervis v Harris clause

48
Q

What does a Jervis v Harris clause allow a landlord to do?

A
  • Enter property
  • Carry out repairs
  • Recover cost from Tenant
49
Q

For breaches other than non-payment of rent or repair covenant, a s46 notice is required to be served allowing reasonable time to remedy the breach. Which breaches may not require reasonable time as they are not capable of remedy?

A
  • underletting/assignment
  • illegal/immoral use

Property Practice (11 decks)

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