Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Property Practice > Leases > Flashcards

Leases Flashcards

1
Q

What is a lease

A

Street v mountford - exclusive possession for fixed period of time. Can exclude anyone including landlord, otherwise only a license

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How long can a sub lease last

A

Must be for period shorter than main lease otherwise it is an assignment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Does T need to deduce title for L

A

Yes if lease is more than 7 years long the landlord must deduce the title so that the tenant can register absolute title

No need to deduce title if lease is less than 7 years long

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Is an unregistered lease of less than 7 years length protected in any way

A

It is an overriding interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Do you need to deduce title when granting a sublease

A

Sub tenant can require head lease and assignments for 15 years but not freehold title

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Can a lease be granted to take effect in the future

A

Yes up to 21 years in the future but should created by deed if more than 3 years ahead otherwise it is an equitable lease registerable as a charge or if not registered then an overriding interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Who drafted the lease contract

A

Landlords solicitor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What to include in lease contract

A

State it is leasehold and how long for
Any incumberances
Indemnity covenants
Annex lease to contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

When and how should landlord supply tenant with lease and contract

A

Lease should be annexed to contact, engrossed by landlord and supplied to tenant 5 days before completion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What happens to covenants when a lease is assigned (pre-1996)

A

If lease was granted before 1996 then the original tenant and new tenant are both bound by covenant and landlord can decide who to pursue so indemnity covenant is implied into assignment contract

Landlord remains liable to original tenant throughout term of contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What happens to covenants on assignment ( post-1996)

A

If lease was granted 1996 onwards original tenant is released from covenants and they pass to new tenant unless they enter into a guarantee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Why would tenant give a guarantee to not be realeased from covenants when assigning a lease

A

if commercial contract and had a pre agreement
If L requires this as a condition to giving consent to assignment

Guarantee only applies to immediate successors and not subsequent tenants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

When granting a lease what should the landlords solicitor provide the tenant with

A 
Draft contract
Draft lease
Evidence of title 
Copies of relevant planning consent 
Evidence of lenders consent 
EPC - valid for 10 years
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What searches should the tenants solicitor do

A

Same as for freehold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What should the tenants solicitor do after completion

A

Pay apportionment of rent, SDLT, registration, submit land transaction return to HMRC
Ensure landlord has sent you copy of freehold title and copy of consent of landlords lender

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the two parts of a lease

A

Lease - executed by landlord
Counterpart- executed by tenant

Then swap them on completion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

When does tenant receive counterpart before completion

A

Landlord must engross lease and send to tenant 5 working days before completion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

When assigning a lease, what should the sellers solicitor provide to the buyer?

A 
Draft contacts 
Copy of lease
Evidence of title 
License permitting assignment to current and previous tenant 
Insurance policy for property 
Receipt for last premium due 
Receipt for last payment of rent and service charge 
Details of any management companies 
EPC
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Is SDLT payable when a lease is assigned

A

Yes on purchase price but not on rent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Should assignment of a lease be registered

A

Yes if more than 7 years left

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How does the buyer of an assigned lease know how much rent is due

A

Seller supplies buyer a completion statement showing apportionment of rent due from date of completion to next rent day

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Which form is used to assign a lease

A

TR1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Who drafts the transfer deed for a lease assignment

A

The buyers solicitor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Is a guarantor of the original tenant liable for a new tenant when a lease is assigned

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Is landlords permission necessary to assign a lease

A

Yes but they should provide it in writing within a reasonable time and cannot withhold it unreasonably

They can add conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What searches should the solicitor of a buyer of an assigned lease do

A

Same as freehold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Can you assign a lease which has an absolute covenant against alienation

A

No assignment would be a breach but can ask landlord to vary it

28
Q

Can landlord refuse to give consent for assignment

A

Yes but not unreasonably and must give reasons

29
Q

What are reasonable grounds on which the landlord can refuse to consent to assignment of a lease

A

Any grounds in lease

30
Q

Can the landlord require the original tenant to pay their costs when assigning lease

A

Yes

31
Q

Should the buyer of an assigned lease request deduction of superior title

A

Yes but they are not legally entitled to it

32
Q

What is a qualified prohibition on alterations and improvements

A

This means T needs Ls consent for alterations and improvements but L may not withhold consent unreasonably

33
Q

Does T have to accept an absolute prohibition on alterations and improvements

A

Yes unless
Business premises can carry out works despite prohibition. Serve notice on L who has three months to object. Could offer to do works for more rent but T can refuse

34
Q

Can T claim compensation at end of lease for improvements and alterations

A

Where L consented and they added to the letting value

35
Q

Do existing easements pass when a lease is granted

A

Yes they pass automatically to T but may be excluded in lease

36
Q

Can the L control what use T puts the land to

A

Yes L can rely on Use Classes Order 1987

37
Q

What is a full repairing lease

A

When L has responsibility for repair work of whole property and the costs

38
Q

What is repair work

A

Would it create a wholly different property?

39
Q

What is an improvement

A

Remedy disrepair but also created something recognisably different

40
Q

Does T has to remedy an inherent defect

A

Only if it creates damage

41
Q

Can insured risks be excluded from repairing covenant

A

Yes unless money cannot be recovered from insurance company

42
Q

What if repair obligations fall on other tenants

A

Ensure there is a covenant from L that L will enforce repair obligations against other Ts

43
Q

When is a repairing covenant breached

A

Only once L has notice of disrepair so include term for T to notify L of need to repair then failure to notify would be a breach

44
Q

Should a self help clause be included in a lease

A

Yes so L can enter to repair and then charge T

45
Q

How will T know which parts of the building are part of their repairing covenant

A

This should be included in the contract

46
Q

What does the Landlord and Tenant Act 1954 part 2 do?

A

It gives security of tenure to Ts who occupy premises for business purposes

Means tenancy doesn’t end and expiry and needs more than notice to quit. T can apply to court for new lease and L can only object to renewal on grounds in act.

47
Q

What is security of tenure

A

Statutory rights to protect Ts interests under their lease

48
Q

Requirements for Landlord and Tenant Act 1954 part 2 to apply

A

Must be lease not license ( exclusive possession, rent and fixed period of time)

Business purposes main reason not sole reason

T must be in occupations personally or through agent, manager or company owned by T

49
Q

Can a lease for less than 6 months gain protection under Landlord and Tenant Act 1954 part 2

A

Yes if T was already in occupation for more than 12 months or it included provision for renewal or extension beyond 6 months

50
Q

What type of tenancies are excluded from the Landlord and Tenant act 1954 part 2

A

Tenancy at will
Tenancy not exceeding 6 months
Can contract out if T has notice before granted / before T is bound, is told to get legal advice and they make declaration or statutory declaration if less than 14 days notice
Statutory notice must be before independent solicitory
Reference to notice and declaration in lease

51
Q

What is a tenancy at will

A

Can be terminated by either T or L at any time

52
Q

Can you contact out of L and T act 1954 if it is a period tenancy and a fixed term tenancy

A

Not only for fixed term tenancy not periodic tenancy

53
Q

What type of leases cannot contact out of L and T act 1954

A

Railway, mining, dockyard, agriculture, service or farm

54
Q

Do you need a court order to contract out of L and T act 1954

A

Only if lease was granted before 1 June 2004

55
Q

7 methods of terminating tenancy under L and T act 1954

A 
S25 notice by L
S26 request by T for new tenancy 
Forfeiture 
Surrender 
Notice to quit periodic tenancy by T 
S27 notice by T to end FTT 
S27(IA) notice by T ceasing to occupy for business purposes at end of lease
56
Q

What is s25 notice by L under L and T act 1954

A

Two forms: one if L won’t object to new lease and one if L will object on grounds in s30
Must want vacant possession of whole building to object
Notice must be served 6-12 months before end of lease date in termination notice which cannot be sooner than the lease would otherwise come to an end

57
Q

How much notice must L give under S25 L and T Act 1954 if terminating tenancy

A

Notice must be served 6-12 months before end of lease date in termination notice which cannot be sooner than the lease would otherwise come to an end

58
Q

what is an agreement for lease

A

where one or both parties cannot enter into lease immediately but need to bind the other party.

59
Q

requirements for an agreement for lease

A

agreement and any variations must be in writing, incorporate all terms and be signed. Agree terms in advance and annex to agreement

60
Q

when is an agreement for lease triggered

A

practical completion triggers commencement of lease and liability for rent

61
Q

types of rent review clauses

A

open market rent review
turnover rent
fixed increase
index linked clauses

62
Q

How to record a rent review once new rent is agreed

A

Once L and T agree on the rent record it in a memorandum, signed and keep it with lease

63
Q

What is an index linked clause - rent review

A

increase or decrease in line with index. Generally multiply old rent by retail price index increase since date of last review

64
Q

what is a fixed increase - rent review

A

rent increases a fixed amount at the review date

65
Q

what is a turnover rent - rent review

A

T might pay base rent and top-up rent based on turnover of business.

66
Q

what is an open market rent review

A

rent is revised in accordance with changes in the property market. Working out the open market value - advice of a rent review surveyor should be sought as to the impact of a particular set of assumptions and disregards before the lease is agreed.

Property Practice (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions