Brainscape's Knowledge GenomeTM

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


See full index

L&T SoE > Level 1 > Flashcards

Level 1 Flashcards

1
Q

What drives value of a lease?

A

Length of Lease
Rent
Alienation / sub-lease clause
Rent review provisions
User clause
Repair covenant

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

What is the difference between a lease and licence?

A

Lease - interest in the land, can be assigned, cannot be terminated until it expires
Licence - permission to use the land, cannot be assigned, revoked at any time

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

What is included within a rent review provision?

A

Notional Term
Basis of review (upward only, CPI linked etc)
Assumptions & Disregards
Date of Review
Dispute procedures

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

What are usual assumptions?

A

Property to be let on open market by willing landlord/tenant for notional term
Property fit and available for immediate use
All covenants observed
Used for purpose set out in lease

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

What are usual disregards?

A

Any effect of goodwill on tenants occupation
Ignore goodwill attached to property
tenant improvements, if consent granted

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

What is Goodwill?

A

Goodwill is the attached benefit of a business in a location, or a reputation of a building because of the tenant

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

What are the methods of third party determination?

A

Rent Review - Arbitration, independent expert
Lease Renewal - Courts or PACT

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

Difference between Independent Expert and Arbitrator?

A

Evidence - Arbitrators act on evidence provided, Experts have duty of investigation
Appeal - Arbitrators limited right of appeal, Expert has no right
Negligence - Arbitrator cannot be sued, Expert can be sued
Law - Arbitration Act 1996, No legislation for Expert
Costs - Arbitrator aware over all costs, Expert over their own costs
C.L.E.A.N

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

What is the 1954 Act?

A

It provides a tenant with security of tenure. they have the statutory right to remain in the building upon lease expiry

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

How does MEES impact lease renewals?

A

Occupiers - property is not going to be MEES compliant during the term of the lease - may not align with corporate objective
Landlord - Occupiers may not renew - cost of finding new tenant

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

What are Green Leases?

A

Obligation in lease to LL and T to manage and reduce impact of property on the environment
Inclusion such as data sharing on energy consumption, right to alterations that improve efficiency, Restriction on LL works that adversely affect impact of building

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

What is Section 23?

A

Basic elements of 1954 Lease:
1. Tenancy
2. Premises used as a business
3. Occupation of at least part of the premises
4. More than 6 months
5. Not be a Tenancy at Will / Excluded tenancy
6. Competent Landlord

Teddy Bears Occupy Spacious New Cottages

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

Section 24?

A

States the Act is applied and does not expire by effluxion of time - holding over

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Section 25?

A

Landlords notice that ends the tenancy
not more than 12 months and not less than 6 months before date of termination

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

What must be included in a Section 25 notice?

A

Given by competent LL to competent Tenant
Relate to whole property
State date of termination
Prescribed form and inform tenant of their rights
Hostile or non-hostile and terms

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

What is a hostile notice?

A

When the LL opposes to a new lease and sets out grounds for opposition

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

What is a non-hostile notice?

A

When LL does not oppose new lease and must set out proposed term including rent

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

What happens if date for new lease passes? Unless?

A

Tenant loses security of tenure
Unless:
- new lease in place
- either party has applied to court
- extension of statutory period agreed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is the contents of a Section 25 notice?

A

Name and address of LL and T
Address of property
notice of date to end tenancy
Confirmation if opposed or granted new lease
confirmation of date of response
Landlord proposal for new tenancy, including rent
Grounds if opposed
Recommendation to seek professional advice

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

Section 26?

A

Tenant notice requesting a new tenancy
Start date not more than 12 months and not less than 6 months after request
prescribed form
states terms and proposed rent

21
Q

How long does the landlord have to oppose a Section 26?

A

2 months

22
Q

Section 27 notice?

A

Tenant notice to leave a premises with a 3 month notice
If not in occupation, do not need to serve notice

23
Q

Section 32 - 35?

A

Terms of a new lease
Courts must have regard of terms of the existing lease
15 year maximum term may be granted by court

24
Q

What is the case law for reflecting ‘modern lease terms’

A

O’May v City of London Real Property

25
Q

What is the Four Principles Test?

A
  1. valid reason on estate management ground
  2. Capable of being compensated by change in rent
  3. change not materially adversely affect security of tenure
  4. reasonable
26
Q

What is Section 34?

A

Assumptions of Market Rent

27
Q

What are the 4 assumptions for Market Rent? (S34)

A
  1. Regard to terms of new tenancy
  2. Willing landlord and tenant
  3. vacant possession
  4. Any effect on rent of 1995 Covenants Act considered
28
Q

What are four disregards for Market Rent (S34)

A
  1. effect on rent from tenants occupation
  2. Any effect on good will
  3. Tenant improvements
  4. any licenses
29
Q

What is Section 24a?

A

Interim Rent between old and new lease
If no notice has been served, no interim rent

30
Q

What is a rising market?

A

Interim rent where rent is higher than passing rent to reflect current market

31
Q

WHat is a falling market?

A

Interim rent where rent is lower than passing rent to reflect market

32
Q

Section 40?

A

Request of information
last 2 years of tenancy
not limited to one request

33
Q

What is Section 44?

A

Definition of Competent Landlord
- the freeholder or superior tenant with unexpired term of over 14 months

34
Q

How would you assess rent free on a lease renewal?

A

Still ambiguous
But recent law has held that both rent-free and fit-out incentives should be taken into account

35
Q

What is the case law for Rent free on lease renewals?

A

Old Street Retail v GB Healthcare 2022

36
Q

Section 28?

A

Renewal of tenancy by agreement

37
Q

Section 29?

A

Order by Court for New Tenancy

38
Q

Section 38a?

A

Contracting outside the Act

39
Q

Are you aware of any reviews of the 1954 Act?

A

Law Commission due to review Part II of 1954 Act
To Cover security of tenure, interim rents and serving notices
December 2023?

40
Q

Section 30?

A

Grounds for oppoisition of new lease

41
Q

WHat are the 7 grounds for opposition

A

a - breach of repairing covenant
b - Delay in paying rent
c - substantial breach
d - suitable alternative accommodation
e - Uneconomic subdivision
f - demolition or redevelopment
g - owner occupation

42
Q

What grounds are discretionary for court to decide?

A

a - e

43
Q

What grounds are mandatory?

A

f and g

44
Q

What is the case law for grounds for redevelopment?

A

S Frances v Cavendish Hotel
Stated must have clear intention for redevelopment
in favour of tenant

45
Q

What is the case law for landlords own occupation?

A

ABP v Humber Oil Terminal
Landlord did not have to renew new lease as it could demonstrate clear intention to occupy

46
Q

Section 37?

A

Compensation payable
for leases granted after 1 April 1990 if not breached terms

47
Q

What grounds is there compensation payable?

A

Grounds e - g

48
Q

What are the compensation rates?

A

14+ years occupation = 2x RV
<14 years occupation = 1x RV

49
Q
A

L&T SoE (5 decks)

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