Level 3 - Mountain Ash

Question 1

Tell me about this property?

Answer 1

Small industrial unit in a terrace
One roller shutter and small yard space at front
Eaves height of 6m
Steel portal frame with metal profile clad roof
1990s construction
Mountain Ash - small town in welsh valleys

Question 2

What is an outside the Act lease?

Answer 2

The tenant does not have security of tenure, therefore the LL can evict the T at lease expiry
T cannot seek compensation

Question 3

How did I indicate my client wanted to renew their lease?

Answer 3

I simple contacted the Landlord to notify the lease is ending and my client would like to renew, and outlined lease duration terms.

Question 4

What was your clients desired terms?

Answer 4

3 year extension with a 2nd year TBO

Question 5

What did you explain to your client about their rights on a new lease?

Answer 5

LL assuming outside Act lease, as per existing
I explained that the LL has the right to assume VP of T upon expiry

Question 6

What notice must a LL serve warning of an unprotected lease?

Answer 6

‘health warning’ by a solicitor which explicitly states outside Act
Must confirm response and accept terms

Question 7

What would have happened if you didnt renew lease before expiry?

Answer 7

If terms agreed, LL issue a Tenancy at Will - interim licence to allow for completion

Question 8

What if LL accepted rent?

Answer 8

This may create a protected tenancyW

Question 9

What was the rental figure agreed?

Answer 9

£11.50 psf

Question 10

What was the evidence?

Answer 10

The LL provided evidence of two OML in neighbouring properties at ta similar level
Tone of the Estate

Question 11

Did you try and negotiate this level?

Answer 11

I tried to agree a level of a recent letting at £11.00 psf
The LL had a waiting list of occupiers
Outside the Act lease - little negotiating power

Question 12

How did you explain the uplift to the client?

Answer 12

Demonstrated the evidence
Explained outside the Act
Premises essential for operations - such a low rent that better to accept small increase and save costs searching for new premises

Question 13

Why might a lease be outside the Act?

Answer 13

The lease is not a business tenancy
The tenancy is a tenancy at will
The lease is a service tenancy
The tenancy is for a term not exceeding 6 months (with no right to renew conveyed) and that the tenant has not been in continual occupation for more than 12 months
The lease is contracted out of the security of tenure provisions within sections 24-28 of the Landlord and Tenant Act 1954. This needs to be done in a prescribed manner and prior to the commencement of the lease.

Question 14

Tell me about your lease renewal in Mountain Ash

Answer 14

Point 1 – I was instructed to renew the lease of an industrial unit in Mountain Ash that did not have security of tenure
Point 2 – I confirmed new terms with the LL in line with my clients objective, which was not opposed, and informed my client the new lease would be outside the Act
Point 3 – I advised my client of the terms, which included a rental uplift due to strong evidence in neighbouring units that had recently renewed.

Question 15

What Section of the 1954 Act states Outside the Act?

Answer 15

Section 38A

Question 16

Why was the lease outside the act?

Answer 16

It was a previous requirement from the Landlord for future flexibility

Question 17

What is the difference between Simple and Statutory Declaration?

Answer 17

Confirmation that Lease is outside the Act
Simple declaration given when at least 14 days+ before committing to lease
Statutory Declaration is given when less than 14 days before committing to lease, and must be made in front of a independent solicitor