Mark Hoffman L&T Questions Flashcards
Do you know any RICS guidance that maybe applicable to expert witness?
Surveyors Acting as Expert Witnesses, 4th edition
What is the role of a mediator? Why is mediation not binding?
The role of a mediator is to help you reach an agreement, therefore the mediator as opposed to an arbitrator, cannot actually make a decision, just has to bring the parties to reach an agreement.
If a lease renewal goes to court, to whom does the court appoint to advise on the rental value?
Expert witness
Who does the expert witness have a duty to in a lease renewal negotiation?
The Court
How are the fees for an expert witness paid?
Split by TT and LL - hourly rate based on time spent
((Arbitrator cost will be hourly rate based on time spent))
If a LR goes to court, what does the court take into consideration when determining the terms of a new lease?
The old lease. It has to follow the broad terms of the old lease.
What would happen if a lease renewal was going on for two years and in the meantime the rents have gone up or down. One parties is going to be loosing out. What can you do?
Agree and Interim rent (section 24a of LTA 1954)
What is the case law which refers to court proceedings settling lease renewals?
O’May vs City of London
What is the relevance of a section 30 E,F and G in a Section 25 notice?
Compensation is payable under section 37
Under 14 years in occupation = 1 times rateable value
Over 14 years in occupation = 2 times rateable value
What are the grounds for s.30 grounds G - owner occupation?
Competent landlord - you have had to own the property for 5 years
If a tenant wishes to leave at the end of their lease, what are their options?
Serve a section 27 notice - served in the last three months
Tenants don’t have to do anything can just leave - give keys back. In theory they do have to give vacant possession
If you want to contract out of the 1954 what do you need to do?
Simple Deceleration - if served over 14 day from the completion of the lease
Statutory Declaration - within 14 days need to be witnessed by a solicitor
What it the O’May v City of London Real Property case law?
O’May v City of London Real Property Co Ltd [1983] 2 AC 726 – Summary
Key Facts:
The case concerned a lease renewal under the Landlord and Tenant Act 1954.
O’May (the tenant) occupied premises under a lease that included relatively tenant-friendly terms.
The landlord, City of London Real Property Co Ltd, proposed a new lease with significantly different terms, shifting more responsibility onto the tenant.
The tenant objected, arguing that the proposed terms were too different from the previous lease.
Key Legal Issue:
To what extent can a landlord propose changes to the terms of a lease upon renewal under the Landlord and Tenant Act 1954?
Decision:
The House of Lords ruled in favour of the tenant, O’May.
The court held that, while changes to a lease can be proposed on renewal, the landlord must justify significant departures from the existing lease terms.
A new lease should generally follow the structure of the existing lease, unless the landlord provides good reason for substantial alterations.
Key Legal Principles:
Presumption of Continuity – The lease renewal process under the 1954 Act is designed to maintain continuity, not to create a completely different bargain.
Burden of Proof on the Landlord – If a landlord wants to introduce substantial changes, they must justify why those changes are necessary.
Fairness to the Tenant – The new lease should not impose materially harsher terms unless a legitimate commercial reason is demonstrated.
Impact:
Limits landlords’ ability to impose unfavourable lease terms on tenants during renewal.
Ensures greater stability for tenants under the Landlord and Tenant Act 1954.
Guides courts when deciding lease renewal disputes by requiring a fair balance between both parties’ interests.
Why would a Calderbank not usually be used for an independent expert?
The arbitrator has the right to award costs. It is rare to see a CB issued with an IE.
Once the arbitrator has made their award, then then say now I term to the awarding of costs at that point you say to the arbitrator, we made a CB.
The Independent Expert is governed by the terms of the lease. The lease will set out who pays the costs. That is not open to negotiation, that is set out in the terms of the lease.
E.g. ‘Cost of IE could be bourn equally by both parties’ or could be ‘costs bourn by the party which bring the IE’
Who is an arbitrator governed by?
Arbitration Act 1996 - Arbitrator has the right to award costs
What is the assumed term for a rent review?
The term certain . Up to the break clause.
If a tenant protected under the LTA 1054 wants to leave at the end of the lease, what do they need to do?
Serve a Section 27 Notice (if required)
- If the tenant wants to leave at lease expiry, they can simply vacate by the last day of the lease - no formal notice is required.
- However, if the tenant HOLDS OVER beyond lease expiry, they MUST serve a SECTION 27 NOTICE to end their obligations - giving at least 3 months written notice to formally end the lease.
- if the tenant continues occupying after the lease ends without serving a Section 27(2) notice, the lease remains in effect under the act.
