Optional - Landlord and Tenant (L2)

Question 1

What are the timings regarding S25/26/27 notices?

Answer 1

Section 25 Notice
The landlord must serve the notice between 6 and 12 months before the date specified in the notice.

Section 26 Notice
A tenant must serve the notice between 6 and 12 months before the requested commencement date of the new tenancy.

The landlord must respond within two months if they wish to oppose the renewal.

Section 27 Notice
If the tenant wants to vacate at the lease expiry, no notice is required—they can simply leave.

Question 2

What clauses in a lease impact the rent review?

Answer 2

• Security of tenure
• Restrictive clauses
• Lease length
• User

Question 3

What is a hypothetical term?

Answer 3

A hypothetical term is the lease term assumed for the purpose of a rent review, potentially deviating from the actual lease’s terms.

Question 4

What are the differences between an Arbitrator and an Expert?

Answer 4

Arbitrators make binding decisions, while Experts provide opinions.

Question 5

How do you value a retail unit split over multiple floors?

Answer 5

Ensure consistency, a/2 for floors above usually.

Question 6

What is the difference between an agency inspection and a valuation inspection?

Answer 6

An agency inspection focuses on marketability, while a valuation inspection focuses on value assessment.

Question 7

Top 5 on Hierarchy of Evidence?

Answer 7

OML, LR, RR, IE, Arb

Question 8

What is the difference between a lease and a licence?

Answer 8

Lease - occupation for an agreed amount of time
Licence - allows tenant to do something that is otherwise illegal

Question 9

How much compensation is a tenant due if they have been in occupation for 12 years?

Answer 9

1 x RV

Question 10

Where are the grounds of opposition set out?

Answer 10

Section 30

Question 11

What are the grounds of opposition?

Answer 11

A. Breach of repairing covenant (fault)
B. Persistent delay in paying rent (fault)
C. Other substantial breach (fault)
D. Provide suitable alternative accommodation
E. Uneconomic subdivision (compensation payable)
F. Demolition or redevelopment (compensation payable)
G. Owner occupation (compensation payable)

Question 12

What is interim rent?

Answer 12

Interim rent is the temporary rent payable by a tenant after the contractual expiry of a lease but before a new lease is agreed upon

Question 13

What is meant by the term ‘without prejudice save as to costs’?

Answer 13

Cannot be used as evidence in court until the matter of costs is considered. If Party B rejected a reasonable offer, the court may order Party B to pay Party A’s legal costs.

Question 14

FOUR assumptions at rent review?

Answer 14

• Property available to let on open market by willing L to a willing T for a term of years as stated
• Property fit and available for immediate occupation and use
• All covenants observed by L & T
• Property may be used for purpose set out in lease

Question 15

What is security of tenure?

Answer 15

Security of tenure is the legal right of a tenant to continue occupying a property after the lease term expires.

Question 16

Section 25?

Answer 16

Section 25: Outlines the procedure for landlords to terminate a tenancy or propose terms for renewal.

Question 17

Section 26?

Answer 17

Section 26: Allows tenants to request a new tenancy by serving a notice on the landlord, proposing terms for the renewal.

Question 18

Section 27?

Answer 18

Section 27: Provides the mechanism for tenants to terminate their tenancy by serving a notice to quit, specifying the date on which the tenancy will end. ​

Question 19

Section 28?

Answer 19

Section 28: Permits landlords and tenants to mutually agree on the renewal of a tenancy or the terms of a new one, allowing for flexibility outside the statutory procedures. ​

Question 20

Section 29?

Answer 20

Section 29: Order by Court for a new tenancy

Question 21

Section 30?

Answer 21

Section 30: Lists the grounds on which a landlord can oppose the grant of a new tenancy

Question 22

Section 31?

Answer 22

Section 31: Specifies additional provisions related to the renewal process, including the terms and conditions that may be imposed in a new tenancy

Question 23

What is contracting out?

Answer 23

‘Contracting out’ is where the L and T make an agreement prior to entering into the lease to exclude the statutory rights Sections 24-28 under the 1954 Act and the tenant therefore loses their automatic right to renew their lease at the end of the lease term.

Question 24

Basis of valuation?

Answer 24

• Normally upwards-only
• Can also be indexation (RPI or CPI)
• Time is not normally of the essence

Question 25

THREE disregards?

Answer 25

Any effect of goodwill on occupation Ignore goodwill attached to the property Tenants improvements

Question 26

'Without prejudice save as to costs' offer?

Answer 26

To afford a party to a dispute some protection against the high costs of dispute resolution Must be WPSATC, but not STC Must be 'genuine offer to settle'

Question 27

Calderbank for lease renewals?

Answer 27

Part 36 offer

Question 28

Section 38A - Contracting out?

Answer 28

L required to serve a notice on the tenant indicating that they wish for the new lease to be outside the act, known as a 'health warning' Proposed tenant must make a declaration in response, confirming receipt and acceptance Procedure must be completed before lease is signed

Question 29

Two types of declaration?

Answer 29

**Statutory** - given when the parties have at lease 14 days prior to committing to the lease. **Simple** - given when the parties have less than 14 days prior to committing to the lease. In this case, must be made before a solicitor.