PP 12 - Lease termination and landlord remedies Flashcards
What is Effluxion of Time?
Lease expires at the end of its fixed term. Tenant can hold over if protected under LTA 1954.
How does a Break Clause work?
Allows either party to end lease early. Tenant can hold over unless lease is contracted out.
What is a Notice to Quit?
Used for periodic tenancies. Landlord must also serve hostile s25 notice if protected.
What is Surrender?
Tenant voluntarily gives up lease. Can be express (by deed) or by operation of law.
What is Merger?
Lease ends when tenant or third party acquires landlord’s interest.
What happens if a landlord accepts rent after lease expiry?
Risk of periodic tenancy forming with security of tenure.
Can a landlord end lease via break clause in protected lease?
Only ends contractual term; tenant can still hold over.
When must Notice to Quit be served?
On first or last day of a tenancy period.
What is a Reverse Premium?
Payment by tenant to exit lease early via surrender.
Can surrender apply to protected leases?
Yes, even protected tenancies can be surrendered.
What remedies does a landlord have for tenant breach?
- Damages
- Debt action
- CRAR
- Forfeiture
- Injunction
- Specific performance
What is CRAR?
Commercial Rent Arrears Recovery - landlord seizes goods to recover unpaid rent.
What is required to use CRAR?
- Premises must be commercial
- 7 days’ rent owed
- Enforcement agent
- Notice given
What is a Jervis v Harris clause?
Allows landlord to enter, repair and recover costs without court order.
When is specific performance used?
Rare, used when no other remedy exists (e.g. no forfeiture or self-help clause).
What is forfeiture?
Landlord’s right to re-enter and terminate lease early due to breach.
Is s146 notice required for non-rent breaches?
Yes, must specify breach and give reasonable time to remedy.
What is waiver of forfeiture?
If landlord acknowledges the lease continues with knowledge of breach.
Can a tenant get relief from forfeiture?
Yes, court can reinstate lease if tenant remedies breach.
Who else can seek relief from forfeiture?
- Mortgagees
- Undertenants
- Others with derivative interests
What is the Leasehold Property (Repairs) Act 1938?
Applies to leases over 7 years with 3+ years left; tenant can serve counter-notice to stop damages claim.
How are damages for disrepair calculated?
Based on reduction in landlord’s reversionary value.
Is specific performance common for repair breaches?
No, rarely granted.
What is self-help for repair breaches?
Landlord repairs and charges tenant under Jervis v Harris clause.
Is s146 notice needed for self-help?
No.
What is the advantage of a debt action?
Clear-cut, separates debt from lease relationship.
When is CRAR best used?
For pure rent arrears, quick, no court needed.
What are the limits of forfeiture?
Risk of losing tenant, procedural requirements.
When might a landlord use specific performance?
When no other remedy available; rare.
What if a tenant has a guarantor?
Landlord can enforce obligations against guarantor.
When is injunction suitable?
To prevent an anticipated breach (e.g. unlawful user).
What if a former tenant has AGA?
Landlord can pursue them for breach under AGA.
What does rent deposit deed allow?
Quick recovery of arrears, tenant must top-up.
Can specific performance enforce keeping a shop open?
No, courts won’t enforce continuous obligations.
What does a landlord consider when choosing remedy?
- Speed
- Cost
- Effectiveness
- Risk of losing tenant
- Relationship impact
