Procedure following notice Flashcards
What is the deadline for applying to court in relation to a section 25 notice?
Either party can apply any time after service of a section 25 notice, the deadline for applying being the date of termination specified in the notice.
What is the deadline for applying to court in relation to a section 26 notice?
The parties may only apply after the landlord has served a counter-notice, or if not, two months have elapsed from the s.26 notice.
The deadline for applying is the day before the proposed commencement date of the new lease. The deadline may be extended if the parties agree in writing.
Explain the negotiation process of terms of a new lease
Both a friendly section 25 notice and a section 26 notice will propose the principal terms of the renewal lease.
The landlord and tenant will usually try to agree the terms of the lease between themselves, and only if they are unable to reach agreement ask the court to decide.
What can the court grant in relation to a new lease?
The court can grant a term up to 15 years, the rent will be open market rent, and other terms are determined by the court having regard to the terms of the current tenancy and relevant circumstances.
Explain interim rent
During the period of holding over and negotiation, the tenant will continue to pay rent as it was last reviewed by the lease.
Either party may apply during this period to the court to fix an interim rent which is based on the open market rent. Unlike a rent review, this is not upwards only, and it may be lower than the last reviewed rent in a falling market.
When is interim rent payable?
The interim rent is payable from the earliest date of termination that could have been specified in the landlord’s section 25 notice, or the earliest date that could have been specified as the proposed commencement date in the tenant’s section 26 notice.
What court orders can be made?
Either tenant or landlord may apply to the court for an order to grant a new lease, even if the landlord opposed renewal.
A landlord who is opposing renewal on the statutory grounds, either by hostile section 25 notice, or following a counter-notice, may apply to the court for an order for termination of the lease.
If a tenant is not happy with the terms proposed by the court or it changes its mind, what can it do?
It has 14 days to ask the court to revoke the court order. If asked, the court must agree, and the tenant will have no right to renew.
When will court orders bring an existing tenancy to an end?
Both types of orders bring the existing tenancy to an end three months and 21 days after the date of the order.
21 days from the date of the order is the time allowed for appeal.
When will court orders relating to grant of a new lease be imposed?
The new lease will start the day after termination of the existing lease.
