Property Law 10 Flashcards
What are the methods of terminating leases?
- Effluxion of time
- Surrender
- Notice to Quit
- Merger
What is Effluxion of time
- the end of the tenancy
What happens if a tenant stays after the lease runs out with the Landlord’s permission?
- If the landlord consents to an unprotected tenant remaining in occupation, the tenant is not holding over, but would be treated as a ‘tenant at will’.
What happens if a tenant stays after the lease runs out with the Landlord’s permission and the Landlord accepts rent?
- If the landlord accepts rent, then the tenancy at will may be converted to a periodic tenancy and, if otherwise qualify, will acquire security of tenure.
Notice to quit - unless the contract says otherwise, what is the period in which a notice to quit must be given?
Weekly – four weeks (residential) or one week (other tenancies)
Monthly – one month
Quarterly – one quarter
Yearly – six months
Which day must a notice to quit be for?
The first day or the last day of the tenancy period
Who can issue a notice to quit?
Either the landlord or tenant
What happens if a Landlord issues a notice to quit for a protected tenancy?
The notice will only end the periodic tenancy itself. The tenant will be entitled to hold over.
How does a Landlord gain control when issueing a notice to quit for a protected tenancy?
Issue a hostile s.25 notice which may also be the notice to quit
What is a surrender of a lease?
An agreement by both Landlord and tenant that the lease should come to an end. A premium may be payable by the party that wants to surrender.
How can a surrender by effected?
- A surrender by deed
- A surrender by operation of law
What is a surrender by operation of law?
A surrender by operation of law arises when the landlord and tenant act in way that is inconsistent with the continuation of the tenancy. For example, the landlord accepts the keys from the tenant with an understanding that the tenant is leaving the premises permanently.
What is a merger?
A merger happens when either the tenant acquires the landlord’s superior interest (the opposite to a surrender), or a third party acquires both.
What are the methods by which a landlord can remedy a breach by a tenant?
- Damages
- Action in debt
- Guarantor and rent deposit
- Commercial rent arrears recovery (CRAR)
- Equitable remedies
- Forfeiture
What are the equitable remedies by which a landlord can remedy a breach by a tenant?
Specific performance - order to do something
Injunction - order to stop doing something
What would damages achieve for the landlord?
Put the landlord back into the position they would have been were it not for the breach of covenant.
What would an Action in Debt achieve for the landlord?
Issue court proceedings to recover a debt. An action for debt is limited to rent due in the six years before the issue of proceedings. Any earlier outstanding rent is irrecoverable.
What would a Guarantor and rent deposit achieve for the landlord?
The landlord can rely on the contractual terms of a guarantee to claim its losses from the guarantor.
The landlord can draw on a rent deposit (usually limited, say to six months’ rent) if there are any arrears.
The tenant will be required to top up the deposit after a withdrawal.
Does a Guarantor and rent deposit Only apply to rent?
No - A guarantee will typically cover all the tenant’s obligations, so that the landlord is not limited to pursuing unpaid rent, but also any breach of the tenant’s covenants.
What is Commercial rent arrears recovery (CRAR)
A Self-help remedy that is generally cheaper and quicker than court proceedings.
When can Commercial rent arrears recovery (CRAR) be used?
- the premises are purely commercial (it cannot be used, for example, where the premises comprise a shop and residential flat)
- a minimum of seven days’ principal rent is owed (it can’t be used to recover service charge or any other sum reserved as ‘rent’ but does include VAT and interest)
- the lease has not been forfeited