Property Law 9 Flashcards
When do the security of tenure provisions apply?
…ANY TENANCY where the property comprised in the tenancy is or includes premises which are OCCUPIED BY THE TENANT and are so occupied for THE PURPOSES OF A BUSINESS carried on by him or for those and other purposes…
What is a fixed term tenancy
· A fixed term tenancy creates exclusive possession and a proprietary interest.
· It binds successors in title to the landlord.
· The tenant can use the property as if they were the owner
Can a fixed term tenancy benefit from security of tenure?
Yes
What is a Periodic tenancy?
· A periodic tenancy creates exclusive possession and a proprietary interest.
· It binds successors in title to the landlord. However, it can be brought to an end by notice.
It’s essentially a tenancy that goes from one period to the next.
Can a periodic tenancy benefit from security of tenure?
· It MAY benefit from security of tenure.
What is a licence?
· A licence is a personal permission to be on the land and is not a proprietary interest.
· It does not bind successors in title to the owner granting the licence.
Can a licence to occupy benefit from security of tenure?
No
What is a tenancy at will?
· A tenancy at will is similar to a licence as it is a personal permission but unlike a licence, the tenant can have exclusive possession.
· However, the important feature is that either landlord or tenant can end the tenancy at any time.
Can a tenancy at will benefit from security of tenure?
No
If the tenant leaves the premises vacant, can they benefit from security of tenure?
No - including underlets
Which tenancies are excluded from security of tenure?
- Agricultural tenancies (as they have their own statutory regime)
- Mining leases
- Service tenancies (a lease granted as part of a tenant’s employment, eg, a security guard’s flat)
- Fixed term tenancies of six months or less (but can become protected if the tenant has been in occupation for twelve months or more, whether through successive tenancies or if the tenancy is renewable beyond six months)
What tenancies can be ‘contracted out’ of the Landlord and Tenant act?
Fixed term tenancies (note a periodic tenancy cannot be contracted out).
What is the process for contracting out?
- The landlord must serve a warning notice on the tenant in a prescribed form.
- It must be served before the parties complete the lease.
- The tenant must provide a declaration in prescribed form to the landlord before completing the lease.
- If lease completion is at least 14 days from the date of the warning notice then this can be a simple signed declaration.
- If lease completion is less than 14 days away, then the tenant must provide a statutory declaration (declared before an independent solicitor).
- The lease must contain reference to both the notice and declaration (or statutory declaration) of contracting out.
What happens if the process for contracting out is not followed?
the likelihood is that the lease will enjoy security of tenure
How can a Landlord bring a protected tenancy to an end?
- forfeit the lease if there has been a breach of the tenant’s covenants and the lease allows this
- serve a section 25 notice, which may indicate an intention to recover the premises or offer a renewal lease
How can a Tenant bring a protected tenancy to an end?
- simply to vacate the premises at the end of the contractual term
- to surrender the lease with the landlord’s agreement
- for a periodic tenancy, serve notice to quit to bring the tenancy to an end
- serve a section 26 notice to request a new tenancy
- serve a section 27 notice to leave the premises
When must the Landlord serve a section 25 notice?
No less than 6 months and no more than 12 months before the date of termination.
What are the two types of section 25 notices and what is the key difference between them?
A ‘friendly’ section 25 notice - landlord is willing to renew the lease to start the day after the date of termination. It will propose the rent to be paid and principal terms of the new tenancy.
A ‘hostile’ section 25 notice - landlord intends to oppose renewal of the lease. The landlord can only do this on certain statutory grounds, and must specify on which ground or grounds the landlord intends to rely.
In what circumstances can a hostile section 25 notice be issued?
- persistent and serious breach by the tenant of a repairing obligation
- persistent delay by the tenant in paying rent
- serious and persistent other breaches of covenants by the tenant
- the landlord offers suitable alternative accommodation
- the landlord intends to demolish or reconstruct the premises or carry out substantial construction work which require possession
- the landlord intends to occupy the premises for itself
What are the two grounds for a s.25 notice at court?
Mandatory - if established court must grant
Discretionary - if established, down to court’s discretion
When will compensation be due in respect of a s.25 notice?
where there is no fault by the tenant.
What is the amount of compensation due in respect of compensatory a s.25 notice?
- at 1x the rateable value if the business has occupied the premises for less than 14 years
- at 2x the rateable value if the business has occupied the premises for 14 years or more
For this s.25 notice what evidence will be required, is the notice discretionary and is it compensatory?
Ground (a) – breach of tenant repairing obligation
Evidence will be required of a serious breach. Discretionary, not compensatory
For this s.25 notice what evidence will be required, is the notice discretionary and is it compensatory?
Ground (b) – persistent delay in paying rent
Evidence of length of delay and number of failures to pay rent on time. Discretionary, not compensatory