Property Law 9 LL Notice

Question 1

How can a Landlord bring a protected tenancy to an end?

Answer 1

• 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

Question 2

When must the Landlord serve a section 25 notice?

Answer 2

No less than 6 months and no more than 12 months before the date of termination.

Question 3

What are the two types of section 25 notices and what is the key difference between them?

Answer 3

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.

Question 4

In what circumstances can a hostile section 25 notice be issued?

Answer 4

• persistent and serious breach by the tenant of a repairing obligation
• persistent and serious other breaches of covenants by the tenant
• persistent delay by the tenant in paying rent

.

• 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

Question 5

What are the two grounds for a s.25 notice at court?

Answer 5

Mandatory - if established court must grant

Discretionary - if established, down to court’s discretion

Question 6

When will compensation be due in respect of a s.25 notice?

Answer 6

where there is no fault by the tenant.

Question 7

What is the amount of compensation due in respect of compensatory a s.25 notice?

Answer 7

• 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

Question 8

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

Answer 8

• Evidence will be required of a serious breach.
• Discretionary,
• not compensatory

Question 9

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

Answer 9

• Evidence of length of delay and number of failures to pay rent on time.
• Discretionary,
• not compensatory

Question 10

For this s.25 notice what evidence will be required, is the notice discretionary and is it compensatory?

Ground (c) – other substantial breaches of tenant obligations

Answer 10

• Evidence of serious and persistent breaches.
• Discretionary,
• not compensatory

Question 11

For this s.25 notice what evidence will be required, is the notice discretionary and is it compensatory?

Ground (d) – availability of suitable alternative accommodation

Answer 11

• Landlord must have made an offer of alternative accommodation suitable to the tenant (with regard to the tenant’s business and goodwill).
• Mandatory,
• not compensatory

Question 12

For this s.25 notice what evidence will be required, is the notice discretionary and is it compensatory?

Ground (f) – intention to demolish or reconstruct premises or carry out substantial construction

Answer 12

• Firm and settled intention to redevelop, possibly planning permission or construction contract.
• Mandatory,
• compensatory

Question 13

For this s.25 notice what evidence will be required, is the notice discretionary and is it compensatory?

Ground (g) – landlord intends to occupy premises

Answer 13

• Firm and settled intention by landlord who must have owned the reversion for at least 5 years before the date of termination.
• Mandatory,
• compensatory