Renewing and terminating a lease Flashcards
Who serves a s25 notice?What are the two types?
- landlord
- friendly to renew the lease and hostile to end the lease
What are the statutory grounds on which the landlord can end the lease using a s25 notice? (6)
- serious breach of repair obligation
- persistent delay in paying rent
- other substantial breaches
- suitable alternative accommodation
- intention to demolish or reconstruct premises
- landlord intends to occupy premises (has owned reversion at least 5 years before termination)
From what date does a s25 hostile notice take effect? What is the minimum/maximum notice period?
from the date of termination
minimum = 6 months
maximum = 12 months
Who serves a s26 notice? What is a s26 notice?
tenant wants to renew lease if landlord does not take steps to do so
What right does the landlord have once a s26 notice is served on them? How long do they have to exercise this right?
to serve a counter notice within 2 months of service
From what date does a s26 notice take effect? What is the minimum/maximum notice period?
from the date of proposed commencement
minimum = 6 months
maximum = 12 months
Who serves a s27 notice? What is a s27 notice?
tenant when they want to terminate the lease (although they can simply vacate at end of contractual term)
When must a s27 notice be served?
not less than 3 months before the end of contractual term
What will both a friendly s25 and s26 notice propose?
principle terms of the renewal lease
From when may the tenant party apply to court after receiving a s25 hostile notice? When is the deadline?
any time after service of the 25 notice
deadline is the date of termination specified in notice
What can the tenant do if the landlord opposes the s26 notice? When is the deadline to take this action?
The tenant can apply to court after receipt of the counter notice
Deadline is the day before the proposed commencement date
What if parties cannot agree terms for renewal?
Apply to the court who can grant term up to 15 years + open market rent
What can the tenant do if they are not happy for a new lease to be granted? How must the courts respond?
- apply to court to revoke the lease within 14 days
- courts MUST agree
When would the tenancy end if the landlord successfully applies for an order of termination?
3 months and 21 days after order (tenant has 21 days to appeal)
In what circumstances can you not exercise a landlord or mutual break clause? How can you avoid this?
When there is SOT
Contract out SOT
What are the 2 ways to surrender a lease?
- parties agree by deed
- operation of law: parties act inconsistent with the continuation of the lease
Is forfeiture an automatic right of the landlord?
No. The lease must provide for it
What must the landlord serve on the tenant to begin the forfeiture process? What is an exception?
s146 notice
unless it is a breach for non payment of rent
What breach can the tenant serve a counter notice to a s146 notice? How long does the tenant have to serve this?
repair breach
within 28 days
What is the purpose of a s146 notice?
It gives tenant reasonable opportunity to remedy the breach
Is the tenant entitled to a relief after forfeiture? What are the 2 disadvantage of this?
- Yes. Relief from forfeiture which allows the lease to be reinstated
i. costly - will also have to pay for landlord’s legal fees which would not be good if company is already suffering financially
ii. at the court’s discretion so may not be granted even after expenses paid
What may the courts consider when deciding whether to grant relief from forfeiture? (3)
- If the tenant has remedied the breach
- Paid compensation
- If they believe the business will be able to pay and stick to the terms of the lease in the future
Why is forfeiture effective? (3)
- Embarrassment to tenants business
- Staff, customers unable to enter
- Can be achievable with peaceable entry
What are the disadvantages of the landlord using forfeiture? (3)
- no tenant in the building
- no rent
- costly if achieved through court order
