Security of tenure Flashcards
What happens if a landlord has notified a tenant that possession is required at the end of the term and the tenant continues to occupy in a non-protected tenancy?
The tenant is trespassing
What is a protected tenancy?
A tenant has a right to stay in occupation (hold over) and can only be evicted by particular methods
How can a landlord end a protected tenancy?
By:
* Forfeiting the lease if there has been a breach
* Serving a section 25 notice indicating intention to recover premises or offer renewal
What are the methods a tenant can use to end a protected tenancy?
By:
* Simply vacating the premises at the end of the contractual term
* Surrendering the lease with landlord’s agreement
* Serving notice to quit to end periodic tenancy
* Serving a section 26 notice to request a new tenancy
* Serving a section 27 notice to leave the premises
What must a section 25 notice state?
The date when the current tenancy will end
This date must be on or after the contractual term end.
When must a s25 notice be served?
Must be served no less than 6 months and no more than 12 months before the termination date
What is a friendly section 25 notice used for?
To provide peace of mind or to enable market rent to be fixed for a renewal tenancy - it secures the tenant for a new term and includes new proposals for the tenancy
What may a lease contain regarding rent in a friendly section 25 notice?
A rent review on the day before the end of the contractual term, which will be the rent during the holding over period
What is a hostile section 25 notice?
A notice that opposes renewal of the lease
What are the grounds for a s25 notice and what evidence is required?
a. Breach of tenant obligation - evidence of serious breach
b. Persistent delay in paying rent - length of delay, number of times
c. Other substantial breaches of tenant obligations - serious and persistent breaches
d. availability of suitable alternative accommodation - must consider goodwill
f. intention to demolish or reconstruct premises or carry out substantial construction - firm and settled intention, permission/contract
g. LL intends to occupy premises - firm and settled intention
When can a LL use condition g (intention to occupy premises)
If they have owned the reversion for at least 5 yrs before the date of termination
What are mandatory grounds in possession cases?
Mandatory grounds are ones which force the court to grant possession to the landlord.
- suitable alternative accom
- intention to demolish/reoncstruct
- LL intends to occupy the premises
What are discretionary grounds in possession cases?
Discretionary grounds are those where even if the landlord shows the ground, it is down to the court’s discretion.
- breach of repair obligation
- persistent delay in paying rent
- other substantial breaches
When is the tenant entitled to compensation?
- Intention to demolish or construct
- LL intends to occupy
i.e where there is no fault of T
How is compensation calculated for tenants?
Compensation is calculated at 1x rateable value if the business has occupied for less than 14 years, and at 2x rateable value if the business has occupied for more than 14 years.
Rateable value is fixed by local authority.
What is a Section 26 Notice?
A Section 26 Notice is used to notify the landlord of the tenant’s intention to renew the lease.
What are the requirements for a Section 26 Notice?
The tenant must have a lease of a contractual term of more than one year, with a minimum notice period of 6 months and a maximum period of 12 months.
When does a Section 26 Notice expire?
The notice does not expire on the date of termination but on the proposed commencement date of the renewal lease.
How long does a landlord have to serve a counter notice after a Section 26 Notice?
The landlord has 2 months to serve a counter notice opposing the grant of the renewal lease.
What is a Section 27 Notice?
A Section 27 Notice must give 3 months of intended termination date, which must be no earlier than the date of the end of the contractual term.
Does a tenant need to serve notice if they intend to leave at the end of the contractual term?
A tenant who intends to leave at the end of the contractual term does not need to serve notice, but it is good practice to notify the landlord.
May want to use section 27 notice but would need to be served no less than 3 months before end of contractual term
What is the procedure following a Section 25 or 26 Notice?
- Either party may apply to court to renew the lease
- LL could apply to recover possession
What is the deadline for applying to court after a Section 25 Notice?
Either party may apply at any time
What is the deadline for applying to court after a s26 notice?
- Parties may only apply after the LL has served counternotice or two months have elapsed from the notice
- The deadline is the day before the proposed commencement date of the new lease (can be extended by parties agreeing in writing)
What do friendly Section 25 and Section 26 notices propose?
Both friendly Section 25 and Section 26 notices will propose principal terms of the renewal lease.
What happens if parties cannot agree on terms after a Section 25 or 26 Notice?
If they can’t agree, they ask the court to decide.
What sort of lease will the court grant?
- The court can grant a term of up to 15 years.
- Rent will be open market rent
- Other terms decided with regard to terms of current tenancy and relevant circumstances
What is Interim Rent?
Tenant will continue to pay rent as it was last reviewed by the lease.
What can either party do during the Interim Rent period?
Either party may apply to the court to fix an interim rent based on the open market rent, which can be up or down.
When is Interim Rent payable?
Payable from the earliest date of termination 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.
Who can apply to the court for a new lease?
Either tenant or landlord may apply to the court for an order to grant a new lease, even if the landlord opposed renewal.
What can a tenant do if they are not happy with the terms of the new lease as imposed by the court?
If the tenant is not happy with the terms or changes their mind, they have 14 days to ask the court to revoke the order.
Court must agree if asked
Does the tenant have a right to renew the lease?
The tenant has no right to renew.
What can a landlord do if they oppose renewal?
A landlord opposing renewal may apply to court for an order for termination of the existing lease.
This order will bring the existing lease to an end, and the tenant has no right to remain in occupation.
When do both orders bring the existing tenancy to an end?
Both orders bring the existing tenancy to an end 3 months and 21 days after the date of the order.
21 days is the time allowed for appeal
When does the new lease start?
The new lease will start the day after the termination of the existing lease.
