SGS 12 Security Tenure Flashcards
1
Q
Does the 1954 Act apply?
A
lease must satisfy s. 23(1) requirements.
There must be a (1) tenancy (2) occupation and (3) a business.
If it applies the protected lease will not end on its CED and the tenant may also apply for a new lease (s. 24(1)).
2
Q
Is the tenancy contracted out?
A
Excluded by agreement between the parties (s. 38A).
- First, at least 14 days’ notice must be given by L to T stating the Act will not apply. The tenant must then make a simple declaration confirming his receipt and understanding of the notice.
- Secondly, less than 14 days’ notice may be given by L to T, but then the tenant must make a statutory declaration. In both cases the lease must refer to the warning notice and the declaration and must contain a clause stating that security of tenure is excluded.
3
Q
Is the tenancy excluded?
A
Excluded by agreement between the parties (s. 38A).
4
Q
Termination by Landlord
A
- A landlord may serve a hostile or friendly notice under s. 25 to terminate the lease.
- Must give tenant not more than 12 nor less than six months’ notice of the specified termination date.
- Whilst the notice does not have to be served to end the lease on the CED, the termination date can never precede the CED of the lease.
- Service must be made by the competent landlord. Such notice may not be served if a s. 26 request has already been served by the tenant.
- After receiving a s. 25 notice a tenant wishing to renew its lease must ensure an application is made to Court for a new lease.
- This application usually made by tenant for security because if no application is made by the relevant deadline the tenant will lose the right to a new lease.
- The purpose of the application is to allow the Court to determine the terms of the lease if the parties cannot agree themselves.
- (S29A(2)(a)) The deadline is the specified termination date.
- (S29B) It is possible for the parties to extend this deadline with a view to agreeing matters themselves.
- If an application has already been made and the parties subsequently reach agreement on the terms of the lease the application may be withdrawn.
5
Q
Termination by Tenant
A
- Without Renewal – T Serves a S27 notice at least three months before the intended leaving date.
- Alternatively the tenant may simply vacate by the CED in which case no notice is strictly necessary.
- A notice may not be served under this section to end the lease at any date before the CED. If a tenant considers it may need to leave part way through the term, it should ask for a break clause when negotiating the lease.
6
Q
Request for New Lease by Tenant
A
- T must serve s. 26 not more than 12 or less than six months before proposed commencement date specified in the notice.
- new lease does not have to start on the day of the old CED (or even the day after it), the proposed commencement date cannot precede the CED.
- The request must be served on the competent landlord and cannot be served if a s. 25 notice has already been served.
- After receiving a s. 26 request the landlord may serve a counter-notice within two months indicating whether or not he will oppose a new lease (s. 26(6)).
- (s. 29A(3) The application to court is still necessary but cannot be made until the tenant receives the landlord’s counter-notice or (if the landlord does not serve this) until two months have passed following service of the s. 26 request
- (s. 29A(2)(b)) The deadline for applying to Court is the day before the proposed commencement date for the new lease as specified in the tenant’s s. 26 request
7
Q
Interim Rent
A
- T Pays old rent until new lease granted.
- S.24A either party can apply to court for interim rent.
- Interim Rent payable from earliest possible termination date if s.25 notice served, or earliest commencement date if s.26 request served which should be specified in each.
- Interim rent will be set at market rate unless the landlord is unwilling to grant a new lease, whereby it will be (10-15%) lower than market
8
Q
Terms of the New Lease
A
Parties free to negotiate terms of new lease
In absence of agreement court will decide:
• – See ss. 32-35 LTA 1954
• – O’May v City of London Real Property Co Ltd
9
Q
Answer Structure Tenants s.26 Request new lease
A
- Step One
• Plot today’s date on your timeline - Step Two
• Plot the CED (Contractual Expiry Date ) of the lease on the timeline - Step Three
• Remember the rules which govern when the notice can be served and the calculation of the Specified Commencement Date. - Step Four
State any commercial pressures that would impact on your choice of SCD - Step Five
• State the SCD you would choose and therefore recommend when to serve the s.26 notice
10
Q
Answer Structure Landlord’s s.25 Notice
A
- Step One
• Plot today’s date on your timeline - Step Two
• PlottheCED(ContractualExpiryDate)ofthe lease on the timeline - Step Three
• Remembertheruleswhichgovernwhenthe notice can be served and the calculation of the Specified Commencement Date. - Step Four
• Stateanycommercialpressuresthatwould impact on your choice of SCD - Step Five
• State the SCD you would choose and therefore recommend when to serve the s.25 notice
11
Q
What will happen after notice is served on the landlord?
A
- Within two months of service of s.26 notice LL should serve counter notice on MP
- LL’s counter notice will either be hostile (and include grounds for opposition) or friendly (stating no objection)
- Either party can then apply to court, but as s.26 procedure, it would probably be Marine Paints.
- MP can apply to court anytime after LL serves counter notice or (if LL fails to) once two months have passed since s.26 served
- Deadline for court application is day before the SCD (can be extended by agreement)
12
Q
Compensation
(4)
A
- Available for “no fault” grounds (e, f and g)
- Rateable value x multiplier.
- If Tenant has been in occupation for over 14 years so it is entitled to a multiplier of twice the rateable value
13
Q
A
