SGS 7 Flashcards
What is the structure of a s.26 request question?
Does the 1954 act apply?
- – s.23(1) satisfied
- – Tenancy excluded?
- – Tenancy contracted out of? (get copy of lease to check whether ss24-28 have been excluded)
Explain rights under s.24.
Has a s.25 notice been served?
Requirements of service of s.26 notice.
Apply
What are the rights under s.24?
Right to ‘hold over’ after CED
Right to apply to court for an order for the grant of a new lease of the premises.
Requirements of a s.26 notice?
Set out in s.26(3) - ensure serve on competent landlord and include proposed commencement date (‘PCD’).
Serious errors may invalidate notice (Mannai Investment v Eagle Star).
What is the first step after a s.26 notice is served on the landlord?
LL has two months to serve a ‘COUNTER NOTICE’.
Can be friendly (state no objection) OR hostile but should LL fail to do so, loses right to oppose grant of renewal lease.
STILL can negotiate terms of this renewal lease.
What is the second step after a s.26 notice is served on the landlord?
COURT APPLICATION
Made by LL or tenant as soon as counter notice received or after two months.
Deadline is a day before the PCD.
What is the purpose of a court application in the context of a s.26 notice?
If tenant does not make one, they lose their right to renew the lease - protects the renewal lease.
Once made, if LL not opposed, meets tenant and negotiates, if agree application withdrawn.
If do not agree, court determines terms of renewal lease.
How can a tenant protect a COURT APPLICATION?
Lodge a unilateral notice at the land registry against LL’s freehold title.
If unregistered - pending land action.
Any third party purchasing the landlord’s freehold will be bound by the application.
What are the terms of the new lease likely to be?
O’May: original lease terms are starting point. Party wishing to change must justify the change.
If not, court will decide.
Rent will be market (s.34)
Pre-Grant of Lease Steps?
Agree form of lease / Exchange Agreement
Send Completion and undertakings form.
OS2 / Solvency search at CH against landlord.
(Consent from L’s mortgagee)
Request completion monies from tenant
T signs counterpart and L signs original lease.
How can you tell whether a s.30 ground is mandatory?
‘ought not to’ will NOT be included.
What must be borne in mind when citing s.30(1)(g) as a ground for opposition?
s.30(2) - if L purchased interest less than 5 years before STD, cannot rely on this ground.
When will compensation be available?
If grounds e, f or g are cited.
BUT if cited alongside a non-compensatory ground, no compensation will be available.
What is the first method of contracting out of the 1954 act?
Who must a notice be served on?
landlord gives warning notice of 14 days.
Tenant makes simple declaration confirming receipt.
Tenant and any guarantors if guaranteeing the tenant’s covenants.
What is the second method by which the 1954 act can be excluded?
Landlord gives tenant a warning notice.
Tenant makes statutory declaration (less than 14 days._
What happens after receipt of a s.25 notice?
LL or tenant can apply to court.
