SGS 7 - Commercial security of tenure

Question 1

What 3 things do you need for s23 to be satisifed?

Answer 1

A tenancy occupied by the tenant for purposes of a business carried on by him

Question 2

How would you find out whether the parties contracted out of the 1954 Act and whether it was done so correctly?

Answer 2

By looking at the lease - lease needs to start that contracting out procedure was followed

Question 3

What notice should be served if the landlord is serving a notice expressing his opposition to the grant of a new tenancy?

Answer 3

A hostile s25 notice

Question 4

What are the two rules about the specified termination date/ proposed commencement date for a s25/26 notice?

Answer 4

1) the STD/PCD cannot be less than 6 months after or more than 12 months after the date on which the notice was served
2) the STD/PCD cannot be earlier than the CED

Question 5

If the landlord is serving a s25 hostile notice, what else must the notice contain?

Answer 5

Must give the s30(1) ground(s) on which he relies

Question 6

After service of a s25 notice by the landlord - when must the tenant apply to the court by?

Answer 6

s29A - need to apply to the court by the STD in order to protect the tenant’s right to apply for a new tenancy (so even if the s25 notice is friendly) but landlord can also make the court app

Question 7

What does a tenant’s s26 notice need to contain/ what form?

Answer 7

1) it must be in the prescribed form
2) must be served on the competent landlord
3) needs to set out the proposed terms for the new tenancy

Question 8

If a landlord intends to oppose a tenant’s s26 notice, what does he need to do?

Answer 8

File a counter-notice within 2 months from the service of the s26 notice stating on which s30(1) ground he opposes the grant of a new lease

Question 9

for a tenant’s s26 notice - when is the deadline for making the application to court?

Answer 9

the day before the PCD (‘proposed commencement date’)

Question 10

what is the effect of the tenant failing to apply to court after serving a s26 notice?

Answer 10

the tenant loses the right to apply to the court for the grant of a new tenancy

Question 11

If the tenant has held over past the CED and does not want a new lease, what type of notice do they serve?

Answer 11

a s27 notice

Question 12

what must a s27 notice be served?

Answer 12

At least 3 months before the date the tenant wishes to leave - need to give the landlord 3 months notice (this is only if you have held over - can leave on the CED without notice if you wish)

Question 13

Who is the competent landlord?

Answer 13

the competent landlord is the one defined in s44 who the party may serve notices on

Question 14

If a notice was served on 31 August 2020 and it is a six month notice, on what date does it expire?

Answer 14

There is no 31 February, so the notice expires on the last date of the month i.e 28 February unless it was a leap year

Question 15

If a tenancy was expressed as ‘from and including 28 April 2020’ and has a term of 10 years, when is the CED?

Answer 15

27 April 2030

Question 16

If a tenancy was expressed as ‘from the 28 April 2020’ and has a term of 10 years, when is the CED?

Answer 16

the tenancy actually commences on 29 April but the CED is 28 April 2030

Question 17

which of the s30(1) grounds are mandatory grounds?

Answer 17

D
F
G

Question 18

Which of the s30(1) grounds are compensatory grounds?

Answer 18

E
F
G

Question 19

If the court is satisfied that a compensatory ground and a non-compensatory ground have been proven, according to s37, does the landlord have to pay compensation?

Answer 19

No - because at least one non-compensatory ground has been established

Question 20

if a business has occupied the premises for less than 14 years, how will compensation be calculated?

Answer 20

1 x (1 x the rateable value of the property)

Question 21

if a business has occupied the premises for 14 years or more, how will compensation be calculated?

Answer 21

1 x (2 x the rateable value of the property)

Question 22

What does the case of O’May say about the terms of the new tenancy

Answer 22

the terms of the new tenancy will be based off the old tenancy as a starting point

Question 23

If the court grants a new tenancy - what is the maximum term they can impose?

Answer 23

the new term is discretionary but in any event should not be more than 15 years

Question 24

If the court grants a new tenancy - when will the new tenancy commence?

Answer 24

when the current lease comes to an end, and that will be 3 months and 21 days after the order to give both parties and opportunity to appeal the new terms