terminating a lease (week 10) Flashcards
what is efflux of time?
lease ends at the end of the contractual term
what is a break clause?
it requires a positive action by a party to end a lease
what is surrendering a lease?
tenant gives up leasehold interest to landlord (need landlord’s agreement)
what is a notice to quit?
periodic tenancy means either landlord or tenant can give notice that they intend the tenancy to end (quits at end of the periodic time period)
what is a merger (for a lease ending)?
either tenant acquires landlord’s interest or a third party acquires not interest. freehold and landlord are merged and come to an end
what is a Jervis v Harris clause (self-help)?
for commercial leases
It provides a relatively quick and efficient way to deal with breaches of the repairing obligation, and if the tenant does not remedy the breach, allows the landlord to carry out the work and recover the whole cost of remedying the breach as a debt.
what does damages do as a landlord remedy?
puts landlord back into position they would have been in if not for the breach
this is when tenant breaches covenants
what is an action in debt?
landlord can issue court proceedings to recover a debt (such as unpaid rent, service charge or insurance rent)
what are the limitations of an action in debt? (time period)
action for debt is limited to rent due in the 6 years before issuing of proceedings
what is the remedy of guarantor?
if landlord has concerns about covenant strength or assignee at time of the grant then landlord may have obtained a guarantor who will typically cover all Tennant’s obligations
what is the remedy of rent deposit?
landlord can draw on a rent deposit (usually limited to 6 months rent) if there were any arrears.
tenant will be required to top up the deposit after withdrawal
what is commercial rent arrears recovery (CRAR)?
self-help remedy for commercial rent. allows landlord to enter the premises and take goods and may sell them
when can commercial rent arears recovery (CRAR) be used? (3 requirements)
- premises is purely commercial
- minimum of 7 days principal rent owed
- lease has not been forfeited
what is the process of commercial rent arears recovery (CRAR)?
1.landlord appoints enforcement agent
2. gives 7 clear days notice
3. wait and if tenant doesnt repay the debt
4. then landlord can go into property and seize goods
5. serve a further 7 days notice
6. can then sell the goods
what is forfeiture?
right of the landlord to re-enter premises before the contractual term ends (brings the lease to an end)
when does the landlord have a right to forfeiture?
not an automatic right
landlord can forfeit if:
- tenant fails to pay rent
- breach obligations
- insolvency event
when does a landlord not need to serve a s146 notice for forfeiture?
tenant fails to pay rent
what are the two ways that forfeiture can happen?
peaceful re-entry (get bailiffs in and change locks and put notice on door)
court order
when does a landlord waive their right to forfeiture? (3 requirements)
landlord does some unequivocal act recognising the continuing existence of the lease
with knowledge of the breach in question; and
communicates that act to the tenant
what is a relief from forfeiture?
remedy for tenant or other party affected by the lease (eg, mortgage) it restores the forfeited lease and aims to put the parties back in the position they would have been if the forfeiture had not taken place
when can a landlord forfeit a lease for a breach of a repairing covenant?
lease is 7+ years and there is at least 3 years left on the lease
(landlord needs to serve a s146 notice of its intention to forfeit)
when can a landlord issue proceedings for damages for a repairing obligation?
must serve a s146 notice and then give the tenant 28 days to serve a counter notice.
how are damages calculated for breach of repairing obligation?
measure of the damages is the loss of value to the landlord’s reversion not the cost of putting premises into full repair (eg, makes landlord lose £1,000 rent but costs £8,000 to repair - they can only recover the £1,000)
