Terminating Without Renewal - Landlord Flashcards
Before Serving s25 Notice or responding to s26 Request - Stage 1
Check whether tenant satisfied criteria for security of tenure under s23
Before Serving s25 Notice or responding to s26 Request - Stage 2
Obtain OCEs to confirm identity of competent LL
Check rent demands accord with OCEs
Consider whether s40 request needs to be made
Before Serving s25 Notice or responding to s26 Request - Stage 3
Take instructions from client on what grounds of opposition under s30(1) they intend to rely on.
Advise on satisfying criteria
Before Serving s25 Notice or responding to s26 Request - Stage 4
Advise client that if it successfully terminates the lease or the tenant does not challenge the s25 notice, then the LL may have to pay statutory compensation to the tenant if on mandatory grounds.
Before Serving s25 Notice or responding to s26 Request - Stage 5
Check the contractual lease expiry date. s25 notice may terminate lease on or after the contractual expiry date but not before it.
Before Serving s25 Notice or responding to s26 Request - Stage 6
Check whether tenant has served s26 request
Confirm tenant address - Companies House
Serving a s25 Notice
- Serve notice specifying one or more of the statutory grounds
- Must use prescribed form
- Notice must specify all grounds on which the LL is opposing renewal [cannot add subsequent ground later on but can remove]
- Ensure that the notice is not served more than 12 months nor less than 6 months before the termination date specified in the notice
- Notice must be served in accordance with s66(4)
- Ensure notice is addressed to and served on all tenants
- If exercising a break clause, you must comply with the additional requirements and serve a notice to quit
- Ensure client is advised that notice cannot be withdrawn or amended
- Consider whether a s40 request should be served with the notice
- Check the lease and ancillary documents for provisions relating to service of a schedule of dilapidations or notice of reinstatement [may correspond with the contractual term only]
Responding to a s26 Request
- Must respond with counter-notice if opposed to renewal
- Check the s26 request is valid
- Respond setting out what s30(1) ground the LL is relying on. No prescribed form. Use specific wording of s30(1)
- Serve the counter-notice at the address specified in the tenant’s s26 request
- Ensure that the counter-notice is served within 2 months of the tenant’s s26 request. [Will lose right to oppose if LL fails to respond in time]
After Service of s25 Notice / Counter-Notice
- Tenant may make an application to court to request a new tenancy and challenging the LL’s ground of opposition
- LL may apply to court requesting an order that the tenancy be terminated without renewal
- Ensure expiry of notice is diarised. [This is the date by which a new lease must have been completed or an application to the court made - if neither of these events happens and the parties do not agree an extension in line with s29B LTa 54, the tenant will lose its right to a renewal and will have no right to remain beyond the expiry of the s25 expiry date]
- Advise client to put a rent stop in place [prevent implied periodic tenancy from arising]
- If neither party applies to the court before the end of the statutory period, the tenancy will end on the termination date stated in the s25 notice or s26 request. [tenant will lose its right to remain and the LL may consider obtaining possession by issuing proceedings or taking possession]
- Either party may request an extension to the statutory period. Depending on how negotiations are going, consider whether it would be appropriate for the LL to agree to this.
Making an application to court
- Parties must follow procedure set out in CPR 56 [this request the use of Part 7 procedure where the LL is seeking to oppose the grant of a new lease]
- Consider whether or not to include a claim for interim rent
- Parties should set out the terms of the tenancy they will be seeking in the event that the court decides that the LL has not made out its grounds of opposition
- Ensure compliance with CPR 56 and PD 56
- Time frame for AoS is set out in CPR 10
Court Orders
Court will order new tenancy where LL has failed to establish one or more ground under s30(1)
When will the current tenancy end?
If either party has made an application to the court then the tenancy will continue for at least 3 months after the order made by the court
On what date must compensation be paid to the tenant?
Tenant is entitled to receive compensation when it gives up vacant possession of the property.
What if neither party issues a claim?
- The lease will terminate when the statutory period expires and the tenant will have no right to remain
- LL should take steps to recover possession from the tenant
- If tenant remains there is a risk of an implied periodic tenancy and fresh rights under LTA 54 arising
