L&T

Question 1

What are the contents of a lease?

Answer 1

Interpretation
Demise
Landlords covenants
Tenants covenants
Alienation
Insurance
Break Option
Liabilities
Rent Reviews

Question 2

What are the sections within a lease?

Answer 2

Date
Demise
Identification of L&T
Other parties
Term
Premium
Break Date
Review Date
Permitted use
Easements
Tenants covenant
definitions
Service charge provision
Assignment
Obligations
Repair
Alterations
Third Party Determination
Indemnity Insurance
Reinstatement
Plan

Question 3

What is a licence

Answer 3

A right to enter a property. An arrangement between licensor and licensee.

No interest in the property.

Merely a right that can be terminated by either party.

Question 4

What’s the difference between a licence and a lease?

Answer 4

Street vs Mountford 1985

A lease grants an occupier with an interest in the relevant land.

A licence gives permission to use the land.

A lease can be assigned.

A lease cannot be terminated until it expires where a licence can be revoked at any time.

Question 5

What are the requirements for a lease?

Answer 5

Exclusive Occupation

Payment of rent

Duration of specified term

If more than 3yrs the lease terms must be put in writing and signed and registered as a deed.

Question 6

What are the usual assumptions within a lease?

Answer 6

Property is available to let on the open market

willing Landlord and tenant.

The property is fit and available for occupation

All covenants observed by landlord and tenant

property will be used for the purpose set out in a lease.

Question 7

What are the usual disregards within a lease?

Answer 7

Any effect of goodwill on the tenants occupation

Tenants improvements if landlord consent has been granted for works.

Question 8

What is the hierarchy of evidence

Answer 8

Open market lettings
RR & Lease Renewals
Independent Expert Determination
Arbitrator Determination
Hearsay Evidence
Sale and leasebacks
Surrender and renewals
Inter-company arrangements

Question 9

What is section 23 of the L&T Act 1954

Answer 9

In order to gain protection under the act you need 6 basic elements:

1. tenancy
2. premise must be used for business
3. must be occupation
4. Occupation over 6 moths
   5.must not be an exempt tenancy
5. Competent landlord

Question 10

What is section 24 of the Act?

Answer 10

Sates that a tenancy will ‘hold over’ unless landlord or tenant serve notice.

Question 11

What is a section 25 notice?

Answer 11

Landlords notice to end lease or seek new lease.

Question 12

What is a section 26 notice

Answer 12

Tenants notice to seek a new lease

Question 13

What is section 27?

Answer 13

Notice served by the tenant anytime if they wish to end the lease. No less than 3 months before expiry.

Question 14

What is section 28?

Answer 14

Renewal of tenancy by agreement.

Question 15

What is section 30?

Answer 15

The landlords grounds for opposition of a new lease:
-breach of repairing covenant
-persistent delay in paying rent
-other substantial breach
-demolition or reconstruction
-owner occupation (must have owned the property over 5 years)

Question 16

What are sections 32-35?

Answer 16

Relate to the terms of a new lease.

Question 17

What is section 38a?

Answer 17

Contracting lease out of the act.

Reasons include:
-landlord wants future flexibility
-the rent may be lower
-the landlord wishes the redevelop the end of the property.
-the land will want to occupy the property
-a requirement of the head lease to grant any subletting outside the act.

Question 18

What are the ways to end a lease?

Answer 18

Forfeiture
Surrender
Insolvency
Break Clause
Lease expiry and the serving of the relevant notices (S25& S26)