4.1 Property Management: Docs during lease lifetime

Question 1

Why no burden to use high quality materials in LtA

Answer 1

Too high a burden

Question 2

If T has opted to tax so UT has to pay VAT on premium for UL, what should UT ask for

Answer 2

Option + acknowledgment from HMRC + VAT invoice

Question 3

If T is paying VAT on top of L’s costs under a licence, what should T get

Answer 3

Valid VAT invoice

Question 4

When does licence not need to be registered

Answer 4

One-off consent +/or lease not registered

Question 5

When is there no need for LtA to state assignee will observe and perform covenants and why

Answer 5

For new leases, as implied by statute - 3(1)(b) LTCA ‘95

Question 6

What happens upon assignment of new lease under statute, and per what

Answer 6

T released from covenants - 5(2) LTCA

Question 7

What section states 5 LT(C)A will not release CT from covenants if unlawful assignment (e.g. w/o consent)

Answer 7

11

Question 8

Aubergine v Lakewood

Answer 8

Agreement ‘in principle’

Question 9

If UT is being charged a premium, what are the two potential tax consequences

Answer 9

Paying VAT on premium and SDLT

Question 10

If UT is paying a premium for UL, what should you check first

Answer 10

If HT is allowed to charge UT a premium under lease

Question 11

Why is it unfair for any licence to expire on X date, w/o ability to get extension

Answer 11

Would happen automatically without considering the circumstances

Question 12

Under CDM Regs, when will LtA say that L is to keep H&S file

Answer 12

If multi-let

Question 13

How should you cap T paying L for L’s costs in granting licence

Answer 13

Reasonable and proper costs up to £X

Question 14

In LtA, what O regarding T’s neighbours is reasonable, and what is not

Answer 14

O not to cause a nuisance/damage, but avoid O not to annoy or inconvenience - too subjective

Question 15

What should you ensure LtA states, if acting for T, regarding costs

Answer 15

Limit paying L’s costs of consent to specific sum + VAT + reasonable disbursements, or reasonable and proper costs

Question 16

What two things can L make as a condition of his consent for an alteration under 19(2) LTA

Answer 16

Recover expenses + make reinstatement a condition

Question 17

Under LtA, should there be an O on T to carry out works? Why/why not?

Answer 17

No - would mean works not voluntary, so considered on RR

Question 18

What section provides that benefit and burden of all T + L covenants pass on assignment

Answer 18

3(1)(b) LT(C)A

Question 19

Why should T avoid paying L’s costs immediately

Answer 19

Too onerous and prescriptive

Question 20

Why should T/UT/A resist paying VAT on L’s costs if capable of recovery

Answer 20

Shouldn’t be able to claim off (U)T/A just bc simpler than claiming from HMRC

Question 21

How to stop parties agreeing to extend licence becoming agreement to agree?

Answer 21

State must be agreed within reasonable time

Question 22

When is a DoV required for LtCU

Answer 22

If change of use not specifically envisaged in the lease

Question 23

What is the usual covenant in a lease for structural alterations

Answer 23

Absolute

Question 24

For T to claim compensation for improvements, what must T do under Part 1 LTA

Answer 24

Serve notice of intention to carry out works on L + obtain certificate from L/court once completed

Question 25

What provision allows T to claim compensation upon termination for any improvements made

Answer 25

Part 1 LTA

Question 26

Lambert v Woolworth ratio

Answer 26

'Improvement' per T

Question 27

When should UL be contracted out of security of tenure

Answer 27

If lease also contracted out

Question 28

Why should L avoid giving agreement in principle

Answer 28

May = full consent

Question 29

Why should reinstatement be considered at RR

Answer 29

Would push rent up if disregarded

Question 30

What two LA consents may be required for alterations

Answer 30

BR + possible PP

Question 31

What two covenants are usually obtained for LtCU

Answer 31

T to obtain all necessary consents, and to pay for any increase in insurance premium

Question 32

What will happen if UL is not contracted out of SoT

Answer 32

Implied surrender

Question 33

If there is a qualified covenant for ***_alterations_*** under lease, what provision will be relevant

Answer 33

19(2) LTA

Question 34

Should there be O to comply w/ insurers' recommendations under LtA? Why/why not?

Answer 34

Can be prohibitively expensive, and not required

Question 35

Why is it too high a demand for T to do things immediately under LtA

Answer 35

May be completely unreasonable

Question 36

When should T pay L's costs for licence

Answer 36

Within 7 days of written demand

Question 37

Why might mortgagee need to consent to alterations by UT

Answer 37

States so in lease - T has to continue to comply, and UT will have covenanted to comply in LtUL

Question 38

Why for LtA should T not need to get L's approval for all Consents

Answer 38

Onerous

Question 39

If proposed works by T are major, what might L insist on

Answer 39

CWs from T's construction team

Question 40

For what kind of alienation **_is_** it necessary to state that incoming T will observe and perform covenants

Answer 40

Underlease

Question 41

For what improvements does **Part 1 LTA** not apply

Answer 41

if improvement is as a result of a statutory O (2(1)(b) LTA)

Question 42

If lease states need consent for alterations and UT wishes to carry out alterations, what happens

Answer 42

Need LtA between HT, UT, and HL

Question 43

Why might UL state L needs to consent to app for PP made by or on behalf of UT

Answer 43

Likely required by lease + LtU will state UT to comply w/ T's Os

Question 44

If UT wishes to make changes to UL, consent of who required?

Answer 44

Both its L and head L

Question 45

As T is released from covenants under a new lease per 5(2) LTCA, what should lease state

Answer 45

T only bound 'until released by virtue of LTCA'

Question 46

Why does L ensure that assignee also signs LtA

Answer 46

Gives privity of contract between L and assignee

Question 47

'Improvement' per T

Answer 47

Lambert v Woolworth

Question 48

What provision changes an **_absolute_** covenant to a fully qualified covenant

Answer 48

Para 3 Schedule 21 EA

Question 49

Under LtA, what right should L have to enter

Answer 49

Reasonable times on reasonable written notice

Question 50

Why will LtU state T not to allow UT to possess before UL completed

Answer 50

Will give UT SoT, so L would have to remove using 30(1) grounds

Question 51

Why is SP unlikely to enforce keep open clause in lease

Answer 51

Inequitable, too much supervision etc.

Question 52

What could L do if T allows UT to possess before UL completed, if LtUL states T was not to

Answer 52

L can sue both T and UT for breach of the LtUL

Question 53

What is the usual covenant in a lease for IDPs

Answer 53

Usually no need to get consent of L

Question 54

Can you contract out of Part 1 LTA?

Answer 54

Not *technically*, but possible by lease stating reinstate or T has **not** invoked procedure

Question 55

What provision allows L to charge reasonable expenses to T if covenant to get consent for A/UL upgraded to FQC

Answer 55

**19(1)(a) LTA**

Question 56

Why should you always check lease provisions when working out why various provisions have been included in licence, and if necessary

Answer 56

T has to continue to comply w/ lease provisions, and UL/A will have promised to comply w/ lease provisions in licence

Question 57

What premium for UL is too small for SDLT to be payable

Answer 57

£5k

Question 58

Agreement 'in principle'

Answer 58

Aubergine v Lakewood

Question 59

When should T/UT/A resist paying VAT on L's costs

Answer 59

If the VAT is recoverable from HMRC

Question 60

What provision permits any LtA to be subject to reinstatement

Answer 60

19(2) LTA

Question 61

If lease is contracted out of security of tenure, what will L want to see for UL

Answer 61

Evidence of procedure carried out to contract out UL

Question 62

For LtA, if subject to L approval of 'Consents', what should you ensure

Answer 62

May want to limit 'Consents' to PP only, and ensure L's approval will not be unreasonably withheld or delayed

Question 63

If a licence is to expire as parties did not agree to extend, what should happen to the licence

Answer 63

All clauses EXCEPT those relating to costs should determine

Question 64

For T's Os under LtA to e.g. make good damage caused, change from 'immediately' to what?

Answer 64

Do as soon as reasonably practicable/within X days of written demand

Question 65

What quality materials should LtA require T to use, and to what standard to carry out work

Answer 65

Only good quality, and to reasonable satisfaction of L

Question 66

What is the consideration regarding L's title for alterations

Answer 66

Consent may be needed from PWB of any restrictive covenants

Question 67

When will L grant a licence to T - why

Answer 67

Formal assent to make changes to the lease

Question 68

When editing LtA, when should you define 'L's premises'

Answer 68

If unit is part of Centre

Question 69

19(2) LTA permits L to make what condition of T

Answer 69

L to make condition of LtA that T reinstate + can charge T for reasonable costs + any diminution in value/damage caused

Question 70

What is the likely enforcement of a 'keep open' clause requiring T to keep trading

Answer 70

Damages only

Question 71

How does L in effect contract out of Part 1 LTA

Answer 71

LtA states T has not involved procedure and/or requires reinstatement.

Question 72

What may T have to do if new lease, upon assignment

Answer 72

Give guarantee - 16 LTCA

Question 73

What does LtA usually state about its time period

Answer 73

Expires if not completed within X time

Question 74

When does a licence need to be registered

Answer 74

If Deed of Variation to vary the lease + lease registered

Question 75

What two covenants are usually included in LtA + LtUL

Answer 75

Assignee/UL to observe + perform covenants, and T not to allow assignee/UL to possess until A/UL completed

Question 76

When should any licence expire

Answer 76

Reasonable time within which Works are to start, OR UL/A to be agreed, e.g. 3 - 6 months, w/ ability to apply for extension

Question 77

Why limit L's right to enter, but still allow

Answer 77

L shouldn't interrupt business, but will want to supervise

Question 78

What case said giving agreement in principle may = full consent

Answer 78

Aubergine v Lakewood

Question 79

What must T's improvements be for compensation under Part 1 LTA (x4)

Answer 79

Add **letting value** to premises, be **reasonable**, **suitable**, and *_not_* **diminish value** of any other property belonging to same L (**3(1) LTA '27**)

Question 80

Must DoV and LtCU be distinct?

Answer 80

No - can incorporate as long as LtCU is executed as a deed

Question 81

What provision is relevant if **_absolute_** covenant against alterations under lease

Answer 81

Equality Act - para 3 Schedule 21

Question 82

What should LtA state about reinstatement

Answer 82

Only if L reasonably requests, and consider provision at RR

Question 83

What is the effect of 5(2) LTCA

Answer 83

T under new lease released from covenants upon assignment

Question 84

3(1)(b) LTCA '95 has what effect

Answer 84

Assignee is automatically bound to observe and perform covenants if new lease

Question 85

Who are the parties to a LtUL

Answer 85

L + T + UT

Question 86

What is the usual covenant in a lease for non-structural alterations

Answer 86

(F)QC

Question 87

What section means it is technically unnecessary to provide that **_assignee_** will observe + perform covenants

Answer 87

3(1)(b) LTCA

Question 88

How to work out what is an 'improvement' under 19(2) LTA

Answer 88

Through the eyes of the T - Lambert v Woolworth

Question 89

2(1)(b) LTA '27 states what

Answer 89

Part 1 LTA does not apply if improvement as a result of a statutory O

Question 90

How is a licence usually given - C or deed

Answer 90

Deed

Question 91

If DoV used for LtCU what must happen for it to be valid - other than execution as deed

Answer 91

Reg at LR as changing lease

Question 92

19(2) LTA has the effect of what

Answer 92

Upgrades QC to FQC if the alteration is an 'improvement'

Question 93

What provision states that reasonable adjustments must be made for disabled members of the public

Answer 93

Ch.15 Part 20 s.20 Equality Act

Question 94

Why should LtA state T not to allow assignee to possess until A completed

Answer 94

Ensures A enters into possession on terms approved by L

Question 95

When will UT have to pay **VAT** *on top of* any **premium** for UL

Answer 95

If underlease states so

Question 96

Who is required to pay VAT on premium for underlease and when?

Answer 96

T is required to if they have **_opted to tax_**, as this converts it from an exempt supply to a standard rated