L&T 2 Flashcards
(43 cards)
What is the difference between a lease and a licence?
A lease is a contractual arrangement where a tenant agrees to pay rent to a landlord for exclusive occupation of a property for a fixed or periodic term.
Unlike a lease, a licence does not grant the tenant ‘exclusive possession’ of the property. A licence is merely a right to use the property.
What is the leading case in the matter of lease or licence?
Street and Mountford [1985]
➢ a licence to occupy a furnished room in a house
➢ the agreement conferred exclusive possession at a rent
➢ the owner provided neither attendance nor services
➢ the House of Lords ruled that this agreement constituted a lease as the women had exclusive possession and building owner provided neither attendance nor services - therefore was not a licence, the women had a key and exclusive possession
Examples of when you could grant a licence?
Car Parking, Pavement licence (to let people drink outside pubs- these are granted by the council), Seating licence outside restaurants
What is TAW?
A ‘tenancy at will’ occurs when a landlord and tenant agree that a tenant may occupy a property.
Again, no legal interest is created.
What is an easement?
Access to a property over another property (easement of access)
What is a wayleave?
Temporary right fro which annual payment can be requested to instal cables or telecommunications across land or property.
You are managing a property that is going to be redeveloped soon. What letting options do you have to generate some rental income without giving the tenant security of tenure under the 1954 Act?
Short term - LTA 1954 does not apply to leases under 6 months - so could grant a lease less than six months
Long term - if want more than 12 months then can exclude s24-s28 as long as the lease is more than 1 year
A tenant has entered into a full repairing and insuring lease of a property in disrepair. The LL requires T to remedy this disrepair. What advice would you give T?
Tenant must put in repair if agreed to keep in repair in the lease
What advice would you give to a tenant wanting to take a full repairing and insuring lease of a property in disrepair but suiting his business?
→ Reflect the expense of repair in the rent
→ Agree a specific state of repair e.g. good, habitable, tenantable
→ Agree a specification of works (ideal)
What action can a LL take when a tenant is in breach of repairing covenant?
1) L give notice under Section 146 of the Law of Property Act 1925
➢ specifying the breach
➢ requiring T to remedy the breach (if it is capable of remedy)
2) If the lease permits, then LL could enter premises and repair, and re-charge the tenant
3) Forfeiture - tenant have right to apply fro relief under under Leasehold property repairs act 1938
What action can a tenant take when a LL is in breach of repairing covenant?
Tenant can request LL carries out repairs
Can get injunction from court compelling LL to carry out repairs
If T is refused an injunction
➢ he may seek a declaration from the Court that L is in breach and
➢ that T is entitled to carry out the works and recover the cost by withholding rent
What does the Jervis v Harris case mean?
Exercise Right of Entry to Repair
Jervis v Harris [1996]
Allows the landlord to reclaim the cost of the works from the tenant as debt rather than damages
How are damages assessed when a tenant is in breach of repairing covenant?
Landlord and Tenant Act 1927 Section 18(1)
→Damages limited to the loss in value to Landlords interest caused by the Tenants breach
How are damages assessed when a LL is in breach of repairing covenant?
Difference in value in repair and out of repair
i.e. roof is leaking, and T can’t use half the premises - T wants half rent, half rates, half s/c etc.
i.e. if can’t use 1/4 of the premises, then want 25% discount
Explain the provisions of S18(1) of the LL & T Act 1927
Statutory cap on damages
→ Damages for breach by the Tenant of its repairing covenants cannot be more than the reduction in value of the landlords reversionary interest
→ No damages are payable if the Landlord is going to make structural alterations which would render the repairs valueless
Explain difference between Schedule of Condition and Schedule of Dilapidations
Schedule of Condition is a statement describing physical state of building, usually prepared by T surveyor to limit repairing liability (needs to be agreed with LL surveyor).
Schedule of Dilapidations is a record of alleged breaches of repairing covenant, usually prepared by L surveyor
Explain difference between interim and terminal schedule of dilapidations:
Interim is served when there are more than 3 years left to run
Terminal/Final is served in the last three years of the term
What is a Scott Schedule?
Used if the matter is going to court - Schedule of Dilaps is turned into a Scott Schedule as this is the recommended form (recommended by RICS) of which a Schedule of Dilaps should be presented in court.
What is the difference between an alteration and an improvement?
Alteration makes physical changes to the property
An improvement is an alteration that adds value
Your tenant’s client wishes to extend an industrial property. Explain the factors that need to be considered and the action that needs to be taken .
1) Check lease if permitted
2) Is consent required
3) Consider unexpired term and rent review clause wording
- If improvements will be disregarded
- If RR silent - T will have to rent on their own improvements
You are managing a property for your LL client and have received a request from a T to carry out improvements. The T has requested that improvements are registered under the 1927 Act. What advice would you give the LL?
For improvements to qualify for compensation the procedure in the 1927 Act must be followed;
1) Tenant must serve notice on Landlord before works start, with details and plans
2) Landlord has 3 months to object or offer to do works himself in return for a reasonable increase in rent
3) If Landlord does not object or offer to do the works himself, Tenant can proceed and must complete the works within an agreed period
If rejecting, can only reject if works do not add value, diminish value, or unreasonable/unsuitable.
How is compensation for tenant’s improvements calculated?
Lower of the addition in value, or the cost of doing the repairs less the cost of any disrepair (e.g. lower of value or cost)
If improvements are registered under 1927 act, the T gets compensation when they leave REGARDLESS of the reason that they leave for
What lease terms are implied under s19 of the LL & T Act 1927?
Provides that where Ls consent can be given
➢ it is implied that such consent shall not be unreasonably withheld
Explain the legislation that needs to be considered in an assignment of a lease
1) Section 19(1)(a) of the Landlord and Tenant Act 1927 implies that where consent can be given by L
➢ such consent cannot be unreasonably withheld
2) Landlord and Tenant Act 1988 where consent can be given by L
➢ Ls consent must be given within a reasonable time
3) LL&T Covenants Act 1995 -
Section 16 entitles L to require an assignor to guarantee the performance of the covenants by the assignee T
➢ called ‘Authorised Guarantee Agreements” (AGA’s)
