Landlord and Tenant

Question 1

What is a lease?

Answer 1

A lease is a contractual arrangement between a landlord and a tenant/leasehold, which sets out the term and conditions of the arrangement.

Question 2

What are the 4 requirements of a lease?

Answer 2

1) Exclusive Occupation
2) Payment of rent
3) Duration of specified term
4) If the duration is for more than 3 years the terms must be written, signed and registered as a deed.

Question 3

Difference between a lease and a licence?

Answer 3

A lease provides an occupier with an estate in the relevant land - a licence is a permission to make it lawful for them to use the land

A lease can be assigned - a licence can not be

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

Question 4

What is a Wayleave?

Answer 4

This is temporary right and receives a capital payment. it is personal to company and cannot be transferred to someone else.

example - Wayleave could provide a right for electricity company to install and retain their apparatus

Question 5

What are the various ways to terminate a lease?

Answer 5

• Forfeiture
• Surrender and negotiation
• Merger
• Disclaimer
• Break Clause
• Lease expiry and service of notices under the LTA 1954

Question 6

What is the Landlord and Tenant Act 1985?

Answer 6

The Landlord and Tenant Act 1985 is a UK Act of Parliament on English land law. It sets minimum standards in tenants’ rights against their landlords.

Question 7

What does Section 19 of the LTA 1985 state?

Answer 7

(1)Relevant costs shall be taken into account in determining the amount of a service charge payable for a period—
(a)only to the extent that they are
reasonably incurred, and
(b)where they are incurred on the
provision of services or the carrying
out of works, only if the services or
works are of a reasonable standard;

(2)Where a service charge is payable before the relevant costs are incurred, no greater amount than is reasonable is so payable, and after the relevant costs have been incurred any necessary adjustment shall be made by repayment, reduction or subsequent charges or otherwise.

Question 8

Give an example of where a cost would not reasonable under Section 19 LTA 1985