Landlord and Tenant

Question 1

What is contracting out?

Answer 1

Excluding the provisions of s24-28 of the LTA 1954, therefore no security of tenure

Question 2

What are the key differences between the ATA 1995, AHA 1986, Housing Act 1988 and Rent Act 1977?

Answer 2

ATA 95 is for agricultural businesses only and applies to land. Freedom of contract. MR.
AHA 86 is for agricultural property and gives succession rights for 3 generations. Rent properly payable rather than MR.
HA 88 applies to resi properties, introduced the concepts of assured tenancy and assured shorthold tenancy.
RA 77 applies to resi properties with regulated tenancies with high level of secutiry of tenure.

Question 3

What is an assured tenancy?

Answer 3

A tenancy of a dwelling-house let as a separate dwelling to an individual, who is a single (sole) or joint tenant, where the tenant or at least one of the joint tenants occupies the house as their only or principle home.

Question 4

What is the rent review process for a Rent Act 1977 tenancy?

Answer 4

Fair rent - must be assessed by a rent officer from VOA. Must consider:
* the state of repair of the property
* the character of the property, its locality and its age
* how much furniture is provided and what it is like
* any premium lawfully paid

Question 5

What is the rent review process for an LTA 1954 tenancy?

Answer 5

Check the lease for the frequency of the notice, serve rent review notice, can serve counter notice

Question 6

What is the rent review process for ATA 1995?

Answer 6

Default rent review arrangements are set out in sections 9-14 of the 1995 Act. Freedom of contract for provisions, but cannot be upwards only

Question 7

What is the rent review process for an AHA tenancy?

Answer 7

LL can demand rent is properly payable in repect of the holding from the next termination date (earliest date a tenancy could have been ended by a notice to quit i.e. first anniversary of the start of the term). Schedule 2 sets out rent review formula

Question 8

What is the rent review process for a Housing Act 1988 tenancy?

Answer 8

• Section 13 notice, cannot be used during first 52 weeks of contractural periodic tenancy.
• Cannot be issued more than once every 52 weeks.
• Must serve a notice of increase of rent in a prescribed form (Form 4)
• Period reflects notice required (period of a year, 6 months; less than a month, 1 month)

Question 9

What is the difference between a lease and a licence? What is the case law?

Answer 9

Leases grant exclusive possession, licences allow the owner to still use the land. Street v Mountford 1985

Question 10

What is FRI?

Answer 10

A full repairing and insuring lease (“FRI Lease”) is a lease in which the tenant takes on all of the costs for repairs and insurance for the property being leased from the landlord

Question 11

How did you manage the landlord and tenant at the Sparkford FBT?

Answer 11

Ensured frequent communication with both, calling the tenant a few days after posting to ensure they received the Heads of Terms and to check if they had any queries

Question 12

At Sandown, how did you/will you end the tenancy?

Answer 12

Serve break notice 6 months prior to break date in accordance with the lease

Question 13

What does ‘Without Prejudice’ mean and when would you use it?

Answer 13

Enables parties to negotiate freely with a view to reaching settlement, without fear that what is said or written will be used against them later in court.

Question 14

What does ‘Subject to Contract’ mean and when would you use it?

Answer 14

Neither party intends to be bound either in law or in equity unless and until a formal contract is made, and each party reserves the right to withdraw until such time as a binding contract is made

Question 15

What is a Tenancy at Will?

Answer 15

tenant occupies a property, with landlord consent, indefinitely, on the basis that either party can end the arrangement by giving immediate notice at any time. It can be both informal and in writing. A tenancy at will is usually only suitable for temporary, short term use.

Question 16

What are the pros and cons of a Tenancy at Will for landlords and tenants?

Answer 16

Pros: can be arranged quickly and there is not sufficient time to deal with finalising lease negotiations, terms, due diligence and the final lease. Secures occupation for the tenant and an income for the landlord.

Cons: tenants can be required to vacate a property at no notice. Landlords risk that the terms of the tenancy at will are not as detailed or protective as full lease terms.

Question 17

What are the pros and cons of being contracted out for landlord and tenant?

Answer 17

Good for tenant as they have a right to renew. Bad for landlord as not as free to use the land/select a tenant

Question 18

What happens at the end of the term in a lease protected by the LTA 1954?

Answer 18

Tenant has a right to renew, lease will continue under the terms of the expired lease until it is terminated or renewed by the parties

Question 19

At Sparkford, how did you approach negotiations when you had established the open market rent?

Answer 19

Had a site meeting, provided my client with a range to work within for a rental amount, then negotiated with the tenant within the range agreed with my client

Question 20

At Sandown, how would you advice have been different if the lease was protected?

Answer 20

Look at the grounds in Section 30, likely the landlord wanting to redevelop the site

Question 21

Were there conditions/timings for the break clause at Sandown?

Answer 21

Yes, 6 months notice was required prior to the break date

Question 22

At Sparkford, you prepared notices of creation, under what legislation were these prepared and what was their purpose?

Answer 22

Section 1(4) of the ATA 1995. States the tenancy will be and will remain an FBT and in agricultural use

Question 23

At Sparkford, what advice did you provide your client on a rental value and length of the FBT?

Answer 23

I advised a rental value of £95 per acre per annum and a length of 2 years, if longer then a notice to terminate with 12 months notice would be required

Question 24

At Sandown, how did you determine whether the tenant had security of tenure?

Answer 24

I checked the lease to see if there was a clause relating to security of tenure being excluded. Declaration would need to be made under Section 38. Can be statutory declaration under oath, served before signing the tenancy, or simple declaration at least 14 days before the start of the lease

Question 25

What repairing obligations were included at Sparkford?

Answer 25

Fencing, hedges, ground condition

Question 26

What do you need to provide at the start of a new residential tenancy?

Answer 26

Within 30 days of new tenancy, deposit protected in TDS, prescribed information, EPC, gas certificate, EICR, how to rent guide

Question 27

What deposit would you take for a residential tenancy?

Answer 27

deposit = 5 weeks rent

Question 28

What notice is required for a Rent Act rent review?

Answer 28

2 years notice for RR

Question 29

When could you not draft a lease?

Answer 29

LTA 1954 tenancy - solicitor to draw up

Question 30

What are the relevant timescales for an LTA 1954 Section 25 or 26 notice?

Answer 30

6-12 months

Question 31

What is ground A under section 30?

Answer 31

the tenant has obligations in relation to repair and maintenance under the current lease and the property is in disrepair

Question 32

What is ground B under section 30?

Answer 32

there has been a persistent delay in the payment of rent

Question 33

What is ground C under section 30?

Answer 33

the tenant has been/is in breaches of other terms of the existing lease

Question 34

What is ground D under section 30?

Answer 34

(different) the landlord is able to provide suitable alternative accommodation

Question 35

What is ground E under section 30?

Answer 35

the tenancy was created by a sub-letting

Question 36

What is ground F under section 30?

Answer 36

the landlord intends to demolish or reconstruct the property and it is not possible without the landlord recovering possession

Question 37

What is ground G under section 30?

Answer 37

the landlord intends to occupy the property or part of the property for the purposes of its own business or as its residence

Question 38

What compensation would a tenant be entitled to under ground F of s30?

Answer 38

The rateable value or two times the rateable value if the tenant has been in occupation for 14 years or more.

Question 39

How would you limit liability with repairing obligations?

Answer 39

Have a schedule of condition