Landlord and Tenant

Question 1

What are the differences between Arbitrator and Independent Expert.

Answer 1

Arbitrator governed by Arbitration Act 1996.
Independent expert uses neutral expert to resolve a specific issue based on their expertise.
Arbitrator is presented evidence. Independent expert does their own research.
Arbitrator not liable for negligence, IE in theory can be.

Question 2

What is the outcome called for Arbitrator or Independent Expert

Answer 2

Arbitration - Award
Independent expert - Determination

Question 3

What are the differences in power over cost between an arbitrator or independent expert?

Answer 3

A - Power over all costs
IE - No automatic power to determine cost, depends what lease says.

Question 4

How do you know if a lease has security of tenure?

Answer 4

Lease will state if the unit is inside or outside the provisions of the Landlord and Tenant Act 1954.

Question 5

What are the implications to the landlord if a tenant is holding over?

Answer 5

Landlord does not have a secure tenancy.

Question 6

What is the hierarchy of evidence

Answer 6

• Open market lettings
• Lease renewals
• Rent Reviews
• Independent expert determinations
• Arbitrator awards
• court determinations under l+t acct 1954
• hearsay evidence
• sale & leasebacks
• surrender & renewals

Question 7

What is included in a Rent deposit deed

Answer 7

Parties, deposit amount, purpose, holding, LL right to withdraw, tenant obligation, deposit return, interest, VAT,

Question 8

What are the general assumptions in a Rent Review clause

Answer 8

The property is vacant.
It would be let for a suitable term
Fit for use
Willing parties
No party in breach of lease

Question 9

What are the general disregards?

Answer 9

Tenant occupation
Any goodwill
Tenant improvements

Question 10

What if it was a license?

Answer 10

Any effect on rent or additional value because of a license.

Question 11

What is the structure of a lease?

Answer 11

Parties involved
Description
Lease Term
Rent
Responsibilities and obligations
Remedies for breach
Other clauses
Schedules

Question 12

What are the main types of Rent Review mechanisms

Answer 12

OMR
RPI RR
Upwards only RR
Stepped Rents

Question 13

What has to be done for a tenant to do their break clause?

Answer 13

1. Tenant has to be up to date on rent
2. Not in breach of their lease
3. Must be up to date on repair covenant
4. Must provide correct notice

Question 14

What are the 4 requirements of a lease

Answer 14

1 Exclusive occupation
2 Payment of rent
3 Duration for a specified term
4 If more than 3 years, terms must be in writing, signed and registered as a deed

Question 15

What case law relates to time of
the essence?

Answer 15

United scientific holdings ltd v burnley borough council

Question 16

What did it mean?

Answer 16

If time is not of the essence it must be specifically stated

Question 17

What is the maximum term county court can decide upon when deciding a lease renewal

Answer 17

15 years

Question 18

What is included in a section 25 notice

Answer 18

Name and address of LL + T
Proeprty address
Notice of date to end tenancy
Confirmation if lease is to be opposed or granted
Confirmation of date by which tenant must ask for new tenancy
LL proposals for new tenancy
recommendation to seek prof advice

Question 19

What is included in a Section 26 notice.

Answer 19

No more than 12 months not less than 6
Notice be in written
Must state tenants proposal for new lease

Question 20

What case law relates to lease renewals?

Answer 20

Dukeminster limited vs West End
Investments ltd

Question 21

What are the different types of rot?

Answer 21

Dry and Wet

Question 22

What is the maximum term County
Court can insist upon when deciding a lease renewal?

Answer 22

15 years

Question 23

3 instances where a license is appropriate?

Answer 23

Erecting of an advertising board
A right to park a car
A pop up shop, in a shopping centre for instance

Question 24

What was the L + T Act 1954 last amended?

Answer 24

2004

Question 25

How is a tenants compensation calculated under the 1954 act?

Answer 25

Rateable value Less than 14 years is 1xRV More than 14 years is 2xRV

Question 26

What is a balance sheet?

Answer 26

A statement of the business financial position and showing its assets an liabilities at a given date.

Question 27

What is a Section 30 notice

Answer 27

Sets out 7 grounds for opposition of a new tenancy

Question 28

What are those grounds?

Answer 28

Breach of repairing covenant Non payment of rent Other substantial breach Provide suitable accomodation Uneconomic subdivision Redevelopment Owner occupation

Question 29

What is involved in the 3rd party arbitration process

Answer 29

Agreement to progress to arbitration Appointment of arbitrator Evidence presented to arbitrator Arbitration hearing The award

Question 30

What is involved in the 3rd party independent expert process

Answer 30

Similar to arbitration however independent expert does their own explanations

Question 31

What is the fee basis for a Rent Review

Answer 31

3-5% of annual rent

Question 32

What is a section 21?

Answer 32

Section of L and T Act 1987. Relates to AST. No-fault eviction provision. Allows landlords to regain possession of a property during an AST.

Question 33

When can a tenant terminate a tenancy?

Answer 33

Break clause End of term Surrender the lease Forfeiture

Question 34

What is section 23

Answer 34

Application of the act

Question 35

What is section 24

Answer 35

Security of tenure provisions and continuation of tenancy (Holding Over)

Question 36

What is 24a

Answer 36

Interim rent

Question 37

Define interim rent

Answer 37

Rent payable during period between expiry of current tenancy + start of new lease

Question 38

What is section 25

Answer 38

Landlords notice to end or seek new lease

Question 39

What is section 26

Answer 39

Tenants notice to seek new lease

Question 40

What is section 27

Answer 40

Tenant notice to end the lease

Question 41

What is section 28

Answer 41

renewal of tenancy by agreement

Question 42

What is section 29

Answer 42

Order by court for a new tenancy

Question 43

What are sections 32-35

Answer 43

Terms of new lease

Question 44

What is section 34

Answer 44

Basis of valuation for new rent

Question 45

What is Section 37

Answer 45

Compensation provisions

Question 46

What is section 38a

Answer 46

Contracting outside the act

Question 47

What is section 40

Answer 47

A notice requesting information about either party

Question 48

What is detailed in section 44

Answer 48

Definitions of a competent landlord

Question 49

What is the L+T Act 1985

Answer 49

Outlines roles and responsibilities of the Landlord and Tenant

Question 50

Where would you find information on the hierarchy of evidence?

Answer 50

Comparable evidence in retail estate valuation

Question 51

What is included in a heads of terms for a Lease renewal?

Answer 51

Conditions of the lease

Question 52

What is included in a lease if it is outside the L+T Act

Answer 52

Statutory declaration stating so

Question 53

What is the primary purpose of 'Without Prejudice save as to costs?

Answer 53

Provide a party during a dispute some protection against the high costs of dispute resolution.

Question 54

What dispute resolution offer can be made for a Lease Renewal?

Answer 54

A Part 36 offer under part 36 of the civil procedure rules.

Question 55

Is there a differently accepted hierarchy of evidence in Rent Reviews in comparison with the categories identified in the RICS professional standard: Comparable evidence in real estate valuation 2019?

Answer 55

Yes - The Handbook of Rent Review (Reynolds and Fetherstonhaugh)

Question 56

How is a dispute resolver usually appointed?

Answer 56

Leases provide for the appointment. Via an application to the Dispute Resolution Service (DRS) of RICS

Question 57

How much does the application usually cost?

Answer 57

£425

Question 58

What are the 3 grounds on which you can appeal to a high court on the arbitrators decision within 28 days?

Answer 58

1. A challenge to the tribunals jurisdiction 2. On a point of law 3. Serious irregularity

Question 59

What is the Landlord and Tenant Act 1995

Answer 59

Act that makes provisions for a tenant to be released from their covenants upon assignment of a lease

Question 60

When can an independent expert award on costs?

Answer 60

No automatic power to determine costs, depends what the lease says. Where applicable, costs usually extend to independent expert costs only, not other parties costs.

Question 61

Does a tenant have security of tenure after a section notice has expired?

Answer 61

No

Question 62

What can a landlord do to if a tenant remains in occupation after the notice expires?

Answer 62

Lease has technically expired. Legal action to retake possession.

Question 63

What are the two types of section 25 notice?

Answer 63

Friendly and hostile.