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Flashcards in Landlord And Tenant Deck (43)
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What actions are required by a surveyor for lease renewal?

Check CoI
Agree ToE
Understand clients objectives
Get information
Read information
Check time
Inspect and measure
MR valuation
Prepare report
Agree strategy/ who serves notices
Open negs
Conclude negs
Instruct lawyers to prepare new lease
Submit invoice


What actions are required by surveyor on a rent review?

Check CoI
Agree ToE
Understand clients objectives
Get information
Read information
Check time
Inspect and measure
MR valuation
Prepare report
Agree strategy/ who serves notices
Open negs
(3rd party determination)
Conclude negs
Submit invoice


What are the assumptions of a rent review?

Available on open market
Fit for immediate occupation
Enjoyed period for fitting out


What are the usual disregards in a rent review

Goodwill on tenants occupation
Goodwill attached to the property
Tenant improvements if consent granted


What are the basis of valuation in a rent review?

Upwards only
In line with RPI


What does the code of leasing business premises say about rent reviews?

Clear clause
Headline rent not to be used
LL or T able to start it


What’s a Calderbank Offer

Can achieve an early resolution to dispute
Without prejudice save as to cost
Loosing party to pay costs
Offer to include time limit (usually 21 days)
Must be genuine


What is the hierarchy of evidence in a rent review?

Open market transaction
Independent Expert
Court determination
Sale and leaseback
Surrender and renewal
Inter-company arrangements


How is the third party determination decided?

Read the lease


What is the cost of a third party determination application and who do you apply through?

Apply through President of RICS

£395 plus VAT


Tell me about arbitrators

Members of the chartered institute of arbitrators
Acts on evidence submitted
Has the power to disclose
Right to appeal through high court on point of law
Not liable of negligence
Acts in accordance with Arbitration Act 1996
Outcome called Award


Tell me about independent experts

Has a duty to investigate
Can use own knowledge
Has no power to disclose
No right to appeal
Can be liable
Outcome called a determination


What is an advocate?

Represents their client in court
Only has to disclose what they with to
Acts in best interest of client
Must act with integrity


What is an expert witness

Must be impartial
Duty is to the court
Evidence must be work of the surveyors
RICS Practice Statement - surveyors acting as expert witnesses 2014


What’s in a rent review memorandum?

Name of LL and T
Address of property
Date of lease and RR
New agreed rent
Signed and dates by both parties

Can also be recorded by:
Independent experts decision
Arbitrators award
Written acceptance of Calderbank offer


What are the surveyors fees based on for a rent review

% saved
% agreed


What are the main sections of the 1954 Act?

23 - application to T
24 - security of tenure provisions and continued tenancy - holding over
25 - LL Notice - end or new
26 - T notice for new
27 - T notice to end
28 - renewal of tenancy agreement
29 - order by court - new
30 - LL ground of opposition
32-35 - terms of new lease
37 - compensation
38A - contracting out
40 - notice requesting info on LL/ T
44 - Definition of competent LL


What does a tenant have to ensure in order keep protection?

Is a tenancy
Used for business
Occupy part
Occupy more than 6 months
Must not be exempt or excluded (tenancy at will/ services tenancy)
Competent LL


How does a LL request new tenancy and what must the notice comply with?

Serves 6-12 month before stated exp date
Given by competent LL
For whole premises
State date of determination
In proscribed form and inform T of rights
Friendly - propose new terms
Hostile - state ground of opposition


What must a S25 notice include?

Name and address of LL & T
Address of property
Date to end tenancy
New lease opposed/ granted
Response date
New terms/ grounds of opposition
Recommend professional advice


How is a S.26 notice served?

6-12 months before before requested new date
In proscribed form
New terms


How does a protected tenant terminate lease?

Either by vacating at expiry
Serving a S.27 notice giving 3 months notice after expiry date


What grounds does a landlord have to oppose a new lease?

a) breach of repairing covenant
b) persistent delayed payment of rent
c) other substantial breach
d) provide suitable alternative accommodation
e) uneconomical subdivision
f) demolition or reconstruction (prove funding, planning, substantial work and necessity to gain VP)
g) owner occupation (owned 5+ years)

A-E decided in court
F-G mandatory


1954: what case heard that LL is entitled to oppose new lease or redevelopment grounds even where the redevelopment is devised solely for evicting the tenant

S. Franses LTD v The Cavendish Hotel (2017)

Being appealed


S.Fransis v Cavendish Hotel

LL entitled to refuse new tenancy on the grounds of refurbishment even if it is solely to evict the tenant


1954: what case related to competent LL wanting to occupy building for own use?

Frozen Value v Heron Foods

LL must have been competent for previous 5 years otherwise clock resets


Under the 1954 Act, when is a T entitled to compensation?

Grounds E-G

< 14 years = 1x rateable Value
> 14 years = 2x rateable Value


How does a LL contract out of the act?

Under S.38A

Serve a health warning

T must then make deceleration in response confirming that he has received the notice and accepts terms

Simple deceleration - at lease 14 days prior to committing tot the lease
Statutory declaration - less than 14 days (must be signed in front of independent solicitor)


1954: what case is about a landlord opposing to new tenancy used redevelopment grounds only to change his mind after tenant had found new space at higher rent? And what was the out come?

Inclusive Technology v Williams (2009)

Court found that landlord should have informed T of decision not to redevelop and had to pay difderence in rent


How long a lease can court grant a new tenant?

15 years