Landlord and Tenant Flashcards

Question

What 2 potentially serious consequences could missing a trigger notice have (L/T)?

Answer 1

o Landlord could miss a review | o Tenant could be stuck with rent proposed by Landlord

Answer 2

• Occasionally the lease provides for automatic rent reviews (no need for a notice to be served)

Answer 3

o Normally upwards only to the open market rent using standard assumptions. o Other bases of rent review include  indexation (often RPI or CPI caps and collars), upwards only • Traditionally been linked to RPI, emerging trend for tenants seeking CPI basis, which is lower than RPI  turnover (only) rents (not usually subject to review – the % turnover is usually set at the outset)  stepped increases (again unusual to have rent review procedure)

Answer 4

o Time is not normally of the essence unless - the Burnley and Cheapside cases: o (United Scientific Holdings Ltd v Burnley Borough Council 1977) (Cheapside Land & Development Co Ltd v Messels Services Ltd 1977)  Time is of the essence where: • The lease says so • The lease makes it clear that time limits are strict (e.g. linked to Ts option to break) • There are deeming provisions • Tenant serves notice making time of the essence (Barclays bank case, research)

Answer 5

o Property available to let (e.g. vacant possession) on open market by willing tenant and willing landlord for a term of years as stated at the market rent (the notional or hypothetical tenant) without a fine or premium o Property is fit and available for immediate occupation and use (if damaged, it has been reinstated) o All covenants observed by landlord and tenant (i.e. no works undertaken by tenant that could diminished rental value) o Property may be used for purposes set out in lease (i.e. lawful use)

Answer 6

• FOUR usual disregards (those matters in S34 LTA 1954, commonly referred to as ‘the usual disregards’): o Any effect on goodwill (the rent) (due to) on tenant’s occupation o Ignore goodwill attached to the property o Any increase in rental value caused by tenant’s improvements (if landlord consent been granted for the works i.e. would be unfair to penalise the tenant for their investments, unless they did so without consent) o Liqour licence (any licences (such as alcohol) that is personal to the Tenant)

Answer 7

o Depends on the wording of the review clause however usually they are disregarded if they are carried out in the last 21 years and documented appropriately (i.e. registered under the 1927 Act)

Answer 8

May warrant adjustment, depending on comparable evidence

Answer 9

o User as stated in lease (Plint Properties v Mott Hay & Anderson – use restricted to hypothetical term consulting engineers, -32% reduction) o The user assumption in RR provisions takes precedence over lease user provisions o User Clause – are there any restrictions? In the interests of good estate management the Landlord may incorporate a tight user clause but, this may reduce the rent obtainable on review  The more restrictive the user clause: • Then the greater the case for a reduction, and • The higher the reduction  A restrictive user clause does not automatically result in a reduction.

Answer 10

Differences between leases that may justify an adjustment are restrictions on assignment / sub-letting and AGA’s (authorised guarantee agreements)

Answer 11

Normally 5 years but the longer the review period the HIGHER the rent. Usual adjustments are 1% to 2% for every year.

Answer 12

Unusual obligations on the tenant? Is it FRI? A wider than normal repairing liability can reduce the rental value  Adjustments may need to be made where the differences between the comparables and the subject property are: • IR/Full Repair • Full Repair / Fair wear and tear excepted • Full Repair / Repair, renew, rebuild

Answer 13

Usually easy to quantify – the annual cost of the building insurance

Answer 14

The lease dictates the rental definition, therefore you cannot describe rent review rent as Market Rent (difference assumptions)

Answer 15

o The Court considered whether a hypothetical lease at rent review would contain a rent review clause. o It was held that in the absence of clear wording that could be interpreted otherwise, future rent reviews in the actual lease should be considered in the hypothetical lease in agreeing the market rent. (Normally 5 years but the longer the review period the HIGHER the rent. Usual adjustments are 1% to 2% for every year.)

Answer 16

This is length of term to be valued (also known as the hypothetical term). If silent, assume the residue of the term (Basingstoke and Deane Borough Council v Host Group 1987).

Answer 17

Some rent reviews clauses in older leases require the landlord to specify the rent in the trigger notice. The clause will state that if the tenant does not serve the appropriate counter-notice within a specified time, the tenant will have deemed to accept the new rent. Therefore (I assume, check) in modern RRs if you do not accept, the Landlord would have to go to 3rd party, and therefore no risk of accepting a ridiculous rent proposal?

Answer 18

The courts have held that this is admissible provided it supports circumstances which could have been known about the effective rent. A timeline can be used to devalue post-dated evidence.

Answer 19

This is when the basis of valuation cannot consider any incentives agreed when analysing a comparable of a letting to arrive at a net effective rent. These are normally now not agreed. I assume were historically useful for larger landlords wanting to get increasingly higher headline rents.

Answer 20

o open market lettings (POTENTIALLY SUBLETTING, DEPENDENT ON LEASE TERMS) o rent reviews & lease renewals (independent expert then arbitrator) o hearsay evidence o sale and leasebacks o surrender & renewals o inter-company arrangements

Answer 21

* Calderbank v Calderbank 1975 – divorce case that established. * The use of a Calderbank offer can achieve an early resolution of a dispute and prevent costs from the escalating (NOT avoid costs, but mitigate them) * A tool for influencing costs and negotiations in rent reviews as the losing party will have to pay the other side recoverable costs. * Avoids the equal awarding of costs (arbitrator is obliged to make an award for costs). * It must be a genuine offer to settle and not simply used as a mechanism to influence costs and/or pressure the other party. Costs usually awarded to successful party – need to be confident. * Letter serves must be headed

Answer 22

• Letter serves must be headed ‘without prejudice save as to costs’ (i.e. ‘save as to costs’ means only revealed to dispute resolver once decision made, then used to determine costs) For a calderbank offer to be effective it must contain a) An unconditional written offer to settle the rent review b) A reasonable proposal regarding costs incurred up to the date of the offer (normally this would be that each party bears their own costs plus 50% of the Arbitrators fees) c) A time within which the other party may accept the offer (usually 21 days)

Answer 23

• For lease renewals, there is a similar mechanism – (under part 36 of the Civil Procedure Rules 1998) must be made in writing and remain open for acceptance for a minimum of 21 days.

Answer 24

• The party making the offer or both parties should ask the Arbitrator to make an award which will be final except for costs (too late to produce a Calderbank after an award with costs)

Answer 25

If the Arbitrator determines a rate equal to or higher than the Landlords offer o Then the Arbitrator should award that the Tenant pays Landlords costs and the Arbitrator’s fees from the date the offer ought reasonably to have been accepted.

Answer 26

The purpose is not to avoid costs, but to mitigate costs.

Answer 27

* Arbitration Act 1996 governs the rent review procedure, and the procedural code for court applications (e.g. appeals, or claims to set aside an expert determination, claims of negligence) is CPR 1998 * The other, and greater part of the law is case law, which has developed since the 1970s

Answer 28

• Read the lease (RTL) to establish the method of determination within the rent review clause.

Answer 29

• RICS Guidance Note – ‘surveyors acting as arbitrators in commercial property rent reviews’ (2013) clarifies how to deal with conflicts and the duty of an arbitrator.

Answer 30

• The cost of the application for third party determination by the President of the RICS is currently £425

Answer 31

RICS Conflicts of Interest Guidance Note (2012).

Answer 32

Upon the determination of the new rent the balance of any increased you will be payable from the review date to the quarter date after determination interest is payable: unfair if any higher than the base rate

Answer 33

o A or IE will be appointed and write to both parties o The A will set out directions, written submission of hearing, statement of agreed facts and timeline for submissions. o Parties will confirm acceptance. o Written reports are submitted. o Award. o Then settlement for costs.

Answer 34

• RICS Guidance Note on Independent Expert Determination 2016

Answer 35

* Has detailed knowledge of the market as a valuer * Appointed by the President of the RICS by the Dispute Resolution Service but not bound by the judicial rules. * Bound by terms of the lease, may be binding, depends on contract * No judicial function * No appeal against the decision (other than in very rare circumstances (incorrect interpretation)) but can sue for negligence (very rare) * There is no relevant legislation so acts with an informal procedural timetable - can involve a hearing or dealt with by written representations * Good when lack of market comparables and need to be up to date * No power to order disclosure * Orders costs as set out in lease but only has power over their own costs * Outcome - called a determination

Answer 36

o A rare example of an expert’s determination of a rent review case not being held to be binding o It was held that this decision was based upon incorrect interpretation of rent review clause.

Answer 37

* 1996 Arbitrator Act – quasi-judicial process * Arbitrators can be appointed by RICS President using the Dispute Resolution Service and be a member of the Charted Institute of Arbitrators. (i.e. if it is not possible to agreed on the 3rd party) * Format decided by arbitrator to include an agreed statement of facts & timetable for submission. The statement of agreed facts is a summary of the points agreed between both parties, such as relating to the lease terms, floor arears and comparable evidence. * Can decide how to hear the case and order costs. * Will provide a reasoned award unless agreed otherwise with parties (i.e. award must always contain full reasoning, therefore you are able to comment on the other sides submission) * Can only use evidence submitted by the parties (evidence of fact, hearsay and/or form an expert witness) * Immunity from negligence and can order disclosure (OTHER THAN privileged documents) - guarantee to show your evidence (CPR governs + s34 Arb Act, entitles parties to obtain details of other side's evidence, secure witness attendance or production of documents by third party, when they would otherwise prefer to only show the most favourable evidence) * Award o More costly and generally slower than independent expert determination.

Answer 38

o Rent disputes under £50,000 (i.e. smaller properties) – use Independent Expert o As it gets more expensive, perhaps use Arbitrator

Answer 39

* In a falling market, when acting for a landlord, an arbitrator would be preferable. (as the information provided may be stronger) * In a rising market, when acting for a landlord, an independent expert would be preferable and vice versa for a tenant.

Answer 40

You can only Appeal to the High Court within 28 days of the award on THREE specific grounds: 1. A challenge to the tribunal's jurisdiction 2. On a point of law 3. Serious irregularity

Answer 41

* An advocate represents their client at a hearing or in court * RICS Professional Statement & Guidance Note ‘Surveyors Acting as Advocates 2017’ * It applies to evidence given to arbitration and independent expert hearings where the advocate represents their client. * Needs only to disclose all matters which they wish to do so * Duty is to act in the best interest of their client * Must act with integrity.

Answer 42

* RICS Practice Statement and Guidance Note ‘Surveyors Acting as Expert Witnesses (4th edition) 2014 * It applies to evidence given to arbitrators and independent experts

Answer 43

1. The experts evidence provided by a charted surveyor must be, and must be seen to be impartial and objective. 2. The duty of the surveyors is to the court and this will override any obligations to the client 3. The evidence must be the independent work of the surveyor 4. The surveyor must also believe that the facts upon which they are rely are complete and true and their opinions are correct.

Answer 44

* Contingency incentives are not allowed * The fee basis must be clearly stated in terms of engagement * These principles are also stated within the Civil Procedure Rules, 1998 * The expert witness must sign a Statement of Truth at the commencement of their evidence

Answer 45

* Rent review: independent expert or arbitrator | * Lease renewal: Court or PACT

Answer 46

• Looking for breaches of Ts Covenant: ``` o Repairs o Unauthorised alterations/improvements o Unauthorised assignment/subletting o Breach of user o Breach of legislation ```

Answer 47

1. It is a tenancy 2. The premises must be used for a business (i.e. must be occupied by T for business purposes, business includes trade, profession or employment) 3. There must be occupation of at least part of the premises by the tenant 4. There must be occupancy of more than 6 months 5. It must not be an exempted or excluded tenancy (such as a tenancy at will or service (i.e. mining/agricultural) tenancy) 6. There must be a competent landlord (freeholder or superior tenant with more than 14 months to run), (S.44)

Answer 48

o Agricultural holdings o Mining leases o Residential tenancies o Tenancies granted as a condition of employment (think about what this means) o Tenancies not exceeding 6 months unless there is a provision for extension or, T has been in occupation for more than 12 months

Answer 49

o (a) Ts on annual tenancies can remain in occupation on the agreed terms until the tenancy is terminated in accordance with the Act. L must terminate the tenancy in accordance with the provisions of the Act if he wishes to increase the rent, or change some other term of the tenancy, o (b) L can only make T leave the premises (other than by obtaining a Court Order for forfeiture of the lease) if he terminates the tenancy in accordance with the Act, and can prove to the Court one or more of the seven grounds listed in the Act.

Answer 50

o Tenancy will continue until L or T serves a notice. o ‘holding over’ until either the landlord or the tenant serves a notice to terminate the lease in accordance with the provisions of the Act.

Answer 51

o 1. The Landlord serves a notice of termination under Section 25  i) Time is of the essence. Must be served between 12 months and 6 months before contractual expiry of the tenancy OR the date specified in the notice. If the Landlord objects to a new tenancy then a separate notice must be served stating reasons (s.30) o 2. The Tenant requests a new tenancy under Section 26  i) IF the tenant has not received a Section 25 notice. Again, within 6 to 12 months. The tenant can request a new tenancy after this period. The tenant may propose the date, property, rent and other terms in this notice o 3. The Tenant serves a notice of termination under Section 27  i) Must be served by the tenant within the last 3 months of lease but not later than end of tenancy o 4. The Landlord and Tenant agree the terms of new lease under Section 28

Answer 52

* Landlord’s notice served with a date not more than 12 months and not less than 6 months before the date for the termination of the tenancy to be specified. It does not have to be served on a quarter day. * This can be taken two ways: the landlord wishes to bring the current tenancy to an end and grant a new tenancy on renegotiated terms (friendly) or terminate the tenancy (hostile).

Answer 53

• You can’t serve a Section 26 notice over a Section 25 notice, unless the Section 25 notice has been served incorrectly (i.e. not in format prescribed by Act, set by Law Society)

Answer 54

o Given by a competent landlord and to be given to the tenant o Parties can extend time limits by agreement o Maximum term of 15 years can be granted by the court

Answer 55

• If you undertake a lease renewal negotiation and you pass the date for a new lease/termination as specified in S25/S26 notice, the tenant loses their security of tenure unless: o There is a new lease in place o Either party has applied to court o The parties have agreed in writing to an extension of their statutory period (stay)

Answer 56

o Name and address of the landlord and tenant o Address of the property o Notice of the date to end the tenancy (a ‘hostile’ or ‘friendly’ notice) o Confirmation on whether a new lease is opposed or granted o Confirmation of the date of response required o Landlord’s proposals for a new tenancy to include the proposed rent if ‘friendly’ notice o If the landlord opposes a new tenancy (hostile notice), the ground(s) for opposition must be stated o A strong recommendation to seek professional advice

Answer 57

Depends: it gives the Landlord more time to find a new Tenant, therefore advantageous because it may push the Tenant for an early answer. If the Landlord is laissez-faire, runs the risk of a void as otherwise 3 months notice is all that is necessary towards lease end (will also obviously impact MV)

Answer 58

o Potentially do nothing. o However, Tenant may leave with 3 months notice. o Doing nothing will also invariably impact Market Value of investment (unsecure term/overrented)

Answer 59

o If the property is over rented (impact on Market Value – unsecure term/overrented)

Answer 60

o S.25 under objection on ground under S30.

Answer 61

o Write to the Tenant first to threaten to go to Court - require reply by 5pm on date or face paying costs o Apply to Court

Answer 62

• Tenant for a term of years certain exceeding one year o who has not received a Section 25 Notice from L o may, in the period between 12 months and 6 months before the end of the tenancy, request a new tenancy under this Section o can also request a new tenancy any time after this 12 to 6 month period

Answer 63

o (i) the commencement date of the new tenancy which may be any time up to 12 months after the date of the notice. o (ii) the property comprised. o (iii) the rent payable. o (iv) the other terms.

Answer 64

• Landlord cannot then serve a Section 25 notice but can serve a counter notice within 2 months specifying ground(s) for opposition to the new tenancy, or opposition to the proposed terms. Failure to serve the counter notice will result in L/L losing his right to object to a new tenancy but not the right of objection on the new terms.

Answer 65

o There is no need for the T to serve a counter notice o Tenants court application with 2-4 extended to expiry (WHAT?) o L and T may agree to extend date for T’s court application

Answer 66

o If the tenant wants security of tenure certainty (have that anyway, but puts them in the driving seat) o Or if the property is overrented.

Answer 67

* This is served within the last 3 months of the tenancy and not later than the end of the tenancy. * If the tenant moves out prior to the lease expiry date then no notice needs to be served if the property is vacant (i.e. just hand back keys and move out on expiry) (Esselte AB Pearl Assurance plc, 1997) * It does not have to be served on a quarter day

Answer 68

• Validity of the notice - When acting for a client, it is always important to check that the notice served is valid, in the prescribed form required in accordance with the Act, upon the correct named party.

Answer 69

• If the L & T agree to the terms of the new lease the current tenancy will continue until the commencement of the new tenancy and sections 24-28 will NOT apply

Answer 70

• At this point either party can serve a s.40 notice requesting information (this can be served within the last 2 years of the tenancy) and can include o Landlord requesting details of occupation and/or sub tenancies o Tenant requests details of superior landlord • From 1st June 2004 – both parties have 1 month to supply the information when requested

Answer 71

o a) The property (usually the same as in the old tenancy) o b) The length of lease (not exceeding 15 years to reflect common rent review pattern) o c) The Rent (the rent the property might reasonably be expected to let in the open market disregarding  i) Tenants previous occupation  ii) Any goodwill  iii) Any licences  iv) Improvements if carried out by the tenant other than as a lease obligation or if carried out within last 21 years

Answer 72

• A, B and C are fault grounds (i.e. the landlord has to prove the tenant ‘ought to’ have repaired/paid rent/not breached. This results in more strict consideration by Court, and potentially charitable outcome for tenant if can prove a renewal would result in remedy of the issues)

Answer 73

No compensation payable for A/B/C (fault grounds), whereas E/F/G are non-fault (compensation payable), and D in the middle is different (no compensation payable, tenant not at fault, but if successfully opposed then by definition tenant shouldn’t be compensated)

Answer 74

a) Breach of repairing covenant b) Persistent delay in paying rent c) Other substantial breach d) Provide suitable alternative accommodation e) Uneconomic subdivision (compensation payable) f) Demolition or reconstruction (compensation payable) g) Owner occupation (compensation payable)

Answer 75

o Need evidence of substantial breaches and that the tenant ‘ought to’ have repaired, and whether the tenant is likely to remediate if a new lease is agreed

Answer 76

o Should prepare a schedule of arrears, timetable showing correspondence and any enforcement action taken o Consideration of whether tenant ‘ought to’ have paid rent, and if landlord will be protected in future/by what remedies (potentially inclusion of rental deposit in new lease etc.)

Answer 77

o Refusal to grant new tenancy if Tenant is in contravention of planning regs, even though that did not breach the tenancy

Answer 78

o Court will consider how the premises were offered by the Landlord (i.e. properly), and whether reasonable alternative in terms of lease terms and accommodation (size, tenants business, location) o Very rare occurrence

Answer 79

o Designed to prevent a serious prejudice where landlord has inherited sublettings of part created by the landlords tenant (which are uneconomical) o Unusual, rare

Answer 80

o Landlord must provide firm intention, prove funding and planning, substantial work and necessity to gain vacant possession and an ability to redevelop provided VP is secured.

Answer 81

• Landlord must have owned property 5 years & prove intention to occupy and/or run business

Answer 82

* Grounds a) to e) are discretionary and the court will decide whether it is reasonable. * Grounds f) and g) are mandatory - i.e. if the conditions are met, the Landlord is guaranteed possession.

Answer 83

• The court will normally order the tenant to vacate the premises 3 months after the date of the determination in court.

Answer 84

o Landlord can double the rent under the Landlord and Tenant Act 1730 o The double rent is paid from the date the Landlord gives notice.

Answer 85

o Court held that a landlord is entitled to refuse the grant of a new business tenancy on redevelopment grounds even where the redevelopment is devised solely for evicting the tenant and confers no other benefit to the landlord. The case was then overturned in the Supreme Court, who found that the Landlord had to have a genuine intention to redevelop (another tenant-friendly decision).

Answer 86

o Tenant had a lease on a shop in Mayfair. When taking the lease, the landlord agreed a side letter allowing a lower rent, which the landlord could terminate in the event of any breach. The tenant was inadvertently late with a rent payment and the landlord terminated the lease. o The court held that the landlord’s termination right was a penalty clause and unenforceable. This was because the lease and side letter were part of the same deal and had to be read together.

Answer 87

o The court held that the facts underlying grounds (a) to (c) will need to be established at the date of the hearing and the statements given in a notice must be given honestly and truthfully.

Answer 88

o This case concerned the basis on which landlords can oppose a business tenant’s application under the Act for a new lease when the landlord wishes to use the property for his own purposes. o The court found that this was unlikely and dismissed the landlord’s objection to granting a new lease. o The landlord could not demonstrate to the court that he had a genuine intention to run the newsagents’ business given his age (he was in his 60s) and had recently sold some other business. o A landlord cannot oppose a lease renewal where it only intends to occupy for a short time, particularly if there is evidence of an intended sale or re-letting.

Answer 89

o This case relates to the landlord wishing not to renew a lease if it planned to occupy the premises for their own purposes. o The tenant had tried to seek a new lease as it was against the landlord’s plans to operate the terminal itself and open it up to third-party users o The court held that the landlord did not have to renew the lease on the grounds that it could demonstrate clear intentions to occupy the holding for the purposes of its own business

Answer 90

• Section 37 – if the landlord obtains possession due to a successful Section 25 application, tenant due compensation for disturbance IF the tenant has not breached the terms of the lease. • 14 years plus occupation – Rateable value x2 • Less than 14 years – Rateable value x1 • RV is that as at the date of the hostile S25 / S26 counter notice • Could also get compensation for improvements under Part 1 of the Landlord and Tenant Act 1927 o The Court can also award compensation for damage or loss sustained by the Tenant as a result of misrepresentation or concealment.

Answer 91

o either party wishing to change terms of the lease will have to satisfy the 4 tests: 1. Has the party demanding the change shown good reason? 2. Will the party resisting the change be adequately compensated? 3. Will the adjustments materially impair the conduct of Ts business? 4. 4. Is the variation fair and reasonable between the parties?

Answer 92

* The valuation date is the date of commencement of the new lease as stated on the notice. If the lease renewal goes to court, the date of commencement of the new tenancy will be 3 months and two weeks from the date of the hearing at which the court determines the rent and makes the order for the new tenancy. * The court should assess the rent based on the best available evidence at the date of the hearing

Answer 93

1. Regard to the terms of the new tenancy 2. There is a willing landlord and willing tenant 3. The premises are to be let with vacant possession 4. Any effect on rent of the operation of the Landlord and Tenants (Covenants) Act 1995 must be considered. (This relates to the effect of releasing the tenant from liability upon assignment or a subsequent assignment if an AGA is executed).

Answer 94

• If the rent agreed by court, there are FOUR matters which are disregarded in the valuation as set out in Section 34 of the Act: 1. Any effect on rent of the tenant’s occupation 2. Any goodwill in the tenant’s business attaching to the premises 3. Any effect on rent improvements carried out by the tenant – unless the works were undertaken as an obligation to the landlord or completed more than 21 years before the date of the application for a new tenancy. 4. In the case of licensed premises, any effect on rent of additional value because of a license belonging to the tenant.

Answer 95

* Section 24a of the Act * The interim rent is the rent paid from the date of the landlords application under s.24(a) or the date specified in the notice whichever is the LATER * An interim rent is the rent payable by a business tenant under the Act for period of occupation between termination of the former tenancy and the commencement of a new lease * Either party may apply (previously only the landlord). Once one party has, the other may not (important in a falling market).

Answer 96

* Rent to be paid from end of fixed term tenancy until new rent starts. * The date from which the interim rent is paid is known as ‘the appropriate date’

Answer 97

o Tenant is able to apply for an interim rent as well as Landlord o the Interim Rent is the rent if the old tenancy continues under S24. It is the rent under the new tenancy unless L or T show otherwise i.e.  Different valuation dates  Different terms of old and new tenancy  Interim rent can be adjusted if market conditions change significantly over the period it is paid, but is normally the Market Rent o No cushioning effect now (used to be approximately 10%) research what this means

Answer 98

* Section 38A of the Act sets out the procedure to be followed for the Landlord to contract outside of the Act. * There are a number of reasons why a letting may be contracted outside the security of tenure provisions of the Landlord and Tenant Act 1954 to include: o A requirement of the head lease to grant any subletting outside of the Act o The landlord will want to re-occupy the property in due course o The landlord wishes to redevelop the property at the lease end o The rent may be lower o The landlord wants future flexibility

Answer 99

• When the lease ends, the tenant has no statutory right to remain/seek compensation for leaving.

Answer 100

• Landlord must ensure the premises are vacant or ensure new lease is in place at the lease expiry date. No rent should be collected until the new lease has been completed as the acceptance of rent could lead to a protected new tenancy.

Answer 101

• If terms have not been finalised for a new lease, but the landlord is happy to grant the tenant a new lease, then a tenancy at will is required to ensure that the tenant cannot claim statutory compensation for the duration of the period between the expiry of the old lease and the commencement of the new lease.

Answer 102

o The landlord is required to serve a notice on the prospective tenant, warning that the proposed lease will not be protected. This is known as a ‘health warning’. o The proposed tenant must then make a declaration in response, confirming that he has received the notice and accepts its terms. o This procedure must be completed before the lease is signed. o There are two types of declaration: 1. Simple declaration – given when the parties have at least 14 days prior to committing to the lease. 2. Statutory declaration – given when the parties have less than 14 days prior to committing to the lease. If this case, a statutory declaration must be made before an independent (not the proposed tenants retained) solicitors.

Answer 103

* Defined under Section 44 as the person / body upon whom a notice should be served or who should serve the notice. * Must be a freeholder or superior tenant with unexpired term of over 14 months.

Answer 104

• County Court following the Civil Procedure Rules 1998 o Can be issued at any time after proceedings are issued. o Following pre-action protocols o Used only for anticipated or on-going court proceedings o A Part 36 offer is similar procedure as a Calderbank offer (‘without prejudice save as to costs’) to induce the other party to settle (rules updates in April 2015) if the offer is genuine attempt to settle. o Must be made in writing and clear that it is made in relation to Part 36, it can be accepted at any time unless expressly withdrawn IN WRITING. If accepted then the other side bears costs up to that point. o Offer can be withdrawn. o The offer is only open for 21 days. After this time period, it can still be accepted but it is possible for the offer to be withdrawn by the party who made it

Answer 105

• Professional Arbitration on Court Terms (PACT) o Launched by RICS & Law Society from 1997 - an unopposed lease renewal can be determined under the P.A.C.T. service. o RICS encourages its use as an alternative dispute resolution service to court o It offers an alternative form of determination for unopposed renewals (can be used for other disputes, v. rare though) ``` o Advantages include:  faster,  less expensive,  greater flexibility and control ,  a full court hearing is avoided,  decision by the surveyor acting in the role of an arbitrator rather than made by a judge. ``` o Only an option if both parties agree to do it.

Answer 106

o In-court PACT is designed to be used for an unopposed new tenancy where one of the parties has already made an application to the court to fix the terms of the new tenancy.

Answer 107

o Out-of-court PACT should be used when no court application has been made by either party, and the parties agree to a postponement of such application pending an out-of-court PACT resolution.

Answer 108

o The normal service of notices must take place and the necessary applications to court made o Both parties agree which points are agreed and which are to be decided by the third party o Court needs to give consent order binding on both parties o The arbitrator is nominated by the President of the RICS or Law Society o The decision is binding upon both parties

Answer 109

o Both landlord and tenant could apply for interim rent o Landlord can now initiate renewal process by setting out terms in S25 notice o Contracting out does not have to be in Court o Courts cannot grant terms in excess of 15 years o No time limit on Tenant responding to Landlords notice

Answer 110

o Security of tenure for residential tenancies. | o All 54 Act tenancies were converted 15 Jan 1989 to the Local Government and Housing Act 1989.

Answer 111

o You cannot unreasonably withhold consent. o S18 served at expiry and is the damages payable – the loss in landlords reversion. Sets out procedures for tenants registering their improvements.

Answer 112

Allows for hearsay evidence but does require proof i.e. record keeping

Answer 113

To pay rent, to pay business rates, to use property in a tenant like manner.

Answer 114

The complete and voluntary transfer of title to real estate from one person to another.

Answer 115

``` o Forfeiture, o surrender, o merger, o disclaimer (due to insolvency), o break clauses, o lease expiry and service of notices under the landlord and tenant act 1954 and negotiation ```

Answer 116

Aim of legislation to ensure that a statutory duty exists on the landlord to deal with consents (e.g. alienation) diligently and not the be unreasonably withheld or delayed (i.e. within a reasonable time). Failure to do so can result in a successful claim for damages.

Answer 117

States that subletting should be allowed at market rent and not passing rent, if market rent is lower.

Answer 118

* Relates to the assignment of leases and came into effect on 1st January 1996 (‘new lease’) * The act abolishes privity of contract for new leases – i.e. the original tenant no longer remains liable (‘released’ at lease expiry or subsequent assignment) * Section 16 however allows the L to guarantee the ‘performance’ of the assignee (more scope for setting conditions regarding the approval of an assignee) * It introduced Authorised Guarantee Agreements (AGA’s) - most recent assignor only has to guarantee lease obligations of immediate assignee

Answer 119

• A Section 17 Notice must be served upon a guarantor within 6 months of the tenant defaulting to require the former tenant who has entered an AGA to pay the arrears.

Answer 120

o Upon assignment, the new tenant (T2) has a direct relationship (privity of contract) with the landlord o When sub-letting, the new sub-tenant (T2) has a direct relationship with the tenant (T1) and pays them the rent, who then pays the landlord.

Answer 121

* Assignor: the entity that transfers their rights to another party * Assignee: receiver of assignment

Answer 122

o Rarely capped (the assignor will pay for all losses the landlord suffers) o Landlord cannot refuse consent to an assignment unless reasonable (reasonable financial standing requirement is deemed enforceable) o This can work against tenant if tenant is say Boots (the better the covenant, the harder it becomes to ‘equal or improve upon’ this position) o ‘Reasonable’ takes into account all pertinent factors, 3x annual rent test is unsatisfactory. Landlord can refuse for instance because poor covenant, poor/undesirable use, negative impact on property

Answer 123

• If consent is to be granted, a licence for assignment or sub-letting will be required.

Answer 124

o Requirement of the lease o For part of the demise and not the whole o If the market rent is higher than the passing rent (face rent) then there is a profit rent o If the tenant wants to re-occupy in the future o The new party is of a lesser covenant strength

Answer 125

o Hard to let properties e.g. in building with no demand

Answer 126

o Overall character of assignee (bad covenant strength)

Answer 127

o Lesser covenant strength o If there is a negative impact on the property o If lease says you cannot sublet at lower rent

Answer 128

o 3x the rent, service charge, rates, insurance (profits test)

Answer 129

• Termination due to a tenant default: nearly all commercial leases provide the landlord ability to forfeit if the tenant becomes insolvent/bankrupt/not paid rent for 14-21 days.

Answer 130

* A forfeiture clause allows the landlord to re-enter the property and gain possession for a breach of the lease (by peaceful re-entry or begin court action), but procedures must be followed and relief offered to the tenant. * Rent must have been properly demanded - If rent has been accepted this could acknowledge the continuance of the tenancy. A demand for rent, or acceptance or rent after the breach with the knowledge that the breach has occurred, is the most patent form of waiver.

Answer 131

• The lease is forfeited by the landlord re-entering the property, whether by physical peaceful re-entry or by commencing county Court proceedings to recover possession. The tenant does not have to be warned that the lease is to be forfeited. The lease is then terminated immediately.

Answer 132

• Special procedures apply for a tenant in administration or receivership

Answer 133

• The tenant has the right of relief (getting occupancy back subject to making good any lease breaches) from forfeiture from the court within 6 months. The court generally requires a severe breach and may not grant relief if the tenant cannot demonstrate ability to make future payments. o If forfeited for non-payment of rent the Court will demand that you clear the account before considering relief.

Answer 134

• Most leases do have a separate re-entry clause if the rent is unpaid after a certain time period (generally 14-21 days I think) so that formal forfeiture clause does not have to be used.

Answer 135

• The landlord is required to service a Section 146 Notice of the Law of Property act 1925.

Answer 136

* Gives tenant right to terminate the lease, given the landlord has sufficient notice and the prescribed terms are met. * Always time of the essence when time limit stated (whether or not expressly states ‘time is of the essence’) (United Scientific -v- Burnley Corporation [1978] AC904).

Answer 137

• Case law tends to favour the landlord, and there is no direct legislation for break clauses (as it is effectively a contractual agreement (like a licence))

Answer 138

o Mutual or single party break? o Required notice period? o Rental penalty? o Personal to the original tenant? i.e. generally the beneficiary cannot be an assignee. o Pre-conditions for the option? Typically include:  Compliance with the tenant’s covenants  Payment of all rent and other sums due  Vacant possession  Returning the premises in good order. o Are the conditions written:  ‘strict’: however trivial, full compliance necessary (Mannai Investment Co Ltd v Eagle Star Life Assurance Co Ltd)  ‘modified’: inclusion of terms like reasonable, material and substantial

Answer 139

o If you want to proceed, you must:  confirm all conditions are met at the break date (landlord is not obligated to respond/acknowledge)  serve a notice to the last-known place of abode in UK, ideally using recorded delivery and keeping proof of postage (S196 Law of Property Act 1925)

Answer 140

Generally with a third party (concession in Fenwicks)

Answer 141

* You charge a lease to the lender (AKA a debenture of security): banks sometimes require a floating charge over all company assets/fixed charge over the property as a condition of a financing facility, most often for restaurant leases as long lease carries substantial capital value. * Charging is typically not drafted into lease, although it is advisable as tenants often later require this ability.

Answer 142

● Landlords right to take back the premises in the event that the tenant proposes to assign or sublet. ● Most common in shopping centres/similar as landlord wants to retain control of the tenants / brands/mix of uses ● Once the tenant has found a potential assignee, he must offer premises to landlord by serving notice. This gives the landlord the time to also decide whether he instead wants to take back the premises (to maintain control over the incoming tenant) ● Generally only conditional on payment of rent, as otherwise tenant would have to strip back to shell and core, which is costly

Answer 143

• Rent paid quarterly in advance on usual quarter days: 25th March, 24th June, 29th September and 25th December with the demand sent out in advance.

Answer 144

o Liability cannot arise in the absence of repair o Repair is distinct from renewal – a tenant cannot be expected to hand back wholly different premises. o Tenants may be responsible for inherent defects. o Repair is not an improvement (P.Roberts, EG 2007)

Answer 145

o An effective FRI lease is when the landlord is responsible for repairs & recharges via the service charge.

Answer 146

For business premises, if there are no EXPRESS covenants the Tenant is required to use the premises in a ‘tenant like manner’

Answer 147

o An express covenant is where there is a specific ‘order’ i.e to:  KEEP in repair – Tenant will commit a breach if the premises fall out of repair at ANY time  LEAVE in repair – found in shorter leases  PUT in repair – tends to be when the property is in a serious state of disrepair  FAIR WEAR AND TEAR – a repairing covenant can be limited by the exception of dilaps caused by ‘fair, wear and tear

Answer 148

o T covenanting to repair a property is under no obligation to hand back something substantially different to that demised  T covenanted to repair, renew, uphold etc  defective stone cladding due to thermal expansion  T claimed inherent defect  Cost of works £55,000

Answer 149

1. ) Serve a repair notice 2. ) Forfeit lease 3. ) Serve an interim schedule of dilapidations 4. ) Do the works and charge the tenant

Answer 150

* Serve a S146 notice for forfeiture and claim damages. * If the lease states then go in and repair yourself. * Finally a Court order.

Answer 151

- These limit the tenant’s repairing obligation in respect of agreed items of disrepair for the duration of the lease, often used for new lettings where landlord not prepared to undertake repairs. - It is agreed by negotiation between the landlord and the tenant prior to the commencement of the lease and attached to the lease. - Reinstatement at the end of the lease by the tenant will be limited by the terms of the schedule. - Must be carefully recorded – often with a supporting photographic record and plans.

Answer 152

o Tenant shall not make any alterations, additions or improvements to the demised premises WITHOUT the prior written consent of the Landlord o It is generally accepted that this consent shall not be unreasonably withheld or delayed

Answer 153

* Alterations are carried out by a tenant during the lease and must usually be approved in writing by the landlord prior to undertaking the works. * Alterations are usually subject to reinstatement at the end of the lease.

Answer 154

o Basic position: nothing stated, all alterations permitted, save for ‘committing waste’ (alterations that damage/reduce property value) o Most common position: permission for internal and non-structural works only, with additional specific permissions for shopfront, fascia etc for retailers o ‘Subject to landlords consent’: reasonable clause important, if not mentioned then landlord has complete rights of enforcement. o Sometimes works such as demountable partitioning or other non-structural works do not require landlord’s formal consent.

Answer 155

* To be completed before the works commence * Obtain an undertaking for costs at the commencement of the instruction * A licence for alterations has 2 useful functions – to protect the parties at rent review and dilapidations at the end of the lease. * Most licences require the tenant to reinstate the works at the end of the lease.

Answer 156

• Relate to the planning use of the property and/or how the property can be used. Two types of clauses – refer to planning use and specific uses.

Answer 157

• Change of use usually subject to landlord’s consent not to be unreasonably withheld.

Answer 158

• A restrictive user clause can depress the market rent – e.g. a restriction on the hours of working for an office building.

Answer 159

The lease had no provision for excluding Tenant’s improvements, therefore they were taken into account at rent review. i.e. this isn't implied, improvements will be taken into account if you have not included this disregard.

Answer 160

1. Name of landlord and tenant 2. Property Address 3. Lease date and rent review 4. Confirmation of new rent agreed Must be signed and dated by both parties. Can also be recorded by: - I.E. determination - Arb award - Written acceptance of a Calderbank offer - An open letter (not marked 'subject to contract')

Answer 161

* The Property Comprised (s.32) * The Length of the Tenancy (s.33) * The Rent (s.34) * ? (s.35)

Answer 162

The Property Comprised (s.32) – usually the same as the old tenancy o However, if the Landlord has objected to a new tenancy on the ground that he wishes to substantially reconstruct, the Court may:  If Tenant agreed, and, Landlord is able to carry out his scheme,  Order a tenancy of part of the property: S31A(1)(b)

Answer 163

• The Length of the Tenancy (s.33) – not exceeding 15 years (1st June 2004)

Answer 164

The Rent (s.34) - The rent the property might reasonably be expected to let at in the open market by a willing lessor (THE MARKET RENT), disregarding: o (i) Ts previous occupation. o (ii) any goodwill. o (iii) Landlord’s approved improvement carried out by the tenant within the last 21 years. o (iv) any licence to sell intoxicating liquor if the licence belongs to T

Answer 165

• Improvements are to be disregarded if they were carried out by T other than as a lease obligation, and, o (i) during the old tenancy, or, o (ii) less than 21 years before the application for the new tenancy was made

Answer 166

• The Court must have regard to the terms of the old tenancy o and all relevant circumstances • L may be able to change the terms of the old tenancy o if the relevant circumstances are that different terms are being agreed in the open market

Answer 167

o Why use a Part 36?  They are more tempting for the other side if genuine offer to settle AND pay their costs. o Why use a Calderbank?  Provides flexibility and proves that this is probably the best offer the other side will make as it is a genuine offer and costs could be ‘at risk’ if proven ‘wrong’. Not governed by strict court rules.

Answer 168

FRI: Tenant responsible for repairs and insurance EFRI: tenant pays for all repairs/(insurance?), landlord is responsible for dealing with all repairs IRI: tenant responsible for all internal repairs and insurance IR: tenant responsible for internal repairs only

Answer 169

Repairs at 15% (dependent on building characteristics) | Insurance at 2.5% (don't expect it will change much)

Answer 170

Repairs at 15% (dependent on building characteristics) Insurance at 2.5% (don't expect it will change much) Management fee at 7.5% if easy to manage up to 10% of gross rent (which includes repairs and insurance)

Answer 171

• Used for payment plans, deed of variation/rectification

Answer 172

Changes the terms of the lease

Answer 173

Changes something which is wrong

Answer 174

A deed that can add new conditions for original lease.

Answer 175

* These are charges to tenants of multi-tenanted properties or estates of costs incurred by a landlord to maintain and manage a property * No specific legislation covers commercial service charges – only for residential service charges

Answer 176

• Many prospective tenants are now trying to negotiate service charge caps, fixed increases or link increases to the Retail Price Index or Consumer Price Index to limit their future liability

Answer 177

o A service charge budget should be agreed with the tenant prior to the commencement of the year. Quarterly billings are then based on this estimate. o Annual accounts are prepared at the year end o Balancing payment made at the end of the year upon the presentation of audited accounts o Use of a sweeping up clause for unexpected costs. o Payments usually reserved as rent in the lease

Answer 178

 Floor area  Fixed percentages  Rateable value – difficult if RVs change or are appealed  Weighted floor area – such as for a department store in a shopping centre

Answer 179

o To protect the value of the investment – i.e. to balance the tenant mix.

Answer 180

o If it will affect the landlords value on reversion o If it will affect businesses in the area o If there is a total prohibition on change of use in the lease.

Answer 181

o Must look at the unexpired lease term, you may need consent so check the lease and also check rent review clause to see if improvements are disregarded. o Short lease? Then no, not a good idea (reinstatement at lease end, both in lease and generally agreed for a licence to be permitted)

Answer 182

 Landlord can offer to do the works himself and subsequently get an increase in the rent.  Or  Landlord can give Tenant consent to do the works.

Answer 183

 The lesser of • The addition in value from improvement • The cost of doing the improvement at the end of the lease

Answer 184

i) T must serve a notice on the L with details of the works, plans etc ii) L has 3 months to object or do the works themselves in return for a reasonable increase in rent iii) If the L does not object or does not carry out the works then the work must be completed in an agreed timeframe If the L objects then it can go to Court and the Court will determine if the improvements will add to the letting value of the property at the time of the lease, they are reasonable and they won’t diminish the L’s reversion If an improvement is registered in accordance with the 1927 Act then the compensation is based on the increase in value.

Answer 185

 Do the works themselves and offset against rent (go to Court to get amount reduced from injunction rent to cover the repair) - if T carries out works without giving L notice that it is his responsibility then T cannot reclaim costs.  Issue claim for damages (difference in value to a Tenant between the premises in their condition at the time of the assessment and their value if the Landlord had fulfilled repairing obligations)  Get an injunction (specific performance) to force landlord to do the works.

Answer 186

o A format of schedule of dilapidations recommended by RICS. You would need this format if you went to Court.

Answer 187

o Outline repairing obligations o State the remedy and cost of the breach o Loss of rent, if appropriate, over period to do to works o Fees + VAT for the claim for surveyors and lawyers o Negotiations conducted on a without prejudice basis until agreement reached o If agreement not reached, landlord’s surveyor may be required to prepare a Scott Schedule for the Court/ADR setting out a summary of the landlord’s and tenant’s position

Answer 188

o Interim Schedule – served by the landlord or the tenant during the lease, with at least 3 years remaining o Terminal Schedule – – served IN the last 3 years of the term. Can be served at termination or AFTER termination subject to Limitation Act (within 56 days). You do not need to accompany this with a Section 146 Notice but should be accompanied by a claim for damages (diminution in value) o Final Schedule – served at or after the lease expiry/ break clause date when the tenant is out of occupation and the landlord wants to agree a claim for damages.

Answer 189

o Diminution in value following tenants breach of the Landlords interest which is usually the cost of the work.

Answer 190

Difference in value to tenant in repair or out of repair.

Answer 191

o Purpose: dilapidations are not intended to profit the landlord, but simply to return them to the same position as if the Tenant had performed their lease obligations. o If a landlord makes a significant claim but then invests little to remediate the damages, it suggests to the Courts his conviction isn’t genuine. o But if the landlord has a poor judgement on what is reasonable then he could easily remediate ‘too much’ and actually lose money. o The Court will take into account property value loss when awarding claims (i.e. a breach may have occurred, but if the property cannot be proven to have a lower value because of it, the Court may completely/partially ignore the breach)

Answer 192

• Claim is the lesser of either o The reasonable cost of carrying out the works o or, o CAPPED in accordance with Section 18 - Landlord and Tenant Act 1927 to:  Diminution in value to the Landlords reversion (i.e. if claim made after lease end it can also include void costs etc. landlord has) caused by the Tenant’s breaches (breaches being key here, depends what lease says, what can be confirmed and quantified, i.e. covenants to repair and decorate).  If a landlord proposes to demolish or substantially refurbish, the value of the reversion could be nil

Answer 193

* Section 146 notice must be served in accordance with the 1925 Law of Property Act * You shouldn’t give the tenant a S146 notice at Terminal Schedule time as the tenant cannot forfeit a lease that is about to terminate naturally. * Most schedules are served on a draft basis informally first

Answer 194

• Two choices before the lease expiry date: o Tenant can do the agreed works, or o Tenant can pay a sum to the landlord to undertake the works (Breach + Loss + Evidence = Recovery)

Answer 195

• These negotiations take place at the lease expiry to bring the property back to its condition at the start of the lease assuming there is a repairing liability. • Check the lease terms to understand the o repairing responsibilities of both parties o whether there is a schedule of condition o whether any licences for alterations have been granted

Answer 196

* The leading case is Jervis v Harris (1996) in respect of the landlord’s right to re-enter the property to undertake the repairs, and then claim to recover the cost of doing so from the tenant as a debt, in the event of the tenant not complying with the repairing covenant of their lease. The clause requiring the tenant to reimburse the landlord for the cost of undertaking repairs was a debt and not damages. It not a claim for compensation for the breach of the tenant’s covenant to repair, but reimbursement of the sum spent by the landlord. * This case gives the landlord a right to pursue an effective remedy against defaulting tenants to ensure that the premises are kept in good repair for the duration of the term of the lease.

Answer 197

 When the tenant is solvent  Where the landlord wants the lease, and rent to continue  The landlord wants to retain control to carry out repair works  Where the threat of entry may compel the tenant to do the work

Answer 198

 Tenants with leases of 7+ years and 3 years unexpired have 28 days to serve counter notice to S146.

Answer 199

o Instruct a building surveyor to prepare a draft or formal schedule to serve upon the tenant. ``` Leasehold Property (Repairs) Act 1938 o T may apply for relief under Leasehold Property Repairs Act 1938 Section 1 ```  applies to leases for more than seven years where three years or more is left to run o Aims to protect tenants against onerous interim schedules of dilapidations. Act requires landlords to serve a section 146 notice on tenant.

Answer 200

 L serves Section 146 Notice  T serves counter-notice within 28 days  no action unless Court gives leave  L must establish one of the five grounds specified in Section 1(5)

Answer 201

 L must establish one of the five grounds specified in Section 1(5) (LPRA 1938) * i) the value of the reversion has been substantially diminished * ii) repair is necessary to comply with any Act * iii) repair is necessary to protect another occupier * iv) the cost of immediate repair would be small compared to the cost of future repair * v) special circumstances render it just and equitable to grant leave

Answer 202

 Peaceable re-entry – notice on the door and change the locks. You cannot do this when they are in the property.  Court proceedings – apply for right to forfeit (you cannot have acknowledged their tenancy)

Answer 203

(must be a forfeiture clause in lease) o A landlord wishing to forfeit the lease for disrepair will have to serve a Section 146 notice on the tenant. This should state why the tenant is in breach of the repair covenant and outline what must be done to remedy the breach. The tenant must then be given a reasonable time to undertake the works.

Answer 204

o A Notice to Repair, served under section 146 of the Law of Property Act 1925 may be served by the landlord during the lease, subject to terms of the repair works required of the lease. Such notices are usually served to remedy one specific repairing or decorating breach. The notice must be in writing and comply with the terms of the lease. The notice sets out the following information:  Details of the repairing or decorating breach which has occurred  The timescale allowed to remedy the breach  A course of action proposed if the tenant fails to remedy the breach o L’s solicitor would usually serve the Section 146 notice, its form is of paramount importance

Answer 205

Parties and date, definitions, rent, demise, landlords covenants, tenants covenants, if outside act stated at end of lease and RR as schedule.

Answer 206

6 key differences- PAICED. Powers (lease or arb act), appeal (arb on 3 grounds), indemnity (can’t sue arb), costs (arb can award s63), evidence (exp own ev), disclosure (arb s34)

Answer 207

Review lease, ensure calderbanked so costs recoverable, filled out DRS1 form and emailed RICS dispute resolution service.

Answer 208

Tenants alterations can be valued after 2nd lease renewal provided that they have been in place for 21 year rule.

Answer 209

It depends upon the wording of the lease (having regards to the original tenancy). Is there a restriction on use? Could a suitable retailer use the space effectively and to their benefit? Would add a percentage for the return frontage of the valuations frontage zones.

Answer 210

Yes, the landlord wishes to occupy himself or redevelop the property.

Answer 211

If it were outside the act, the term would be only secure for that term and the valuer could not assume it would roll on after lease expiry.

Answer 212

Lease assignment is a contractual formal arrangement to transfer the lease. A subletting is a more flexible arrangement. A Landlord would prefer a subletting as have two tenants to approach for failure to pay rent.

Answer 213

Forfeiture or S30 of the L&T Act 1954

Answer 214

Where the tenant is part of a larger group and the landlord sees more security with a guarantee from the superior tenant.

Answer 215

The Civil court for less than £50,000 damages.

Answer 216

- S82 Coronavirus Act 2020 prevents non-payment of rent forfeiture proceedings including CRAR until 30 June 2021 for almost all commercial leases (including contracted out leases) – all other grounds remain the same. - Sums remain due (including accrued interest) and only an express waiver will waive the right to forfeit when the restricted period ends – therefore advise landlords to be careful to not waive right by for instance accepting rental payment. - You may be able to recover rents etc from previous tenants (depending on if. pre-1996 lease) or guarantors etc.

Landlord and Tenant Flashcards

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