Landlord and Tenant Act

Question 1

What is Ground A for landlord termination?

Answer 1

Persistent breach of the tenant’s repairing covenant.

Under section 30 of the Landlord and Tenant Act 1954, there are seven grounds of opposition that can be put forward by a landlord – in a hostile section 25 notice, or a counter notice to a tenant’s section 26 notice – to oppose a new tenancy. The first of these is ground A, a persistent breach of the tenant’s repairing covenant. This is therefore known as a fault ground. The breach needs to be serious and ongoing throughout the existing lease term. If a landlord is successful in proving this ground, then they are not obliged to pay the tenant any compensation for disturbance.

At fault

Question 2

What type of fault is Ground A (persistent breach of repair)?

Answer 2

At fault

Question 3

What is Ground B for landlord termination?

Answer 3

Persistent delay in the tenant paying rent.

Another fault ground, this relates to a persistent delay in the tenant paying rent. ‘Persistent’ here refers to falling into arrears on several occasions, so it must be more than just a one-off late or non-payment.

At fault

Question 4

What type of fault is Ground B (persistent rent delay)?

Answer 4

At fault

Question 5

What is Ground C for landlord termination?

Answer 5

Use or management of the property is improper.

This is another fault ground, and relates to another substantial breach of covenant by the tenant, generally concerning their use or management of the property, or another breach of their lease. It will, however, exclude minor breaches, e.g. a minor breach of use which has been rectified. The court will also consider the action taken by the landlord in relation to the breach or breaches in question.

At fault

Question 6

What type of fault is Ground C (use/management)?

Answer 6

At fault

Question 7

What is Ground D for landlord termination?

Answer 7

Provision of suitable alternative accommodation by the landlord.

This relates to the provision of suitable alternative accommodation by the landlord. They must make an offer as early as possible, ideally before or at the time they serve the hostile section 25 notice. The offer of alternative accommodation should be reasonable in terms of the current lease and tenant’s circumstances; that is, it should be suitable, preserve goodwill, and be available at the end of the current tenancy. The landlord does not have to compensate the tenant for disturbance if suitable alternative accommodation is provided, although the tenant is not deemed to be ‘at fault’.

No fault

Question 8

What type of fault is Ground D (alternative accommodation)?

Answer 8

No fault

Question 9

What is Ground E for landlord termination?

Answer 9

Uneconomic subdivision due to inherited sub-lettings.

Another no-fault ground, this relates to an uneconomic subdivision where the landlord has inherited sub-lettings created by the tenant, which would prevent the landlord selling or letting the premises as a whole. In reality, this ground is rarely used, and is not available where there is an immediate landlord and tenant relationship, i.e. not a sub-tenant and landlord scenario.

No fault

Question 10

What type of fault is Ground E (uneconomic subdivision)?

Answer 10

No fault

Question 11

What is Ground G for landlord termination?

Answer 11

Landlord requires the property for own occupation and has owned it for at least 5 years.

The final no-fault ground concerns the landlord requiring the property for their own occupation.

They must have a firm and settled intention to occupy the premises for the purpose of their own business or residence and must also be able to prove that they have a reasonable prospect of doing so by the hearing date.

To qualify for this ground, the landlord must be competent, which in this case means having owned the freehold interest in the property for at least five years from the date specified in the section 25 or 26 notice. The word ‘competent’ is defined within the act and has nothing to do with being competent in terms of the APC.

No fault

Question 12

What type of fault is Ground G (own occupation)?

Answer 12

No fault (landlord must have held the property for at least 5 years)

Question 13

What happens to a lease when a tenant is ‘holding over’?

Answer 13

A protective lease will continue to run.

If no notices are served under the 1954 Act by the expiry date stated in the lease, then a protected lease will continue to run and the tenant will hold over, i.e. the lease continues to run.

This means that the lease continues as a periodic tenancy until notice is served by either party.

Question 14

When can either party apply for interim rent?

Answer 14

After a Section 25 or Section 26 notice, and within 6 months of the old lease’s termination.

Question 15

What is required to trigger liability for interim rent?

Answer 15

Serving notice is essential.

Question 16

Why might a tenant avoid serving a Section 26 notice in a rising market?

Answer 16

To avoid triggering liability for interim rent — a potentially prudent strategy.

Question 17

What are the two main types of settlement offers in lease disputes?

Answer 17

Calderbank offer and Part 36 offer.

Question 18

Who should advise on and serve a settlement offer?

Answer 18

A solicitor — always take legal advice and have the solicitor serve the offer.

Question 19

What is a key difference between a Calderbank offer and a Part 36 offer?

Answer 19

A Part 36 offer is costlier and more restrictive in terms.

Question 20

What are the two core activities for Commercial Real Estate candidates?

Answer 20

Lease renewals and rent reviews.

Question 21

Which legislation is essential for understanding lease renewals?

Answer 21

The Landlord and Tenant Act 1954.

Question 22

Why is the Landlord and Tenant Act 1954 important for Commercial Real Estate professionals?

Answer 22

It provides the legal framework for lease renewals and tenant protection.

Question 23

What is Ground F for landlord termination ?

Answer 23

A third no-fault ground applies in circumstances where the landlord wishes to demolish, reconstruct or redevelop a property.

They must be able to evidence a firm and genuine intention at the hearing date that they could not undertake the work without securing physical and legal possession of their property.

There is a significant amount of case law relating to this ground, of which candidates should be aware. A good example is S Franses Ltd v The Cavendish Hotel (London) Ltd [2018] UKSC 62 and Betty’s Cafes Ltd v Phillips Furnishing Stores Ltd (No.1) [1959] A.C. 20.

Question 24

What is interim rent ?

Answer 24

In basic terms, this is the amount of rent paid between the old lease expiring and the new one commencing.

An interim rent application can be served by either party after a section 25 or 26 notice, and within six months of termination of the old tenancy; however, it is payable from the earliest possible date stated in the section 25 or 26 notice.

Thus, serving notice is essential to trigger liability to an interim rent.

Alternatively, by not serving a section 26 notice, a prudent tenant will not trigger this liability – potentially a good strategy in a rising market.

Question 26

Where does the Landlord and Tenant Act 1954 apply?

Answer 26

Only in England and Wales.

Question 27

Why is understanding jurisdiction important when applying the 1954 Act?

Answer 27

Because legislation and legal proceedings differ across the UK — the 1954 Act doesn’t apply everywhere.

Question 28

What legislation applies to business tenancies in Northern Ireland?

Answer 28

The Business Tenancies (Northern Ireland) Order 1996.

Question 29

What legal principle governs lease renewals in Scotland?

Answer 29

The principle of tacit relocation.

Question 30

What must Commercial Real Estate candidates be aware of when working across UK jurisdictions?

Answer 30

The specific laws and procedures that apply in the region they’re practicing in.

Question 31

When can parties apply to the county court in a lease renewal dispute?

Answer 31

When the renewal cannot be settled by negotiation.

Question 32

What is the latest time an application can be made to court under the 1954 Act?

Answer 32

By the termination date in the Section 25 or 26 notice, or within any agreed extension of time.

Question 33

How long do parties have to issue a lease renewal claim in court?

Answer 33

Within four months of the notice termination date.

Question 34

Can the lease renewal process be accelerated?

Answer 34

Yes, either party can apply to the court to accelerate the process.

Question 35

What does Section 64 of the Landlord and Tenant Act 1954 say about the start of a new lease after litigation?

Answer 35

The new lease begins three months after the court order (final disposal), unless the court directs otherwise.

Question 36

What does the RICS Code for Leasing Business Premises provide?

Answer 36

Mandatory requirements and best practice guidance for lease renewals and lettings.

Question 37

What is the key mandatory requirement when negotiating a lease renewal under the RICS Code?

Answer 37

Negotiations and heads of terms must be approached constructively and collaboratively.

Question 38

How must heads of terms be recorded, according to the RICS Code?

Answer 38

They must be set out in writing.

Question 39

What else does the RICS Code recommend for lease renewals?

Answer 39

Standard lease terms to be incorporated into the renewal lease.

Question 40

When might informal lease renewal negotiations begin?

Answer 40

Before formal notices are served, to reduce legal costs and preserve relationships.

Question 41

What does the RICS Code say negotiations should aim to achieve?

Answer 41

A fair balance between parties, considering their respective commercial interests.

Question 42

What factors should negotiations take into account?

Answer 42

Existing lease terms and the provisions of the 1954 Act.

Question 43

What are the two types of settlement offers in lease renewals?

Answer 43

Calderbank offers and Part 36 offers.

Question 44

Which settlement offer is more costly and restrictive?

Answer 44

Part 36 offer.

Question 45

Who should serve settlement offers and advise on which to use?

Answer 45

A solicitor.

Question 46

What does PACT stand for?

Answer 46

Professional Arbitration on Court Terms.

Question 47

When should PACT be considered?

Answer 47

Before legal proceedings, as a form of alternative dispute resolution (ADR).

Question 48

Who can act as the third-party decision-maker in PACT?

Answer 48

An arbitrator or an independent expert.

Question 49

How do courts view parties that consider ADR such as PACT?

Answer 49

Favorably.

Question 50

What must a tenancy satisfy to qualify under Section 23 of the 1954 Act?

Answer 50

It must be occupied by the tenant for business purposes.

Question 51

What is a useful acronym for qualifying tenancies?

Answer 51

BOT – Business, Occupation, Tenancy.

Question 52

What types of tenancies do not qualify under the Act?

Answer 52

Licences, tenancies at will, and excluded tenancies.

Question 53

Which section of the Act outlines exclusions from qualification?

Answer 53

Section 43.

Question 54

What are key lease terms a surveyor must understand?

Answer 54

Repair, rent payment, lease term, and break options.

Question 55

Why is using a lease summary template important?

Answer 55

To ensure no key terms are missed.

Question 56

What happens if parties contract out of the 1954 Act?

Answer 56

The tenant loses security of tenure and renewal rights.

Question 57

Why might a landlord want to contract out?

Answer 57

To secure future vacant possession of the property.

Question 58

How might contracting out benefit tenants?

Answer 58

They may negotiate lower rent for short-term occupation.

Question 59

What is required in the standard contracting-out procedure?

Answer 59

A simple declaration by the tenant with a 14-day cooling-off period.

Question 60

What is required in the accelerated procedure?

Answer 60

A statutory declaration sworn before a solicitor within 14 days of lease start.

Question 61

What must be included in the lease itself?

Answer 61

Specific wording confirming the agreement to exclude security of tenure.

Question 62

What is a Section 25 notice?

Answer 62

A landlord's notice to either oppose or offer a new lease.

Question 63

What is a Section 26 notice?

Answer 63

A tenant’s request for a new lease.

Question 64

What is a Section 27 notice?

Answer 64

A tenant’s notice to quit.

Question 65

How much notice must be given under Sections 25 and 26?

Answer 65

Between 6 and 12 months.

Question 66

How much notice is required under Section 27?

Answer 66

At least 3 months.

Question 67

When can a Section 27 notice take effect?

Answer 67

On or after the contractual expiry date of the lease.

Question 68

What does Section 40 allow either party to do?

Answer 68

Request information about the identity of the landlord or tenant.

Question 69

What is a competent landlord as per Section 44?

Answer 69

The person legally capable of granting a new lease.

Question 70

What skill is important at Level 3 of the APC regarding the 1954 Act?

Answer 70

Advising both landlords and tenants with a balanced viewpoint.

Question 71

Why is this important?

Answer 71

To provide comprehensive, objective advice and anticipate the legal implications for either side.

Question 72

What part of a property is a tenant entitled to renew under Section 32?

Answer 72

Only the part they occupy for business purposes.

Question 73

Can the landlord require the lease to apply to the whole premises?

Answer 73

Yes — to prevent tenants from reducing their demise and liability.

Question 74

Why might a tenant want to reduce the space they lease?

Answer 74

To lower costs or give up surplus space.

Question 75

When is compensation for disturbance payable?

Answer 75

When the landlord gains possession on grounds E, F, or G.

Question 76

What is the compensation if the tenant has occupied the premises for under 14 years?

Answer 76

One times the rateable value.

Question 77

What if the tenant has been in occupation for 14 years or more?

Answer 77

Two times the rateable value.

Question 78

What does Section 43ZA state (added 2015)?

Answer 78

Tenants running a business from home do not acquire security of tenure under the 1954 Act.