Landlord & Tenant

Question 1

What are the key sections of the Landlord & Tenant 1954 Act

Answer 1

23 - Application of the Act.

24 - Security of tenure provisions and continuation of tenancy.

24a - Interim rent.

25 - Landlords notice to end the lease or seek a new lease.

26 - Tenant’s notice to seek a new lease.

27 - Tenants notice to end the lease.

28 - Renewal of tenancy by agreement.

29 - Order by Court for a new tenancy.

30 - Landlords ground for opposition of a new lease.

32 - 35 Terms of the new lease.

34 - Basis of valuation for the new rent.

37 - Compensation provisions.

38A - Contracting outside the Act.

40 - Notice requesting information about either party.

Question 2

What are the 6 basic elements a business tenancy must include for protection under the act (23)

Answer 2

1. It is a tenancy
2. Occupied / used for a business
3. Occupation of at least part by the tenant
4. 6months+ occupancy
5. Not an exempted or excluded tenancy (TaW)
6. There must be a competent landlord.

Question 3

What is a competent landlord

Answer 3

Defined in section 44 as a person / body upon whom notice should be served or who serve.

Must be a freeholder or superior tenants with unexpired lease term of over 14 moths.

Question 4

Describe section 24

Answer 4

Security of tenure provisions.

A tenancy to which the act applies does not expire by the effluxion of time - but when a notice is served.

When no notice is served this = ‘holding over’ until a notice is served.

Tenant pays interim rent = market rent.

Question 5

Describe section 25 and what the notice must be.

Answer 5

LL notice served on the tenant.

Must:
- Be given by a competent LL to tenant
- Relate to the whole property in tenancy
- State lease termination date
- Be in prescribed form and inform tenant of their rights
- proposed terms of new lease (non-hostile)
- hostile - grounds of opposition to new lease to be stated.

Question 6

What are the contents of a S 25 notice?

Answer 6

Name & address of LL & tenant.
Property address
Notice of termination date
Confirmation a new lease is granted or opposed.
Confirmation of the date of response
LL proposals for a new tenancy
Recommendation to seek professional advice.

Question 7

What is section 26

Answer 7

Tenant can serve notice requesting a new tenancy

Question 8

What are the timelines for a section 25 & 26 notice

Answer 8

No more than 12 months
No less than 6 months from termination date

Question 9

What is section 27

Answer 9

Notice to be served by tenant anytime if they want to vacate.

On 3 months notice.

Question 10

Is there any case law pursuant to s27

Answer 10

Esselte AB vs Pearl Assurance plc 1997.

If a tenant moves out prior to expiry date. No notice needs to be served if the property is vacant.

Question 11

What is s 28

Answer 11

Renewal of tenancy by agreement

Question 12

Can a tenant appeal a section 25

Answer 12

Yes - they can appeal to the court

Question 13

What is section 29

Answer 13

Order by the court to grant a new tenancy.

Question 14

What does section 30 set out?

Answer 14

The seven ground for opposition to grant a new tenancy (a-g)

Question 15

What are the 7 grounds of opposition?

Answer 15

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

Question 16

Which grounds are discretionary and which are mandatory

Answer 16

A-E are discretionary and the court can decide whether it is reasonable.

F&G are mandatory

Question 17

What is required by the LL for ground F

Answer 17

LL must prove firm intention for redevelopment.

This can include funding, planning, substantial work / drawings, necessity for VP to redevelop.

Question 18

What is required by the LL for ground G

Answer 18

LL must have owned the property for 5 years and prove intention to occupy.

Question 19

Is security of tenure protected if it is silent in the lease

Answer 19

Yes - lease must specifically exclude sections 24-28.

Question 20

What do sections 32-35 of the LTA detail

Answer 20

Terms of the new lease

Question 21

What does section 33 detail

Answer 21

Duration of the lease

Question 22

What does section 34 detail

Answer 22

Basis of valuation for the new rent.

Either agreed by LL & tenant or determined by the court AT oml

Question 23

What does section 37 detail?

Answer 23

Compensation provisions.

If LL obtains possession following a successful s25, tenant is due compensation for disturbance if the tenant has not breached the terms.

Question 24

What grounds is compensation payable

Answer 24

E-F - LL led oppositions

Question 25

What is the compensation?

Answer 25

14 years plus occupation = RV x 2

Less than 14 years rateable value.

Question 26

What is rateable value

Answer 26

The value assigned to non-domestic premises by the Valuation Office Agency. It’s based on a property’s annual market rent, size and usage.

Question 27

What are the 4 assumptions for MR

Answer 27

• Regards to terms of new tenancy
• Willing LL & tenant
• Let with vacant possession
• Effect on rent on the operation of the 1955 covenants acts is considered.

Question 28

If rent is settled by the courts what four matters are disregarded

Answer 28

• Effect on rent of the tenants occupation
• goodwill between tenant and premises
• effect on rent by tenant improvement unless 21 year before the date of new tenancy application.
• For licenced premises any effect on rent of additional value because a license belonging to a tenant.

Question 29

What is section 40

Answer 29

Notice to request additional information from either party.

Question 30

What is PACT and when was it launched

Answer 30

Professional Arbitration on Court Terms. 1997

Question 31

What is section 38A

Answer 31

Contracting a lease renewal outside of the act.

Question 32

Why might a LL want to contract a lease outside the act

Answer 32

Re-occupation
Re-development
Low rent
Future flexibility

Question 33

What occurs at the end of the lease when a renewal is outside the act

Answer 33

Tenant must vacate and has no statutory right to remain
No compensation is payable
No rent to be collected until a new lease has been collected. Collection of rent may create a protected tenancy
LL is required to serve notice / health warning on the tenant. That renewal wont be protected.
Tenant must make a declaration of confirmation & acceptance of notice in response.

Question 34

What are the 2 types of declaration in section 38a.

Have you served these before

Answer 34

Simple - when parties have at least 14 days or more prior to committing to the lease

Statutory - when parties have less than 14 days. Stat dec must be made before an independent solicitor.

Yes stat dec was served in case study.