Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

APC Interview > Landlord & Tenant > Flashcards

Landlord & Tenant Flashcards

(88 cards)

Start Studying
1
Q

What are some of the matters you have dealt with in relation to landlord and tenant law?

A

Lease renewals & rent reviews

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is your understanding of rent review negotiations?

A

I understand that rent reviews are governed strictly by the lease.
Can be OMV or RPI or higher of.
Usually upwards only.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How important is the Landlord and Tenant Act (1954) in the lease renewal process?

A

Extremely important - Part 2 of the 1954 Act governs the whole process.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Can you expand on the role of Section 30 of the Landlord and Tenant Act (1954) in lease renewals?

A

Section 30 refers to the basis in which a LL can oppose a new tenancy.
A - Breach of repairing covenant.
B - Consistent non-payment of rent.
C - Other substantial breach.
D - Provide suitable accommodation
E - Uneconomic subdivision
F - Redevelopment
G - Owner occupation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Which of s30 options are eligible for compensation?

A

E-G
Occupation less than 14 years - 1 x rateable value
Over 14 years - 2 x rateable value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Can you describe the procedure for a rent review?

A

Receive instruction, check competent, check for conflicts and confirm fee.
Request legal pack
Read lease - time of the essence? RR clause, assumptions & disregards
Undertake inspection & measurement
Comparables
Written recommendations
Serve notice on tenant
Negotiate
Agreement RR memo.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What assumptions and disregards must be acknowledged during a rent review?

A

Check the lease but usually:

Assumptions - vacant possession, fit and ready for occupation, available to let between willing LL & T, tenant has fulfilled lease obligations.

Disregards - goodwill, adverse effect on value from neighbouring temp works/operations, tenant fitout that has been documented.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How do you understand the different methods of dispute resolution in landlord and tenant matters?

A

Usually stated in the lease - Independent Expert or Arbitrator.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the responsibilities of an independent expert in L&T disputes?

A

Undertake their own investigation and use their knowledge and experience to reach a decision.

They then reach a determination which binds the parties.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Can you elaborate on the differences between an independent expert and an arbitrator?

A

A - governed by Arbitration Act 1996, IE - governed by the lease
A - use each party’s proposal, IE - own knowledge/experience
A - award between the offers, IE - determination based on opinion
A - limited right of appeal, IE - no right of appeal
A - can’t be sued for negligence, IE - can be sued

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

In your experience, what are some of the challenges you encountered in RR/lease renewals and how did you overcome them?

A

Agreeing rents / certain terms - negotiate
Understand client’s musts and nice to haves.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What specific strategies did you use in negotiating the lease renewal on behalf of your client?

A

Ensure to maintain a collaborative approach as the longevity of the LL & T relationship is important.

Ensure I understand their objectives - musts & nice to haves.

Undertake market research to ensure I have a strong opening position.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What were the implications of the tenancy being agreed outside of the Landlord and Tenant Act 1954?

A

The tenant does not have security of tenure / the automatic right to renew the lease.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is S24 of LTA 1954?

A

Tenants right to hold over.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is S25 of LTA 1954?

A

Termination of current lease by LL.
Hostile - no renewal (s30)
Non-hostile - renewal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is S26 of LTA 1954?

A

Tenant’s request to renew lease.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is S27 of LTA 1954?

A

Tenant’s notice to quit - at least 3 months before.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is S28 of LTA 1954?

A

Agreement of new tenancy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is S29 of LTA 1954?

A

Timescales for application to court
e.g. tenant’s application after receiving s25 notice.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Can you describe the process for finalising the Heads of Terms for the lease renewal?

A

Draft HOTs as per agreed terms.
Send to other party for review.
Confirm contact details for tenant and their solicitor.
Once finalised, send to solicitors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How did you determine the rent review mechanism for the industrial unit in Driffield?

A

Checked the rent review section in the lease.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What was the significance of the rent review being upwards only and linked to the uncapped Retail Price Index (RPI)?

A

The increase in rent is only down to RPI and not reflective of market movements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What methods did you use to research the base and index RPI figures?

A

ONS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

How did you calculate the reviewed rent based on the RPI figures?

A

I sourced RPI figures for October 2020 and October 2023.

Multiplied passing rent but current RPI figure. Then divided by previous RPI figure.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What steps were involved in settling and formally documenting the rent review?
Agreeing final rent and then issue a RR memo.
26
How did you collaborate with your supervisor and the tenant's surveyor during the rent review process?
I collated the inputs and undertook the calculations which were reviewed by my supervisor. I then contacted the tenant's surveyor, cc'ing my supervisor in, to agree the increase.
27
What steps were taken to confirm the tenancy was inside the Landlord and Tenant Act 1954?
Checked the lease.
28
What information did the section 25 non-hostile notice contain?
Landlord & Tenant Details Premise Notice of renewal - to oppose or not Proposal - new rent, term, any changes to existing lease. Date of new tenancy Statement on Tenant's right to respond Signature.
29
What factors did you consider when analysing the data on rental market evidence?
Condition Spec Location Size Incentives RR mechanism
30
How did you create an accurate report of your findings to the client?
Verified information with agents and lease.
31
What negotiation tactics were used to reach an agreement on the Market Rent?
Collaborative but also went in slightly higher than Client's goal.
32
Can you explain the functions of the green clause in the lease terms?
Purpose of green clauses are to promote sustainability. Includes not undertaking works that would negatively impact EPC. Providing energy data for annual GRESB collection. Obtain a renewable energy contract. Nothing financially onerous on the tenant.
33
What steps did you undertake to ensure competence in proceeding with the rent review in Rugby?
I considered previous tasks I had completed and whether this was similar. Discussed with line manager.
34
What assumptions and disregards were detailed in the lease for the rent review?
Assumptions: - Fit and ready for occupation. - Available to let by a willing LL to a willing T. - Vacant possession - Tenant obligations fulfilled. - RF OM benefits. Disregards: - Goodwill - Tenant fit out (if documented) - Adverse effect on RV due to neighbouring temp works/ops.
35
What safety measures were taken during the inspection of the property, in reference to RICS Guide to Surveying Safely Guidance?
Risk assessment - hazards, risk level PPE Lone working - informed team of whereabouts Communication
36
What does the RICS LTA Guidance Note 2013 mention?
Importance of dealing with matters without delay. Ensuring that a License is completed to protect both parties. License must clearly document works agreed.
37
What is Privity of Contract?
Pre 1995 leases, all tenants were responsible for the obligations under the lease, even if they had assigned/sublet. LTCA 1995 removed POC.
38
What is an Authorised Guarantee Agreement?
LL can guarantee assignee with assignor. Assignor is released at lease expiry / subsequent assignment.
39
When can a LL refuse assignment?
Usually when covenant is weaker or assignee doesn't pass profits test. LTCA Act 1995.
40
How can a LL forfeit lease?
Serve a notice under s146 of Law of Property Act 1925 - specifying breach.
41
When was the Landlord and Tenant Act 1954 last amended?
2004 - Regulation Reform (Business Tenancies) (England & Wales) Order 2003)
42
What tenancies does the 1954 Act apply?
Business
43
Explain when tenant’s improvements are disregarded at lease renewal.
When a LTA has been completed.
44
Explain what action a tenant should take if there are 6 months of the lease remaining and he/she wants to vacate at expiry. The landlord has not served a Section 25 Notice
Serve a s27 notice at least 3 months prior to lease expiry.
45
What are the key elements of a rent review clause?
Assumptions, Disregards, Mechanism, Hypothetical Term.
46
What is a “trigger notice”?
Initiate lease renewal discussions - s25, s26.
47
What do you understand by the expression “time of the essence”?
If time is of the essence, an obligation must be complete on time. Generally accepted time is not of the essence unless specifically stated.
48
Which case is related to time of the essence?
United Scientific Holdings Ltd v Burnley Borough Council
49
Name a case law about defining a lease
Street v Mountford - the rights created not just the name of the agreement.
50
What is a Calderbank Letter?
Unequivocable offer to settle and is marked ‘Subject to Contract save as to Costs’. Can only be served when an Arbitrator has been appointed.
51
What must a Calderbank Letter include to be effective?
Unconditional written offer to settle the rent review 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). States that it is open for acceptance for 21 days
52
What constitutes a lease?
Exclusive possession Specified term Payment of rent If more than 3 years - must be in writing & executed as a deed.
53
Case law on lease renewal?
Omay vs City of London - can't unreasonably change lease terms during a renewal process.
54
Case law on 'time of the essence'?
United Scientific Holdings vs Burnley Borough Council - time limits will be strictly applied in a rent review clause if this is what the lease states.
55
What is the implication of a tenant 'holding over'?
They can leave with 3 months notice - LL has no security of long term income.
56
What is the outcome called for Arbitrator and Independent Expert?
Arbitrator - reward IE - determination
57
Can both an Arbitrator and IE award costs?
Arbitrator - yes IE - depends on the lease
58
What is included in a rent deposit deed?
Parties, deposit amount, purpose, holding, LL right to withdraw, tenant obligation, deposit return, interest, VAT.
59
Steps for a tenant to exercise their break option?
Tenant has to be up to date on rent Not in breach of their lease Must be up to date on repair covenant Must provide correct notice
60
What is the structure of a lease?
Parties involved Description Lease Term Rent Responsibilities and obligations Remedies for breach Other clauses Schedules
61
Case law for section 30?
S Frances v Cavendish Hotel London - acid test - would LL develop if T left voluntarily?
62
What Sections of 1954 Act relate to the new terms of the tenancy?
S32-35
63
What is the difference between a lease and license?
Main difference - licence does not grant exclusive possession but simply a right to occupy (for a specific purpose).
64
What is the benefit of a licence?
Flexibility and simplicity
65
What is a tenancy at will?
Landlord and tenant agree that a tenant may occupy a property. No legal interest is created. Can be terminated at any time by either party.
66
When would a tenancy at will usually occur?
When a tenant needs immediate access but negotiations for a lease are still ongoing.
67
Notice period for tenant serving s27 to terminate lease?
3 months minimum.
68
What notice must a landlord serve under s38 1954 Act (contracting out)?
Regulatory Reform (Business Tenancies) (England and Wales) Order 2003
69
What info is required prior to a L&T instruciton?
TofE Client's objectives and strategy Lease docs - lease, licences, DofV, RR memos Tenant details Solicitor details Prop Man file Current comps held by client
70
Implication of time of the essence?
LL could miss an opportunity to capture rental growth if deadline not met.
71
What is a wayleave?
Temporary right with an annual payment - e.g. right for an electricity company to install their apparatus. Cannot be transferred to a new owner. Not compulsory registerable.
72
What is an easement?
Permanent right Receive capital payment Can be registered with LR. Right enjoyed by one party over the land of another.
73
What is a prescriptive easement right?
Easement granted after proving continuous/uninterrupted use for at least 20 years.
74
What is a permissive easement right?
Granted by landowner to allow access over land - not public rights of way. Usually signage in place.
75
What is adverse possession?
Process by which a person who is not the legal owner can become the legal owner through possession over a specified period of time. Up to 12 years (before 2003) 10 years (post 2003) Land not registered - 12 years still applicable.
76
Common RR mechanisms?
OMV RPI/CPI Stepped rents Turnover rents - usually retail & leisure
77
What is a deeming provision?
Old lease - LL to specify new rent in a trigger notice. If tenant had not served counter-notice by deadline, they are deemed to accept the rent.
78
Hierarchy of Evidence?
Weighting attached to comps OMV LR RR IED Arb Court Hearsay S&L S&R
79
WP Save as to Costs
Protection against high DR costs Focus attention on reaching an agreement
80
Conditions of appealing Arbitrators award?
Within 28 days to High Court, only if: - Challenge to the tribunal's jurisdiction - Point of Law - Serious irregularity
81
Contents of a RR memo?
Name of LL & T Address Date of lease & RR Confirmation of rent agreed Signed by both parties
82
What is S24A of 1954 Act?
Interim rent
83
What is included in a S25 notice?
Name and address of LL & T Address of property Notice of the date to end tenancy Confirmation of whether new lease is opposed or granted Date by which tenant can ask the court for a new tenancy LL's proposal or grounds for opposition Strong recommendation to seek pro advice.
84
What is the timeframe for a LL serving a counter notice to a S26?
2 months
85
When MUST a S27 be served?
If tenant is holding over and wishes to vacate - 3 months notice.
86
How long must a LL have owned building before they can oppose on owner-occupation grounds?
5 years
87
What is the max term the Court can grant (Regulatory Reform (Business Tenancies) (England & Wales) Order 2003?
15 years
88
What did O'May v City of London Real Property Co establish?
Departure of current lease terms to be fair and reasonable.

APC Interview (19 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions