Landlord & Tenant Flashcards
(4 cards)
Definition of fair wear and tear
Loss, damage or deterioration that naturally and inevitably occurs from reasonable and ordinary use or exposure / aging. Not due to tenants actions or omissions.
Section 1 (4) Notices
In order for a tenancy to be regarded as an FBT, it must:
satisfy the “business condition”; and either
(1) the “notice conditions”; or
(2) the “agriculture condition”.
To satisfy the business condition, at least some of the land must be farmed commercially throughout the term of the FBT.
The notice conditions require the landlord and tenant to exchange Section 1(4) notices stating that the FBT is to be and remain an FBT. If the notice condition is not followed then the agriculture condition must be satisfied.
The agriculture condition requires that the character of the FBT be primarily or wholly agriculture.
What is the risk if the notice or agriculture condition are not met?
One of the primary aims of a landlord will be to avoid the risk of a business tenancy arising under the Landlord and Tenant Act 1954 which could give the tenant security of tenure i.e. the ability to remain in occupation indefinitely.
AHA Rent review formula
The rent at which the holding might reasonably be expected to be let by a prudent and willing landlord to a prudent and willing tenant, taking into account all relevant factors, including the terms of the tenancy (including those relating to rent), the character and situation of the holding (including the locality), the productive capacity of the holding and it’s related earning capacity, and the current levels of rent for Comparable holdings.
