Landlord & Tenant Act Flashcards
(70 cards)
Lease?
A contract between 2 or more parties that creates a legal interest in land and building
For a document to be a lease it must:
Be for a fixed period of time
Grant exclusive occupation
Be at a rent
Lease vs Licence
Lease gives exclusive possession for a term at a rent
Licence gives permission to do something otherwise illegal. Personal arrangements that cannot be assigned
Lease vs Licence Case Law
STREET vs MOUNTFORD
it does not matter what the document what the document calls itself on the front cover. If, in other respects, the document looks like a lease then it probably is.
What does contracted out means?
Excludes the security of tenure provisions of the L&T Act 1954 Part II
“Tenancy at will”
Intended for short term occupation, typically where parties are negotiating for a longer term lease.
-Occupied at the will of the LL
-Short term
-Still allow exclusive possession
-Must be careful not to create a periodic tenancy
Assignement vs Subletting
Assignment: dispose of the whole lease (pre 1996 Privity of contract, original T remains liable)
AGA introduced by L&T Covenants Act 1995
Subletting: subsiding lease create
Both need permission, usually not unreasonably withheld but usually subject to conditions
“Privity of Contract”?
T who is the original T under a commercial lease has always been responsible for the rent and other covenants in the lease throughout the length of the lease, even after he has transferred it to someone else (before 1st Jan 1996)
What legislation ended Privity of contract?
L&T Covenant Act 1995 applied to lease from 1st Jan 1996
If lease is assigned then obligations fall only to the assignee and are not passed to the original T
AGA?
Authorised Guarantee Agreements
Allow LL, in appropriate circumstances, or where expressed by the lease itself, to require the assigning T to act as guarantor for their assignee (form of protection)
ONEROUS CLAUSE for T
What is a hostile notice from a LL?
S.25 notice with grounds in S.30 (A-G)
Break clause and how to account for them in valuation
Use Term and Reversion, increase yield slightly, defer for a void period after a break, can allow for cost
Interim Rent?
Payable after current lease has ended and the T is holding over. LL or T can apply
Effective from when new lease would have been effective as stated in S.25/S.26 notice (6 month after notice has been served)
Set at Market Rent
Which section of L&T Act describes a qualifying tenancy?
S.23
What is a qualifying tenancy under s.23?
Not contracted out
More than 6 months
Not a tenancy at will
Not mining nor agricultural
Not a licence
Business tenancy-used mostly for business
Must be in occupation
Which section describes the procedure to exclude security of tenure?
S.38A
What is contained in S.28A?
1) LL gives warning notice to T that their rights are being waived
2)T must give informal notice if more than n14 days prior to granting lease / formal notice if less than 14 days before granting of lease
3)Lease must endorse contracting out
Security of Tenure?
T has right to remain in demise and right to lease renewal
When may tenancies not be protected by the act?
-Lease is not a business tenancy
-Tenancy at will
-Lease is a service tenancy
-Tenancy terms inferior to 6 months + T not in occupation for 12+ months
-Lease is contracted outside the act
Which dispute resolution would you use for a RR and LR?
RR - Indépendant expert / Arbitrator
LR - Court or PACT
PACT?
Professional Arbitration on Court Terms
Launched by RICS Law Society 1997
ADR for lease renewals “delegated” to an indépendant third party who act as an arbitrator / expert. Parties no longer needs to obtain consent from courts.
Advantages of PACT?
Parties can control the procedure & Timing
Delay in court lists are avoided
Parties can chose their own 3rd party
3rd party is a specialist in their field
Lower overall costs
3rd party can seek legal advise if necessary
What does a T have a right to at renewal?
Same terms as previous lease or market practice to max 15 years
O’May test : some terms unless good reason
S.23?
Business Tenancy