Lease termination

Question 1

When is CRAR available to the landlord?

Answer 1

commercial premises,
min. 7 days’ principal rent is owed and lease has not been forfeited

Question 2

Correct procedure for CRAR

Answer 2

The landlord must serve 7 clear days’ notice of its intention to seize goods. They must then landlord serve a further 7 days’ notice of intention to sell the seized goods.

Question 3

effluxion of time

Answer 3

lease ends at end of contractual term

Question 4

Merger

Answer 4

either the tenant acquires the landlord’s interest or a third party acquires both interests. The freehold and leasehold are merged and come to an end (regardless of whether tenancy is protected).

Question 5

If the landlord consents to an unprotected tenant remaining in occupation, the tenant is not holding over, but would be treated as a

Answer 5

‘tenant at will’

Question 6

If the landlord accepts rent from a tenant at will, the tenancy at will may be converted to a

Answer 6

periodic tenancy

Question 7

notice period to end an annual periodic tenancy

Answer 7

6 months

Question 8

notice period for residential weekly periodic tenancy

Answer 8

4 weeks

Question 9

notice period for non-residential weekly periodic tenancy

Answer 9

1 week

Question 10

A notice to quit must expire on either

Answer 10

the first day or last day of the tenancy period

Question 11

Can the tenant of a protected periodic tenancy serve a s.26 notice?

Answer 11

No

Question 12

An express surrender must be made by

Answer 12

deed

Question 13

reverse premium on surrender

Answer 13

A premium paid by the tenant to give up its interest

Question 14

2 methods of surrender

Answer 14

express surrender by deed or a surrender by operation of law

Question 15

An action for debt is limited to

Answer 15

rent due in 6 years before proceedings

Question 16

Disadvantage to an action for debt

Answer 16

costly and time consuming

Question 17

Who must be appointed to initiate CRAR?

Answer 17

an enforcement agent

Question 18

Specific performance remedy for tenant breaches

Answer 18

Rarely available to a landlord, particularly for breach of repair

Question 19

A landlord’s ability to forfeit only arises if there is an

Answer 19

express provision in the lease enabling it to do so

Question 20

For non-payment of rent, when is the landlord entitled to forfeit?

Answer 20

as soon as the lease allows

Question 21

To forfeit for any breach of the tenant’s obligations other than rent, the landlord must serve a

Answer 21

s.146 notice

Question 22

2 forfeiture methods available to landlord

Answer 22

peaceable re-entry
OR applying to court for an order for forfeiture

Question 23

Impact of a “once and for all breach”

Answer 23

If a breach is a ‘once and for all breach’, once the landlord waives the right of forfeiture, it will never be able to regain it for that breach

Question 24

Examples of a “once and for all breach”

Answer 24

non-payment of rent, an unlawful assignment or underletting, an insolvency event

Question 25

Examples of continuing breaches

Answer 25

failure to keep the premises in repair, breach of the user covenant, failure to comply with an insurance obligation

Question 26

On what basis will the court grant relief from forfeiture to a tenant?

Answer 26

discretionary

Question 27

Aim of relief from forfeiture

Answer 27

to put the parties back into the position in which they would have been BUT FOR the forfeiture

Question 28

Can the landlord forfeit if there is not a tenancy agreement?

Answer 28

No, the landlord cannot forfeit the tenancy if there is no express right of forfeiture

Question 29

Forfeiture for breach of repairing obligation

Answer 29

If the lease is for 7 years+ and there are at least 3 years of the term left to run, the tenant has 28 days to serve a counter-notice

Question 30

Measure of damages for breach of repairing obligation

Answer 30

damages = the loss of value to the landlord’s reversion, not the cost of putting the premises into full repair

Question 31

Benefits of a Jervis v Harris clause

Answer 31

Self-help remedy which gives the landlord the right to enter the property, carry out any repairs and recover the cost of doing so from the tenant

Question 32

How can you avoid needing to serve a s.146 for breach of repairing obligation?

Answer 32

Ensure there is a Jervis v Harris clause in the commercial lease on signing

Question 33

Under Jervis v Harris, what can the landlord charge for the repairs?

Answer 33

The cost of carrying out the repairs is treated as a debt, not damages, so it can be recovered in full

Question 34

When is a s.146 notice not required for forfeiture?

Answer 34

for non-payment of rent

Question 35

Financial limitations of what can be recovered under CRAR

Answer 35

CRAR only covers unpaid rent, interest and VAT. Outstanding service charge and insurance rent cannot be recovered by CRAR.

Question 36

If a company fails to meet a statutory demand for rent arrears by the specified date, what can the landlord do?

Answer 36

the landlord may petition for the winding up of the company

Question 37

statutory demand threshold for rent arrears where tenant is an individual

Answer 37

£5000

Question 38

statutory demand threshold for rent arrears where tenant is a company

Answer 38

£750

Question 39

When would a tenant be entitled to double compensation?

Answer 39

when the length of the tenant's occupation exceeds 14 years by the time the lease expires

Question 40

A landlord’s ability to forfeit only arises if

Answer 40

there is an express provision in the lease enabling it to do so

Question 41

When is a s.146 notice not required for forfeiture?

Answer 41

where forfeiture is pursued for non-payment of rent