LTA 1954 - s30 grounds

Question 1

what are the s30 grounds?

Answer 1

a) T’s failure to repair
b) T’s persistent delay in paying rent
c) T’s substantial breach of other obligations
d) L has offered alternative accommodation
e) Tenancy is underlet of part
f) LL intends to demolish/reconstruct (most common)
g) LL intends to occupy for own business/residence

Question 2

which grounds are discretionary?

Answer 2

a) T’s failure to repair
b) T’s persistent delay in paying rent
c) T’s substantial breach of other obligations
e) Tenancy is underlet of part

Question 3

what are the mandatory grounds?

Answer 3

d) L has offered alternative accommodation
f) LL intends to demolish/reconstruct
g) LL intends to occupy for own business/residence

Question 4

what needs to be proven in relation to the discretionary grounds?

Answer 4

LL must prove ground and that T ought not to be granted a new tenancy on the facts.

Expensive – court hearing required.

Question 5

what needs to be proven in relation to the mandatory grounds?

Answer 5

LL only has to prove ground

Question 6

in relation to ground d) LL has offered alternative accommodation, what must LL evidence?

Answer 6

the accommodation offered was suitable and on reasonable terms

Question 7

in relation to ground f) LL intends to demolish/reconstruct, what must LL evidence?

Answer 7

LL must evidence:
o Firm intention to carry out work (i.e. PP, finances)
o Intends to demolish/reconstruct whole or part +
o Cannot be done without obtaining possession

Question 8

in relation to ground g) LL intends to occupy for their own business/residence, what must LL evidence?

Answer 8

LL must evidence:
o Firm intention to carry out work (i.e. PP, finances)
o Taken practical steps to occupy
o Reasonable prospect of achieving its intention
o + can only rely on g) if they have owned the property for last 5 years (unless brought with vacant possession)

Question 9

when will T be entitled to compensation?

Answer 9

T entitled to compensation if LL successful on grounds E, F or G

Question 10

what rate of compensation is payable?

Answer 10

Entitled to rateable value of property (= hypothetical annual rent)

If T + predecessors in the same business have been in occupation for 14+ years entitled to 2x rateable value

Any attempts to exclude this are void if T has been in occupation 5yrs+

Question 11

when the court is involved, what is the position regarding the terms of the new lease?

Answer 11

if parties cannot agree:
* LL can insist T’s new lease inc. entire property (even if only part before)
* Term must be reasonable + not exceed 15 yrs
* Rent is open market rent. Court must disregard: goodwill, improvements, licences which add value
* The court can add rent review clause
* All other terms will likely be the same as the old lease

Question 12

once the lease has been determined, what are the next key stages?

Answer 12

• any appeal must be made within 4 weeks
• the lease then commences 3 months after the appeal date has elapsed

in other words, the lease will not commence until 4 months after the order is made (subject to there being no appeal)

Question 13

what can parties do if they are unhappy with the order?

Answer 13

T can apply for order to be revoked (LL can’t, LL would need to appeal)