Property- Security of tenure Flashcards
(20 cards)
When does the act apply & When would it not apply?
Automatically to all commercial leases unless LL and T agree to opt out.
Opt out process:
1) LL serves T notice at least 14 days before exchange/lease starts
2) T must make a declaration which can be a) simple if notice served on time or b) If notice given with less than 14 days must make statutory declaration in front of a solicitor
3) Lease must contain a clause advising Sec of T has been excluded and reference the notice/declaration. Dec must be annexed to the lease
What does Section 26 of the Landlord and Tenant Act address?
Section 26 addresses the rights of tenants to request a new tenancy and the process for landlords to refuse.
How can a tenancy end under the 1954 Act?
1) S25 notice by LL
2) S26 notice by Tenant
3) S27 notice by Tenant
Fill in the blank: Under Section 26, a landlord must respond to a tenant’s request for a new tenancy within _____ months.
2
What is one key requirement for a landlord to successfully oppose a new tenancy under Section 27?
The landlord must demonstrate a valid reason as specified in the Act.
What does Section 30 of the Landlord and Tenant Act primarily deal with?
Section 30 deals with the conditions under which a landlord can oppose the renewal of a tenancy.
Fill in the blank: A tenant may be entitled to compensation if a landlord successfully opposes a new tenancy under Section ____.
30
Multiple Choice: Which of the following is a valid ground for a landlord to oppose a new tenancy under Section 30?
The landlord intends to occupy the property themselves.
Short Answer: What must landlords provide to tenants when opposing a new tenancy under Section 30?
A written notice stating the grounds for opposition.
What is the process for ending the lease under section 25?
1) LL serves notice to Tenant with max 12 and min 6 months from the proposed termination date. As well as the date the notice must indicate if the LL will oppose an application for a new tenancy and if so on what grounds.
2) T can oppose the notice (counter-application) apply for a new lease or do nothing. If nothing is done lease will be terminated. Must apply before the end date specified in LL notice.
What is the maximum notice period a landlord must give when opposing a new tenancy under Section 30?
Not less than 6 months.
What compensation may be due if a tenancy is ended under S25 or a refused S26?
If the court rules a T must vacate they may still be entitled to compensation. If the reason for vacation is one of the no-fault/mandatory ones (LL wants to take possession, renovate etc) compensation may be awarded. If it is one of the discretionary ones eg rent arrears none will be awarded even if this is combined with a no fault ground.
Compensation may also be due if the LL makes a misrep or concealment of facts re the grounds that causes court to find in their favour or for tenant not to pusue renewal.
Compensation is based on rateable value of the premises.
What are the mandatory grounds for refusing a new tenancy?
1)The landlord intends to demolish, reconstruct or carry out substantial works on the property. LL must have firm and settled intention to do the the works and cannot complete them with tenant remaining in premises.
2) Alternative suitable premises have been offered
3) LL intends to occupy premises himself - must be for own business or residential and long term
4) L is subletting to T and now wants to take back whole property to sell or let as one piece.
What is a friendly notice?
LL serves notice but with no grounds opposing new lease. This means happy to enter into a new lease subject to negotiations e.g. rent increase
What are the discretionary reasons for refusing renewal?
1) Serious Breach of repairing obligation by T
2) Persistent and serious delay in paying rent
3) Other serious and persistent breaches of the lease
What is the process for a section 26 notice?
1) T serves notice on LL to terminate current lease and start a new one on specified date. The formal requirements for the request are:
(1) it must show the date for the commencement of the new tenancy, which must be not more
than 12 months nor less than 6 months after the making of the request;
(2) it must set out the proposals for the new tenancy – the proposed rent and the premises to
be included;
(3) it must be in the prescribed form; and
(4) It must be signed by a director
2) L can oppose the renewal via a counter-notice within 2 months and citing one of the grounds. If counter not served cannot oppose renewal and T can apply for renewal once 2 months passes.
3) If renewal is not opposed no court involvement needed and T/LL can negotiate new terms. T should still apply to court before proposed date to retain protections if negotiation still ongoing at that point.
4) If LL opposes renewal court will decide.
What does tenant need to do if they want to continue a lease on existing terms?
Nothing, lease will automatically continue past end date unless LL serves S.25.
Why would a T serve a S26?
1) They want to assign the lease so wish to extend it to make it more appealing.
2) Wants to negotiate the rent
3) Wants to make improvements on property so wants surety of longer occupation before spending money on site.
What is S27 used for?
T wants to notify L that they are ending the tenancy without renewal. May be used if they want to stay on a little after end of the tenancy but not go onto rolling terms. Must serve at least 3 months before Contractual end date or give three months notice if already rolling. Once served cannot then serve a s26.
What is a section 40 notice?
The T or LL exercising their right to information about the other party, often used when making a decision re whether to renew a lease or not. An S40 notice served by a landlord on a tenant seeking information will require the tenant to state whether there has been a contracting out of any sub-letting and whether a Section 25 notice or a Section 26 notice has been served.
An S40 notice served by the tenant on the landlord will require the landlord to state: whether there is a superior lease, and whether a Section 25 or Section 26 notice has been served.
Must respond within a month, can also be used for basic info e.g who is the current LL.
