Security of Tenure and Leasehold remedies

Question 1

What are the remedies a landlord can use for a breach of leasehold covenants?

Answer 1

Identifying the nature of the breach and the remedies available, including liability of guarantors.

This includes remedies for breaches related to non-payment of rent, repair obligations, and other covenants.

Question 2

What is the distinction between an ‘old lease’ and a ‘new lease’?

Answer 2

‘Old lease’ refers to leases before 1st January 1996, while ‘new lease’ refers to leases after that date.

Question 3

Who can the landlord look to for remedies in the case of a breach of tenant’s covenants?

Answer 3

The current tenant, any guarantor of the current tenant, former tenants, and any other guarantors.

Question 4

What liability does the original tenant have under an old lease?

Answer 4

The original tenant remains liable for any breaches of covenants, even if they have assigned their lease to another tenant.

Question 5

What is the effect of the Landlords and Tenant Act (Covenants) Act 1995 on new leases?

Answer 5

The original tenant is released from liability for the covenants as soon as the lease is assigned to another tenant.

Question 6

What is an Authorised Guarantee Agreement (AGA)?

Answer 6

A document that allows a landlord to hold the original tenant liable for the obligations of the new tenant for the duration of the new tenant’s lease.

Question 7

What is the first step a landlord should take for non-payment of rent?

Answer 7

Check that there is a covenant to pay rent in the lease and that the tenant has failed to pay by the due date.

Question 8

What is the limitation period set by the Limitation Act 1980 for recovering rent?

Answer 8

Six years.

Question 9

What does Commercial Rent Arrears Recovery (CRAR) allow a landlord to do?

Answer 9

Enter the property and seize and sell the goods belonging to the current tenant.

Question 10

What is the minimum arrears requirement for CRAR to be applicable?

Answer 10

At least seven days’ worth of rent must be outstanding.

Question 11

Can CRAR be used to recover arrears of other payments like service charges?

Answer 11

No, CRAR specifically applies only to basic rent in the lease agreement.

Question 12

What must a guarantor do if the tenant fails to pay rent?

Answer 12

Pay the rent and any other sums due under the lease if the tenant does not pay.

Question 13

What is a fixed charge in the context of landlord and tenant law?

Answer 13

A fixed charge is a payment such as rent or service charge that the landlord can claim from former tenants or their guarantors.

Question 14

What is the purpose of a rent deposit?

Answer 14

To serve as security for payment of rent and performance of the tenant’s covenants.

Question 15

What is forfeiture in leasehold law?

Answer 15

A remedy that allows the landlord to bring the lease to an end and gain vacant possession of the property.

Question 16

What must a lease contain for forfeiture to occur?

Answer 16

A forfeiture clause.

Question 17

What is the tenant’s right concerning forfeiture?

Answer 17

The tenant can apply to the court for relief from forfeiture.

Question 18

What is specific performance in the context of breach of the covenant to repair?

Answer 18

An equitable remedy that forces the tenant to comply with the positive covenant.

Question 19

What statutory provision limits the amount of damages a landlord can recover for disrepair?

Answer 19

s.18 of the Landlord and Tenant Act 1927.

Question 20

What does the self-help remedy allow a landlord to do?

Answer 20

Recover the costs of repair as a debt instead of a damages claim.

Question 21

What case approved the use of self-help clauses for landlords?

Answer 21

Jervis v Harris [1996].

Question 22

What must the landlord do if there is a breach of repair covenant?

Answer 22

Serve a notice specifying the works required to be remedied.

Question 23

What must a landlord do if there has been a breach of the repair covenant?

Answer 23

Serve a notice specifying the works required to be remedied

This allows the landlord to notify the tenant of necessary repairs.

Question 24

What can a landlord do if the tenant does not proceed with repairs after notice?

Answer 24

Enter the building, carry out the repairs, and recover the costs from the tenant as a debt

This shifts the claim from damages to a claim for debt.

Question 25

What is the significance of Jervis v Harris in relation to landlord remedies?

Answer 25

It establishes the self-help remedy for landlords ## Footnote This case allows landlords to take action without court intervention under certain circumstances.

Question 26

What are the available remedies for breaches of other covenants?

Answer 26

* Forfeiture * Injunction * Specific performance * Damages * Pursuing a former tenant or their guarantor * Deduction from a rent deposit deed ## Footnote These remedies vary based on the specific covenant breached.

Question 27

What is a mutual act involving a lease termination called?

Answer 27

Surrender ## Footnote It involves both the tenant and landlord agreeing to terminate the lease.

Question 28

What must be done for a surrender of a commercial lease to be legal?

Answer 28

It must be done formally by deed ## Footnote Informal surrender is acceptable for regular leases but not for commercial leases.

Question 29

What happens to a former tenant's obligations after lease assignment if granted before January 1, 1996?

Answer 29

The former tenant continues to be bound by the covenants in the lease ## Footnote This is true even after the lease has been assigned to another tenant.

Question 30

What is the effect of the 1954 Act on lease termination?

Answer 30

It prevents common law termination for protected tenancies ## Footnote This means leases may not end at the term's expiration if they are protected under this Act.

Question 31

What is required for a periodic tenancy to be terminated?

Answer 31

A notice to quit must be given by the landlord or tenant ## Footnote The length of notice depends on the tenancy period.

Question 32

What is the minimum notice period for a yearly tenancy termination?

Answer 32

At least half a year’s notice ## Footnote This notice must expire at the end of a completed year of the tenancy.

Question 33

What is 'merger' in the context of lease termination?

Answer 33

It occurs when the tenant acquires the immediate reversion to the lease ## Footnote This effectively ends the lease as the tenant becomes the landlord.

Question 34

What is the purpose of the 1954 Act?

Answer 34

To provide security of tenure for business tenants ## Footnote This allows tenants to remain in the property after the contractual term expires.

Question 35

What must a landlord do to terminate a protected tenancy under the 1954 Act?

Answer 35

Serve a s.25 notice of termination ## Footnote This notice must specify the termination date and follow specific time limits.

Question 36

What should a tenant do if they wish to renew their lease under the 1954 Act?

Answer 36

Serve a s.26 request for a new tenancy ## Footnote This request must follow the same time limits as the landlord's s.25 notice.

Question 37

What is the required notice period for a tenant to end a lease under s.27?

Answer 37

Three months' prior written notice ## Footnote This is applicable for tenants wishing to terminate after the contractual expiry date.

Question 38

What happens if a landlord does not oppose a tenant's s.26 request?

Answer 38

The parties will enter into negotiations for a new lease ## Footnote However, the tenant should still apply to court to protect their rights.

Question 39

True or False: A tenant is automatically released from liability after lease assignment if granted on or after January 1, 1996.

Answer 39

False ## Footnote The tenant continues to be bound by the covenants unless they entered into an AGA with the landlord.

Question 40

What is the consequence of the landlord serving a s.25 notice late?

Answer 40

The tenancy continues for an additional month beyond the lease expiration ## Footnote This allows the tenant to retain rights under the lease until proper notice is fulfilled.

Question 41

What must a tenant do to safeguard their rights under the 1954 act?

Answer 41

Make an application to the court before the commencing date of the new tenancy specified in the s.26 request ## Footnote This is important to ensure the tenant does not lose their rights.

Question 42

When must the counter-notice be served?

Answer 42

Before the date of the new tenancy specified in the s.26 request ## Footnote Unless the landlord agrees on an extension of time.

Question 43

What can a landlord do if they oppose a tenant's s.26 request?

Answer 43

Apply to the court for an order of termination of lease mentioned in the counter-notice ## Footnote This action cannot occur if the tenant has already submitted a s.26 request.

Question 44

What happens if the landlord does not oppose the tenant's s.26 request?

Answer 44

A counter-notice is not needed, and the parties will negotiate on the terms of the new lease.

Question 45

What is required for a landlord to successfully oppose a tenant's request under s.30?

Answer 45

Establish grounds of opposition and state the reason based on the facts given.

Question 46

Name three discretionary grounds for opposition under s.30.

Answer 46

* Tenant failing to repair * Tenant's consistent delay in repaying rent * Tenant’s breach of their other obligations

Question 47

What are the mandatory grounds for opposition under s.30?

Answer 47

* Landlord has offered alternative accommodation * Landlord intends to demolish and reconstruct the property * Landlord intends to occupy the building

Question 48

What must a landlord demonstrate for ground (f) regarding demolition or reconstruction?

Answer 48

* Firm intention to carry out the works * Intention to demolish or reconstruct the premises * Cannot reasonably carry out the work without obtaining possession

Question 49

What is the five-year ownership rule for landlords wishing to occupy the building?

Answer 49

The landlord cannot submit this ground unless they have owned the premises for more than 5 years before the ending of the current tenancy.

Question 50

What must a landlord demonstrate to occupy the property for their own business?

Answer 50

Firm and settled intention and reasonable prospect of achieving their intention.

Question 51

What is the maximum term for a new lease?

Answer 51

Cannot exceed the number of years specified; typically less, e.g., 5 or 7 years.

Question 52

When does the new lease term commence?

Answer 52

Three months after the proceedings have been disposed of.

Question 53

What rent is the new lease based on?

Answer 53

Open market rent having regard to other terms of the tenancy.

Question 54

What factors do courts disregard when assessing rent?

Answer 54

* Tenant and their predecessors' occupation * Any goodwill attached to the building * Improvements made by the tenant * Value addition due to the tenant’s licence in licensed premises

Question 55

What can the court do regarding rent review clauses?

Answer 55

Insert a rent review clause, even if there wasn’t one in the previous terms.

Question 56

What happens if there is no agreement on the terms of the new lease?

Answer 56

The court can fix the terms, taking into account the current tenancy and other relevant circumstances.

Question 57

What happens if a tenant revokes the fixed terms set by the court?

Answer 57

If the landlord does not agree, they must appeal.

Question 58

What compensation is a tenant entitled to if the landlord successfully opposes a new lease?

Answer 58

Equivalent to the relatable market value of the holding of property.

Question 59

What happens to the compensation value if the tenant has been in possession for over five years?

Answer 59

The market value will be twice the relatable value.

Question 60

What is the legal status of agreements restricting or excluding compensation?

Answer 60

Such agreements are void if the tenant has been in possession for five years or more.

Question 61

Fill in the blank: The landlord must show that they have a _______ to occupy the property.

Answer 61

firm and settled intention

Question 62

True or False: Grounds (a), (b), (c), and (e) are mandatory for a landlord to oppose a new lease.

Answer 62

False