Topic 8 - Lease Termination

Question 1

What does ‘effluxion of time’ mean in lease termination?

Answer 1

It means that the lease ends at the end of the contractual term.

A protected tenant can hold over after the end of the term.

Question 2

What is a break clause in a fixed term tenancy?

Answer 2

A break clause allows the lease to be ended before the end of the contractual term.

If the tenant exercises a break, it is effective with a protected tenancy.

Question 3

What is the purpose of a notice to quit?

Answer 3

It is to inform the other party that they intend the tenancy to end.

The notice period varies depending on the tenancy type.

Question 4

What does ‘surrender’ mean in the context of lease termination?

Answer 4

Surrender means that the tenant gives up its leasehold interest to the landlord with the landlord’s agreement.

Question 5

Define ‘merger’ in lease termination.

Answer 5

Merger occurs when the tenant acquires the landlord’s interest, or a third party acquires both interests, ending the lease.

Question 6

What happens if a fixed term tenancy without security of tenure expires?

Answer 6

The landlord can require the tenant to vacate the premises, and refusal may lead to the tenant being treated as a trespasser.

Question 7

What is a tenant at will?

Answer 7

A tenant at will is someone who remains in occupation with the landlord’s consent after the lease has expired.

Question 8

What must a notice to quit specify?

Answer 8

It must give a specific date to vacate, which must expire on the first or last day of the tenancy period.

Question 9

True or False: A periodic tenancy can be contracted out.

Answer 9

False.

Not every periodic tenancy qualifies as a protected tenancy.

Question 10

What is required for a landlord to serve a section 25 notice?

Answer 10

It must follow notice requirements of 6 to 12 months’ notice of the termination date.

Question 11

What is an express surrender?

Answer 11

An express surrender is a voluntary agreement by both landlord and tenant to end the lease, typically made by deed.

Question 12

What is a reverse premium?

Answer 12

A premium paid by the tenant to give up its interest in the lease.

Question 13

What is the main remedy available to a landlord for a tenant’s breach of lease?

Answer 13

The landlord can claim for damages in court.

Question 14

What does an action in debt allow a landlord to do?

Answer 14

It allows the landlord to recover unpaid rent or service charges through court proceedings.

Question 15

What is the time limitation for recovering rent through an action in debt?

Answer 15

Limited to rent due in the six years before the issue of proceedings.

Question 16

What is Commercial Rent Arrears Recovery (CRAR)?

Answer 16

CRAR is a self-help remedy to recover unpaid commercial rent without court proceedings.

Question 17

What are the requirements for CRAR?

Answer 17

Must be purely commercial, a minimum of seven days’ rent owed, and the lease must not be forfeited.

Question 18

What is specific performance in lease agreements?

Answer 18

An order requiring the tenant to fulfill a specific obligation, such as repairs.

Question 19

What is forfeiture in the context of lease agreements?

Answer 19

Forfeiture is the landlord’s right to re-enter the premises and terminate the lease.

Question 20

True or False: Forfeiture is an automatic right for landlords.

Answer 20

False.

Forfeiture is only permitted if the lease provides for it.

Question 21

What must a landlord do before forfeiting a lease for breach of obligations?

Answer 21

Serve a section 146 notice detailing the breach and allowing the tenant a chance to remedy it.

Question 22

What constitutes a ‘once and for all breach’?

Answer 22

A breach that, once waived, cannot be regained for that specific breach, such as non-payment of rent.

Question 23

What are ‘continuing breaches’?

Answer 23

Breaches that allow the landlord to regain the right of forfeiture each day the breach continues.

Question 24

What is a common reason for a landlord to have the right of forfeiture?

Answer 24

Failure to keep the premises in repair

Question 25

What must a landlord do before proceeding with forfeiture for breach of repairing obligation?

Answer 25

Serve a section 146 notice detailing the remedy and giving the tenant reasonable time to remedy the breach

Question 26

What is relief from forfeiture?

Answer 26

A discretionary remedy that restores the lease as if forfeiture had never occurred

Question 27

Under what circumstances can a tenant typically obtain relief from forfeiture for non-payment of rent?

Answer 27

By settling all rent arrears and landlord’s costs

Question 28

Who else can seek relief from forfeiture besides the tenant?

Answer 28

* Mortgagee * Undertenant

Question 29

What is the main rationale for the law being more generous to tenants regarding breach of repair obligations?

Answer 29

Almost all tenants will be in breach of their repairing obligation in some way, and these breaches are capable of being repaired

Question 30

What does the Leasehold Property (Repairs) Act 1938 (LPRA38) stipulate?

Answer 30

It applies to leases for a term of seven years or more with at least three years left to run

Question 31

What happens if a tenant serves a counter-notice after a section 146 notice is issued?

Answer 31

The landlord must get leave from the court before proceeding

Question 32

What is the measure of damages for a landlord regarding a repairing obligation?

Answer 32

The loss of value to the landlord’s reversion, not the cost of repairs

Question 33

What is a Jervis v Harris clause?

Answer 33

A clause that allows the landlord to enter the property, carry out repairs, and recover costs from the tenant

Question 34

What are the advantages of a self-help (Jervis v Harris) clause for landlords?

Answer 34

* Quick and efficient * No need to involve court * Full cost of repairs can be recovered

Question 35

What is the primary advantage of Commercial Rent Arrears Recovery (CRAR)?

Answer 35

Quick and efficient recovery without needing to involve the court

Question 36

What is a disadvantage of using damages as a remedy for repairing breaches?

Answer 36

Limited to the reduction in value of landlord’s reversion and requires a section 146 notice

Question 37

What might a landlord do if they cannot seek damages or start forfeiture for a breach that hasn't occurred yet?

Answer 37

Apply for an injunction to prevent the intended breach

Question 38

What are the limitations of using a guarantor for security arrangements?

Answer 38

There must be a guarantor

Question 39

What is a rent deposit deed, and what are its limitations?

Answer 39

An arrangement to secure rent, limited to a certain number of months’ rent and relies on the tenant topping up once used

Question 40

What is a potential disadvantage of having a former tenant as a security arrangement?

Answer 40

The former tenant may end up taking an overriding lease and becoming the tenant

Question 41

Fill in the blank: A landlord's strategy for tenant breaches may involve choosing between __________, forfeiture, or specific performance.

Answer 41

damages

Question 42

True or False: Specific performance is often granted for repairing obligations.

Answer 42

False