Property Practice Flashcards

Question

What action can the LPA take in respect of a breach of planning permission

Answer 1

1. Enforcement notice (rectify breach) * Serve on owner, occupier and any other person with interest * Effective 28 days after service * Notice will set out breach and the steps that must be taken to rectify the breach and the timescales * Can be issued for any type of planning breach and expedient to issue notice * Anyone with interest can appeal * *In wales, LPA can serve enforcement **warning** notice where breach of planning control and a **reasonable prospect PP would be granted if app was made*** 2. Stop notice (stops activity for 28 days whilst above notice kicks in) * Temp lasts 28 days * Use in conjunction with above, not on own * Bridges gap and **suspends the activities which are in breach** for 28 days whilst enforcement notice takes effect * LPA can get injunction in rare circumstances 3. Breach of a condition notice (like enforcement notice but for conditions) * Similar to enforcement notice but only used when the **conditions attached to permission are brerached**. * No appeal 4. Injunction * Discreionary re,edy * Actual or **anticipated** rbeach of planning control * Must show option is **expedient and necessary**.

Answer 2

1. Operational development with no planning permission (altering the physical or functional characteristics of land or buildings e.g building, engineering, mining) - 4 years; 2. Change of use **to a single dwelling house** - 4 years; or 3. 10 years for other breaches e.g - material change of use or breach of planning permission / conditions Can be fined for not actioning planning notice ## Footnote Shortest limits are 'normal' development with no planning & change of sue to single dwelling. All other rebaches 10 inc breach of permission.

Answer 3

Relate to health and saftey - controls material, construction methods etc. Consider at the same time as planning. If don't nee planning will still need to **apply** for building regulation consent. Buildign control deals with this. Once satisfied, Building Control will issue a **certificate of compliance**. In some trades you can self-certify for example, plumbing, installing windows.

Answer 4

1. Proceedings - limitation period of 2 years from completion 2. Enforcement notice - within 1 year of completion to require alteration 3. Injunction - no time limit fi the work is unsafe. This is why buyer's should get a structural survey. Compliance - carry out a CON29 search which is part of the local search and will show details of any building regulations consents and certificates granted. If no consents granted, buyer can ask the seller to obtain a **regularisation certificate from the local authority**. This will tell the owener what needs to happen to bring it up to scratch. Can get insurance but usually only overs compliance and regulations costs if LPA bring a claim. NOT personal injury or business interruption caused be a defective building.

Answer 5

Grade 1, Grade 2(little start) or Grade 2. Includes: building, any objct or structure fixed to building or within curtilage of building and forms part of land and has been sicne **1 July 1948.** Need Listed Buildign Consent to demolish, alter or extent (in addition to PP). Maybe even for internal alterations. Classes of development under GDPO do not apply to listed buildings so need express PP.

Answer 6

Character or appeareance of area desirable to maintain or enhance - broader than listed. Features recognised as part of character. Difficult to make changes - 6 weels notice to LPA for work to a tree. More planning permission needed e.g for external building.

Answer 7

TAKE INSTRUCTIONS! Check what has been agreed at marketing stage, check buyer has been provided with an Energy Performance Certificate. Seller must make one availible in 7 days of request and in any event within 28 days (free of charge) of marketing for sale

Answer 8

1. Seller's solicitor needs to obtain offical copies & title plan from land reg 2. For seller to deduce title, needs to give buyer official copies **less than 6 months old** 3. Buyer will find out if there are overriding interests that affect the property (searches & enquiries) 4. On official copies, edition date is last date updated (probs last sale) search from date is is date of official copies 5. Buyer to inspect official copies looking for any incumbrances, rights that effect the land (albeit it benefitting the land or any obligations), title defects, notices/restrictions etc **Property register** * Things benefitting property such as easements or rights, or if these come with obligations * May show things that usually come with land like right to light or air are excluded from title **Proprietorship** * Owners/class of title: (a) Absolute title: best clss, registered proprietor has vested title subject only to entries on register, overriding interests or if P is trustee then minor interest that have notice of (like benes under trust) (b) Possessory title: Not based on documents, based on occupation. Lost title deeds, got property through adverse possession (which is squatters rights). Risk someone can challenge ownership as the property will be subject to any covenants or rights affecting the property. Without the title deeds you cannot know what these are. (c) Qualified title: there is a specific defect in the title that cannot be overlooked. E.g title depended on a transaction found to be in breach of trust. Will be registered as qualified to preserve the beneficiaries interest. * Indemnity chains * Restrictions on owners abilities to sell (notices & restrictions (e.g for lenders) **Charges reg** - Incumbrances - Covenants, easements, charges over land, leases, notices registered by third parties claiming an interest

Answer 9

1. Check if it is registered or subject to application for first reg. Check for caution against first reg (warns of interests in land) e.g easement. Use **Index Map search at the Land Registry on Form SIM** with a plan of the property to check these. 2. If not reg, seller provides copies of the title deeds. If Sale of whole, give over on completion. If sale of part just cert copies. 3. On completion, when receive the oriignals, check they are the same as the copies - **Verification of title** this is called. Deduction of title: 1. Obtain paper deeds from client (conveyances, mortgages, assents etc). Or from mortgage company 2. Find good root of title - most recent doc (pref conveyance - must be at least 15 years. Conveyance will have checked back 15 years so technically 30). Can ignore all other docs accept where root refers to third party right created in previous conveyance. Then may need conveyance as buyer is entitled to call for it as will probs be binding. 3. Create epitome of title which is schedule of all docs from and inc root until present day. COpies of docs attached. 4. Check each title deed in EoT for: (a) Chain of ownership (no one should be missing - unbroken chain. May be dif person if someone died If so need grant of probate) (b) Description of land - shouldnt have changed unless sale of part? (c) Stamp duties - use to pay on conveying docs prior to Dec 2003, now pay on transaction. Used to be embossed stamp. (d) Incumbrances - Easements usually - **EXCEPTING AND RESERVING** as previous owneris reserving a right, **SUBJECT TO** often introducing incumbrane such as obligation to pay road (e) Execution - most need to be deeds i.e (a) be in writing; (b) clear on face its a deed; (c) signature by person granting interest and witness who attest sig and (d) delivered as a deed ("this document has been executed as a deed and has been delivered and takes effect from the date stated at the beginning"). Buyer only executes or trasnfer or reg land, co-oweners always will or indemnty. Only sign if making declaration about natue (f) Land charge searches - some incumbrances are only binding if registered at land charge against estate owner. Most common ones: (a) C(iv) - estate contract (b) D(ii) - restrictive covenant (c) D(iii) - Equitable easement (d) F - Home right Solicitor should therefore carry out a land charges search against every estate owner in epitome of title to see if they have and charges registered (even if ownership predates root) Search for years of ownership using **K15** and if in doubt as to ownership years, search back to 1926 when land reg system introduced.**Lender not estate owner**! No need to search them. if someone died and personal reps give assent, neeed to seach personal reps too!!!!

Answer 10

s44 LPA 1925: 1. Showns who owns whole interest (legal and equitable); 2. Shows recognisable description of land; 3. Casts no doubt on sellers title; and 2. At least 15 years old Best: conveyance or elgal mortgage (doubel guarantee - 30 years). If none, deed of gift or assent although unlikely ot have titled investigation. Legal and equitable, look for paragraph: ‘WHEREAS’ stating that the Vendor (seller) is ‘**seised** of the property … for an **estate in fee simple** and is selling the same to the Purchaser’ (buyer). The conveyance should also state that the Vendor conveys the land as ‘**beneficial owner** … unto the Purchaser. ## Footnote Estate in fee simple = legal, Beneficial owner = equitable

Answer 11

This doctrine dictates that a person who wishes to take advantage of a service/facility which benefits their land must also comply with any corresponding obligation. For example, to contribute towards the cost of providing and/or maintaining the service or facility – Halsall v Brizell [1957] Ch 169. The doctrine has two pre-conditions as set out in Thamesmead Town Ltd v Allotey (2000) 79 P & CR 557: (i) The burden must be ‘**relevant to the exercise of the rights** which enable the benefit to be obtained’. There must be a clear correlation between the benefit and the linked burden; and (ii) The covenantor’s successors in title must have the **opportunity to elect whether to take the benefit** (and accept the related burden) or to **renounce it** (and escape the related burden). This is not a direct method of enforcement of a positive covenant. It enables the owner of the benefited land to prevent the exercise of the rights if the costs of maintenance have not been paid.

Answer 12

1. Easements * Halsall v Brizell, any contributions? Have these been paid? Is the easement sufficient for needs? 2. Mines and minerals exceptions and reservations * Excepted/reserved mines and minerals:*"There is excepted from the registration the mines and minerals underneath the property together with ancillary powers of working thereof.*" Not just taking minerals but can also come onto land to take them. Property register in reg land, coneyance itself in unreg. * Exception means seller does not own mine sor minerals and cannot transfer them, encroachment onto them will be trespass. * **Enquiries:**May indicate mining in area so enquiries should be made about **ground stabiiltity** and **subsidence** * All interests in coal are now vested in Coal Authority. Check Index Map search (reg or unreg) to see if the mines and minerals are registered under a **different title**. If so you can identify the owner of the mines and minerals to see if there are any associated rights.

Answer 13

3. Declarations as to rights of light and air Sometimes a landowner will sell off a part of their land (‘Part A’) and retain the other part (‘Part B’) for their own purposes. In order to preserve the right to develop Part B in the future, they may have declared in the transfer of Part A that Part A does not enjoy the benefit of any rights of light and air over Part B. **Enquiries**: enquiries about the extent and location of the adjoining land owned by the Vendor should be made and the buyer will need to be informed and asked whether this reservation of rights to light and air causes concern given the likelyhood of development.

Answer 14

3.Co-ownership In registered land, it can be assumed that the equitable interest is held as a joint tenancy unless a restriction appears in the Proprietorship register in the following terms: *RESTRICTION: No **disposition** by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered **unless authorised by an order of the court**.* * In unregistered land, the conveyance to joint buyers will state whether the equitable interest is to be held as joint tenants or tenants in common * If joint owners, but being sold by one, find out why. Are they dead? Seek death certificate. * In registered land, the buyer can assume that the equitable joint tenancy was not ‘severed’ (turned into a tenancy in common) prior to the death of the deceased co-owner in the absence of the restriction in the Proprietorship register. * Presume not severd in unreg if three conditions of Law of Proprty Joint Tenancts Act met: (1) No written record of severance on conveyance to joint tenants (2) No bankruptcy proceedings registered against either tenant at **Land Charges Registry** (3) Trasnfer by surviving joint owner contains a stateemnt saying that the survivor is soley and beneficailly entiled * if co ownership was Tenants in Common will need second trustee appointed to overeach interest. Provided the buyer pays the purchase price to at least two trustees on completion, the equitable interest of the deceased co-owner will be overreached and the buyer will take the property free of it. Obvs not needed with joint tenants as suvivorship. * Or deceased co owners interst may have passed to co owener through will or intestacy. Prove by showing certifed copies of grant of probate nd assent from PRS to sruvivor.

Answer 15

1. Restrictive covs * Unreg land, post 1925 only binding if registered as Land Charge D(ii) against name of OG covenantor * ASk person who owns cov for release * Restrictive cov insurance (only if they don't know) * Apply to** Upper Tribunal (Lands Chamber)** obselete or no practical benefit of substantial value (or is contrary to public interest). May not be quick or cost effective. 2. Pos covs Chain of indemnity, will need to give equivalent indemnity. buyer will be liable to the seller in contract if they do not observe and perform the positive covenant. Provision for this must be made in the contract 3. Unknown covs * Sometimes a property is subject to covenants, but the nature of those covenants and the wording of them is unknown. Often this is because they were contained in an earlier deed which has since been lost. Will be clear in reg land that deets not availible on first reg.In unreg may be clear on face. * Safeest to assume covs are restrictive and willl be binding. Consider factors for deadling with problematic restrictive covs like insurance. The seller should take care to disclose this defect in title in the contract so that the buyer cannot object to it and use it as a reason not to complete the purchase 4. Mortgages * In unregistered land, a mortgage will appear as one of the title deeds listed in the epitome of title. A buyer will only be concerned with a mortgage that has not been discharged (paid off): a mortgage that has been discharged will have, usually on the back page, a ‘**vacating receipt**’ in the following terms: R E C E I P T NATIONAL MIDLAND BANK LIMITED hereby acknowledges to have received from [THE BORROWER] all monies intended to be secured by the written deed. * I fmortgage on prop buyer will want this discharged upon completion, check contract states it will be and get undetaking that solicitor will discharge

Answer 16

1. Leases * The existence of a lease will be a problem to a buyer who is expecting the property to be sold with vacant possession * Over 7 years needs to be reg in reg land or trasnfer of prevously unreg lease with more than 7 years left. However, also third party itnerest that should be reg agains landlord title (notices in charge reg of landlord). Protected and will appear as notices in Charge reg, If they are so protected by the date when the transfer of the property to the buyer is registered, they will bind the buyer. If a lease for a term of more than seven years is not so registered, it will not bind the buyer - may be overriding interest if in occupation. * Look at land manual for rules on overriding interests * In unregistered land, a legal lease (o**ther than a parol lease for three years or less**) will have been created by **deed** and should be one of the title deeds scheduled in the epitome of title 2. Notices * Only reg land. * A notice is an entry in the Charges register in respect of the burden of an interest affecting a registered estate or charge. * Can be agreed or unilateral * Entry of notice does not mean it is valid! Notice itself gives no rights - just warning * Ask seller what it is, make seller deal with it. Get seller to get noticed cancelled with Land Reg 3. Home Rights * statutory right created under the Family Law Act 1996 for a non-owning spouse or civil partner to occupy the matrimonial home. * NOT AN INTEREST IN LAND * Will bind buyer if protected by notice in cahrges reg or Class F land charge in unreg * If home right, seller should obtain from the non-owner occupier a release of all rights in property and agreement to vacate prior to completion. Dealt with in contract.

Answer 17

1. Survery 2. Local search (only prop itself and not the adjoining land. If like the view of a field opposite make specific enquiries about development) * Local land charges search (LLC1) - planning consent, tree pres orders, conservation orders, restrcitions on land by local authority * Standard enquiries of local authority (CON29) - planning permission, art 4 direction,liability for roab repair and land contamination * Optional enquiries (CON290) - more depending where house is, environmental / pollution notices, rights over commmon land 3. Water & drainage * Usually water company * Liability for maintaining drains and sewers * If not connected to public sewer will have to maintain at own cost 4. Pre-contract enquiries to seller * any disputes * Compliance with covs * Planning permissions 5. Environmental searches * Cost implications of cleanng contmainated sites * Desktop survey (is prop at risk), if yes then physical survery. Maybe get insurance 6. Flood search * Prop close to river / coady * Surfact level flooding * If risk identified then get specific report (like environmental above) * Insurance?

Answer 18

1. Chanel repair searches - The owners of certain properties in a **Church of England** parish where there has been a **medieval church** with a **vicar** could be liable to pay the cost of repairing the chancel of the parish church. - used to be overriding but not anymore (October 2013 lost), binds buyer if the previous trasnfer was pre oct 13 (reg prop) - Non reg: binding if mentioned in title needs or protected by **caution lodge before first reg**. Consider the registration gap it can be lodge after completion prior to the first reg being registered. - Insurance 2. Mining searches - All prop in coal mining area - You can check if the property is in a coal mining area by lookng at **Coal Authority’s interactive map viewer** - A coal mining search of the Coal Authority, on a** CON29M form**, will confirm if the property is in an area where mining has taken place in the past or is likely to take place in the future - Subsidence? If paid once may not pay out again 3. Canal and river trust search - If the property is adjacent to a river or a canal, the buyer needs to be made aware of any lia**bility for repair**s to the maintenance of the waterways, banks and tow paths, as well as whether the property has been affected by flooding in the past. ASk canal and river trust. 4. Commons search - common rights 5. Railways - Maintain boundry features? - Can't carry out certain work near line? - ASk seller can't ask netowrk rail 6. Highways - The replies to enquiry 2 of the CON29 form in the local search will provide certain information about the roads adjoining the property but not verges and pave,ents 7. Unreg land searches - An Index Map Search (‘SIM’) and a Land Charges Department search against the seller and previous estate owners will be necessary in any purchase of unregistered land 8. Co Search - Where the seller is a company, the buyer’s solicitor should carry out a company search at Companies House. This will confirm whether the seller has the capacity to enter into the contract, confirm the identity of the current officers of the company (to check the documents are signed by the right people) and to see if there are any fixed or floating charges secured on the property that will need to be discharged on completion. Repeat just before completion for solvency checks. Where the property is unregistered land, company searches should also be carried out against any corporate estate owners revealed in the epitome of title 8. Bankruptcy/insolvency search A solicitor acting for a lender should make a search against the borrower (who may also be their buyer client) to ensure that there are no bankruptcy or insolvency proceedings affecting them. Just before completiom and sometimes before exchange. Individual K16 at land charges department in plymouth. If co, co search

Answer 19

Implied terms: * The Standard Conditions of Sale (5th edition – 2018 Revision) (residential transactions and some simple commercial transactions, for example those involving properties which are empty, ) with a straightforward title and a relatively low price * The Standard Commercial Property Conditions (3rd edition – 2018 Revision) - more provs for management of occupational leases

Answer 20

1. Front page - particulars 9heck against proprioter reg or title deeds for unreg) 2. Standard conditions, part 1 apply auto but part 2 only applies if included (shorter) 3. Back is special conditions

Answer 21

Reg = class & title e.g LM6042 (Absolute title) Unreg = root: "*56 Blackhorse Drive, Dorking, Surrey RH4 5JS more particularly delineated and edged red on a plan annexed to a Conveyance dated 25 May 1955 between (1) Mark Phillip and (2) Simon Andrew (“The Conveyance”)* Yes under "specified incumbrances" e.g restrictive covs. If these are not specified, the seller could be in breach of SC 3.1.1, which says that the seller sells free of all incumbrances other than those specified in the contract or of a type listed in SC 3.1.2. The SCPCs have equivalent conditions in SCPC 4.1.1 and SCPC 4.1.2. Non-disclosure of an incumbrance burdening the property might result in the buyer having a right to rescind the contract and/or claim damages. Some solicitors don't class positive covs as incumbranes as don't run with land. Mortgage not included as will be discharged.

Answer 22

**Full title guarantee** - more implied covs, seller will be impliedly covenanting in the transfer of the property that: 1. They have the **right to dispose** of the land 2. They will do **all they reasonably can** t**o transfer the titl**e 3. In the case of **leasehold** land, the lease is subsisting at the time of disposal and there is **no breach of covenant making the lease liable** to **forfeiture.** 4. land is disposed free from incumbrances other than those the seller does not know about and could not **reasonably** know about. Law Prop Misc act limits scope (limits ones buyer knows about., and matters entered on rigsiters of title). Limited title guarantee - usually trustees or personal reps the seller has **not incumbered the property** and is **not aware that anyone else has done so since the last disposition** for value (so a seller who purchased the land for value will only be covenanting that incumbrances have not been created since they acquired the property) 3. No title guarantee ## Footnote Right to dispose, all reasonably can to transfer, lease subsisting and no breach for forfeiture, no incumbranes other than what seller knows or should reasonably know about

Answer 23

4% above base rate, if the parties are happy to use this rate, it is not necessary to fill in the gap on the front page of the contract. Stakeholder = can't hand over until completion (deposit), accept SC lets the solicitor hand over as a deposit on another house. Agent = This means that the deposit can be released to the seller immediately after exchange and can be used by the seller for any purpose whatsoever. Deposit 10% for both Ho wto pay for SC: 1. Cheque drawn down on lawyers client account; or 2. Electronic. How to pay for SCPC? 1. Electronic only

Answer 24

* whether the sale includes any contents or excludes any fixtures (special condition 3) * whether the property is to be sold with vacant possession or subject to leases or tenancies (special condition 4). * 5 will only be relevant where the time for completion has been altered by agreement and should be deleted if the parties have agreed that completion should take place by 2pm on the agreed day Others to consider including in written * the appointment of a second trustee for the purposes of the transfer (see 2.5.4) * arranging for the seller to obtain or pay for a restrictive covenant insurance policy (see 2.5.5) * disclosing a defect in title (eg see 2.5.7) * the seller selling with limited or no title guarantee (see 4.4.2 above) * a deposit of less than 10% and/or for the deposit to be held as agent rather than stakeholder (see 4.4.4 above) * the payment of VAT (see 4.4.7 below) * the removal of fixtures by the seller (see example below) * the inclusion of an indemnity covenant in the transfer to protect the seller from liability once they have lost physical possession of the property (see 2.5.6). (this is covered by SC 4.6.4 there is no need to expressly insert a special condition ) SC 5 and SCPC 8 provide that the seller is under no obligation to insure a freehold property unless required to do so by a special condition (after exchange)!. Where there are two policies in place on the same property, there is a danger that when a claim is made, the buyer’s insurer will reduce the proceeds because another policy exists. SC 5.1.5 and SCPC 8.2.4(b) therefore provide that if this happens and the buyer is unable to recover the full amount of the proceeds, the purchase price is reduced accordingly

Answer 25

Why contract terms to use for VAT in SC / SCPC? SC: VAT is not normally chargeable in residential transactions. The seller’s solicitor will usually choose to incorporate the SC, which provide in SC 1.4 that the purchase price and the contents price are inclusive of any VAT (because it is expected that no VAT will be charged or paid). SCPC: 1. Price exc VAT so VAT will be added on top - if new commercial building or old opting to tax etc 2. Price inc VAT and can't add on top - e.g old commerical no opt to tax (this is risk for seller - what if law changes and they need to now charge VAT but can't?_ * 3. The purchase price is exclusive of VAT, so VAT can be added on top in the unlikely event that the law changes to make an exempt supply chargeable at the standard rate, but the seller is contractually obliged not to opt to tax. If building is not standard rated (e.g old commericial and does not opt to ta)

Answer 26

Resi: Mortgage offer Commercial: Commitment letter with a term sheet attached followed by a facility agreement containing the detailed terms of the lending arrangement. 1. Lender is creditworthy 2. Property is good secuirty for loan Some mortgages can be pulled after exchange!!!! Mortgages are legal if **made by deed** and **completed by registration**. This is important to a lender as a mortgage made by deed has implied into it a power of sale under s 101 of the Law of Property Act 1925, although a mortgage deed will usually have an express power. No not usually but even where the lender is separately represented, it is common for the buyer’s solicitor to report to the lender on the results of the title investigation and the pre-contract searches and enquiries. The lender needs to know the borrower will have good title to the property just as much as the buyer, because it wants to know it can sell the property in the future if it needs to enforce the security. The buyer’s solicitor will be asked to **prepare a certificate of title **to **disclose to the lender any problems with the property**. Why says that the property has **good and marketable title**. Resi, form approved by *Law Society and UK Finance.* In commcerical use **Certificate of title produced by City of London Law Society.** Should a conflict of interest or instructions arise between the instructions of the buyer and the requirements of the lender the solicitor will be unable to proceed to purchase using the mortgage lender’s funds until the conflict of interest is resolved to the lender’s satisfaction

Answer 27

Both solicitors need to ensure that their client has signed their copy of the contract. In many cases a client will sign in ‘wet ink’, although a **2019 Law Commission report** concluded that an electronic signature can lawfully be used to execute a document provided: 1. the person signing the document intends to authenticate it; and 2. any execution formalities are satisfied. A solicitor can sign the contract on their client’s behalf if they have the client’s express authority to do so.

Answer 28

Law Society 3 Protocols for exchange: 1. Formula A - 1 solicitor holds both parts of contract duly signed. One soliciotr has already sent their copy prior to exchange. The undertakings are that: (A) the solicitor holding both signed parts of the contract will,** that same day**, send their client’s signed part of the contract to the other side by** first class post, through a document exchange, or by hand**. The buyer’s solicitor also undertakes, **that day**, to send to the other side a **banker’s draft or client account cheque** for the agreed deposit, with their client’s signed part of the contract if it is the buyer’s solicitor who holds both parts. 2. Formula B - each soliciotr holds contractcs- quicker. The undertakings in a Formula B exchange are that: (A) each solicitor holds their own client’s signed part of the contract; (B) that each solicitor will, t**hat same day**, send the signed part of the contract that they are holding to the other side by **first class post, through a document exchange, or by hand duly dated**; (C) and that the buyer’s solicitor, together with the signed part of the contract, will that day also send to the other side a **banker’s draft or client account cheque **for the agreed deposit. In practice, Formula B is by far the most common way of exchanging contracts. SC & SCPC allow the deposit to be sent electronically but the **protocol will need to be varied by way of agreement.** 3. Formula C - resi chains. Synchronising but rarely used as so complex. Exchange over the phone! Yes authority to exchange must be in writing

Answer 29

1. Binding contract - buyer to lose deposit if pull out 2. Buyer to insure 3. Seller holds legal title but holds beneficial interest for buyer. 4. Seller still pays outgoings

Answer 30

1. Indiivudal witness to stop allegation of undue influence. 2. How does company sign deed? (a) Affixing seal (b) 2 directors (c) Director and company sec (d) Director & witness * Buyer signs when it has an obligation or it is making a declaration (think indemnity cov, declaring beneficial interest under trust - co owners always sign. * If clear on face its a deef it is presumed to be delivered upon execution - rebutted if make it clear on cover letter it is not deliverd yet

Answer 31

* Conventionally, the transfer deed is completed by the buyer’s solicitor and sent to the seller’s solicitor for agreement immediately after exchange of contracts, but in straightforward residential transactions the transfer deed may be prepared by the seller’s solicitor and sent to the buyer’s solicitor in the pre-exchange package. TR1 - transfer of whole TP1 - Transfer of part 1 That seller hasn't further incumbered title (e.g granting new easements over the prop) 2 Solvency/bankruptcy check for lender; 3 Priority for buyer and lender

Answer 32

**Reg Land** * Land Reg search from "search from" date on official copies OS1 for sale of whole or OS2 for sale of part (plan usually needed for OS2). * Result on OSR1 or OSR2 * Search against title number * Will show new entries from search from date * Priority period of **30 working days** **from search from date**. Ends 12 noon on last day of priority period. * **app in NAME OF LENDER NOT BUYER** **Unreg land** * Land charge search using **K15** * Search result is K18 * Just against sellers names and not old estate owners * Priority period of **15 working days** from date of the search result * If can be completed in the 15 working day period pre-exchange then may not need to do a second 1

Answer 33

Reg: * Land charges search against name of buyer * K16 - this limits land charge search just to the bankruptcy register Unreg: * Just add buyer to K15 search done for seller If Company then check as close to completion as possible as no priority period. Telephone the Registry of Winding Up Petition at the Companies Court day of completion. Seller solvency: for unreg will appear in the K18 search results. Reg: Most conveyancers don't think it is necessary as Land Reg Act says if no notice or restriction about bankruptcy petition is on registered title then *buyer for value acting in good faith* will take **good title** from seller. If reason to worry or if high value can do same checks on seller using K16.

Answer 34

1. Buyer sends to seller solicitor to complete " completion information form" * handing over keys info * Place & method of completion * Docs to be handed over at completioon * Exact amoutn payable on completion * Undertakings for seller to give re morthahe redemption Form TA13 for resi undertaking. Receipeted form is DS1 or DS3 when redemmed. or confirmation that notice of release or discharge in electronic form has been given to the Land Registry as soon as you receive them?’

Answer 35

1. Certificate of title 'good and marketable title' 2. Solvency search for buyer 3. OS1R in name of lender 4. Executed but not completed mortgage deed Buyer solicitor ensure they have received mortgage advance from lender and balance of purchase price from buyer. Completion money usually sent electronically. Date TR1 after money is in, THEN date mortgage deed second. Can't date mortgage before as the buyer wouldn't own the house.

Answer 36

**In person** - Buyer goes to seller's office - Everything executed - Money senrt electronically - Buyer checks title docs against previois copies for unreg land - Hand over title docs and other relevant docs like planning permission - Arrange release of keys **By post** - More common but unreliable post - Law Society therefore introduce **Code for completion by post** which relies on undertakings **Law Society Completion By Post** - Seller's solicitor acts as agent - No cost to buyer - Buyer soliciotr set out instructions in writing - On receipt of money seller carries out instructions - Tell buyer its done - Then docs sent by first class post - **implied undertaking to carry out instructions **. Can be enforced through the Courts Title passes with completion in unreg land. Reg land it passes when registered. This is why need priority period for registration gap.

Answer 37

1. Seller discharges mortgage. Alternatively, the seller’s solicitor may ask the buyer’s solicitor to send the amount required to redeem the mortgage direct to the lender on the day of completion, with only the balance being sent to the seller’s solicitor. * Once the lender has received the amount required to redeem the mortgage from the seller’s solicitor, they will either: * complete Land Registry form DS1 and send it to the seller’s solicitor for onward transmission to the buyer’s solicitor; or * submit an e-DS1 electronic discharge through the Land Registry portal; or * use the Electronic Discharge (ED) system, sending an electronic message to the Land Registry which automatically removes the charge from the register. If the **ED or e-DS1 **system is used, the seller’s solicitor will not be sending a DS1 form to the buyer’s solicitor. Instead, the seller’s solicitor will send the buyer’s solicitor **confirmation** that notice of release or discharge in electronic form has been given to the Land Registr. 2. SDLT/LTT * Seller send TR1 to buyer, who arranges SDLT in 14 days of comp, or 30 days of comp for LTT. The payment, together with the t**ax return (SDLT1** in England and **Land Transaction Return in Wales**), will need to be sent to the relevant authority. This can be done online or using a paper application. * Application to Land Reg to register buyer will fail unless accompanied by SDLT 5 (receipt) or WRA certificate (receipt). 3. reg of new charge at CH * Company buys propt with a Mortgage? Reg charge on CH within **21 days of completion**. to ensure** constructive notice** of it is given to other creditors of the company. The time limit is absolute and cannot be extended without a court order. Failure to register r**enders the charge void** against a liquidator or administrator of the borrower and the borrower’s other creditors, so would seriously prejudice the lender’s security. 4. Land reg application * make when SDLT / LTT and CH charge done * Lender charge done by soliciotr (sometimes buyers sol) register for buyer done by sol (A) Reg: - applications to have the buyer registered as the registered proprietor of the land and the lender registered as the registered proprietor of the charge are made on Land Registry form **AP1.** - If mortgage redemmed with e-DS1 or ED the they will be gone. If DS1 sent then buyer must apply for mortgage to be discharged. Can be done on AP1 too. - an applicant for registration must complete Form **DI** setting out any **overriding interests** that burden the title. These will then be entered on the register and thus cease to be overriding **-APP (AP1) MUST BE SUBMITTED BEFORE EXPIRY OF OS1 PRIORITY PERIOD BEING 30 WORKING DAYS** (B) unreg: - An application for **first registration of title** must be made within **two months of completion** of the transaction on Form **FR1**. Docs accompanying must be listed in duplicate on D! which is sent to applicant's solicitor to say how long will be. - The Registrar needs to investigate title to allocate a class e.g absolute so needs all documents. Must be CERTIFIED COPIES for conveyancers, non-conveyancers must submit original deeds and docs. Docs include - all the documents which formed the evidence of title supplied by the seller’s solicitor * all the buyer’s pre-contract searches and enquiries relating to the title with their replies * the contract * requisitions on title with their replies * all pre-completion search certificates * the transfer deed * the seller’s mortgage, duly receipted * SDLT/LTT certificate * Form DI (see below) - All mortgage docs and OG mortgage deed - Props over £5k need details of conveyancer for each party (or if none evidence of partys identity) - **Title Information Document** (or ‘TID’) to the buyer’s solicitor when done (can use as evidence of new owenership). Not technically a title doc

Answer 38

1. The exchanged contract will usually contain the date for completion that the parties agreed. If it does not, SC 6.1.1 and SCPC 9.1.1 provide that the completion date is **2****0 working days after the date of the contract**. 2. Money needs to be paid 2pm day of completion, if not taken place next day (buyers default) 3. Time not of essence unless **notice to complete** is served (no immediate right for recission) 4. SC - buyer and seller can be forced to pay compensation. SCPC, only BUYER can. 5. Compensation calculated by percentage in contract of remaining sums due less contract price 6. Breach of contract so can sue for common law damages (Hadley v BAx) e.g wasted legal costs or movers etc. Sums received for compensation will be deducted (can't be overly comped) 7. Can serve notice to complete - **time of essencenow and give 10 working days to complete**. If don't can rescind and sue. If buyer default then seller take deposit. If other wya then give back

Answer 39

Another circumstance is where there has been a **misrepresentation** by the seller in a **plan or statement in the contract**, or in the **negotiations leading up to the contract**. However, rescission will only be allowed where the seller’s error or omission results from **fraud or recklessness**, or the buyer would be obliged to accept a property differing substantially (in quantity, quality or tenure) from what the error or omission had led them to expect. **Less serious misrepresentations only entitles the buyer to damages**

Answer 40

Dated on or after 19 June 2006 which are granted out of REG land must contain standard set of prescribed clauses. At beginning of lease and are a summary of the important details in the lease and bring together, in one place, all the information that the Land Registry needs in order complete registration. Saves time for land reg. Annual rent, usually payable quarterly on historic quater days: 1. 25 March 2. 24 June 3. 29 September 4. 25 December

Answer 41

1. Fixed 2. Periodic - Notice should be length of one period e.g 1 month. If 1 year period then 6 months notice instead. 3. Tenancy at will - terminated by any party at any time (e.g when still in occupation aafter lease ends)

Answer 42

1. Absolute cov (Cannot carry out stated action). Discretion for landlord to allow it once or vary lease or reject. 2. Qualified cov This type of covenant allows the tenant to carry out the stated action, but only if it obtains landlord’s consent first 3. Fully qualified cov This type of covenant allows the tenant to carry out the stated action if it obtains landlord’s consent first, but goes on to say that the landlord will not be able to withhold consent unreasonably. FRI lease - landlord gets full rental stream and does not have to dip into profit for maintenance repair. If does not make tenant pay for all then not considered 'investment quality' or ‘institutionally acceptable’ to the investment institutions such as pension funds and insurance companies. These institutions see prop as long term investtment and institutional investors answer to shareholders etc very strict view of lease with view to preserving capital of lease by: 1. Keeping building in good repair; 2. Lease reserves market rent with a mechanism to increase rent to keep steady income 3. Readily sellable so lease is acceptable to future buyers of freehold.

Answer 43

1. Must first be in disrepair to be in breach (physical conditions must have deteriorated) 2. Newbuilds always going to have wear and tear - need not be perfect jsut needs to be in "*state of repair as renders fit for occupation of reasonable minded tenant of class likely to take it"* 3. Repairs is just renewal of parts not reneal of whole 4. Can mean tenant has to repair inherent defect in the design and construction if this is the only way to repair. **BEWARE** - avoid additional wording - ‘*keep*’ a building in repair also means ‘put’ it into repair, even if that involves the tenant putting the building into a better state of repair than when they entered into the lease. - "keep property in good condition" - ONEROUS - Better "*shall repair the property*" If landlord is ensuring building make sure tenant is not responsible for fixing insured perils!

Answer 44

* if T has lease of whole then may get insurance themselves * If prop in multiple occupation more liekly LL takes out insurances and passes cost down ("insurance rent")

Answer 45

1. Landlord cov to insure the prop against defined risks * There is often an inclusive list of the risks which the landlord must insure against, for example ‘fire, storm, flood, etc’. Ensure landlords obligation to insure is limited and doesn't extend to crazy risks 'as the landlord sees fit' as these will be passed down to tenants. 2. Cov by tenant to pay for insurance * Called insurance rent, includes premium for building insurance AND often a policy for landlord's **annual loss of rent** if building damaged. LL will want! * MAKE SURE insured to 'f**ull reinstatement value**' inc architect fees, site clear up etc NO shortfall * Often tenant will pay for excess * Make sure landlord's insurance obligation does NOT include ' exclusions, limitations, excesses and conditions imposed by the insurer a' or tenant will be paying for it & will be spenny. * Need covenant by landlord to use insurance proceeds to reinstate but NOT absolute obligation to reinstate 3. Landlord use insurance proceeds to reinstate - Rather than absolute obligation to reinstate if shortfall (landlord won't want to do that) - Tenant wants this extended so landlord makes good shortfall - If can't make good who gets proceeds from insurance 4. Rent suspension - If not mechanism then teannt has to pay even if can't live there due to damage - loss of rent insurance will cover - usually limited in terms of duration such as 3 years 5. Termination - lease will often give the landlord the right to terminate the lease should reinstatement prove impossible. - Tenant should ensure can terminated after rent suspenion runs out Problems occur when the damage is caused by something not covered by the insurance policy. Tenant would have to repair under repair cov

Answer 46

If no alteration cov then tenant could do what they wanted!! 1. Absolute * Usually structural or exterior alterations * * s3 Landlord and Tenant Act 192*7 - **mechanism to allow tenant to carry out improvements even if prohibition on alterations**. Procedure (a) Tenant serve notice on landlord with proposals for improvements (b) Landlord has **3 months** to object to proposals (c) If object, tenant can apply to court (d) Court can authorise using following TEST: (i) Alterations add to the letting value of the property (ii) **Reasonable** to the character of the property (iii) Does not dimish value of ANY OTHER property of the landlord's (e) Instead of accepting or rejecting the proposal, the landlord can offer to carry out the work for a **reasonable** inc in rent (f) tenant need not accept but if they don't Court CANNOT give tenant authority to carry out.

Answer 47

* Usually non-structural and media services etc * Usually consent needed for landlord so they can keep control and impose conditions - consent and conditions usually contained in **license to alter**. * If consent needed then it is a qualifed covenant * A qualifed cov against "improvements" is turned into a fully qualified cov by statute meaning **consent cannot be reasonably witheld** - s19(2) Landlord and Tenant Act. * What is an improvement?: (A) Improve usefullness OR value of property; EVEN IF (B) Reduce value of Landlord's revisionary interest! * *Tenant would obvs prefer fully qualified cov in lease for alterations whether or not an improvement*

Answer 48

* obtained prior authorisation to make the improvements by using the s 3 statutory procedure is entitled to claim compensation for improvements at the end of the term that ‘**add to the letting value of the holding’** * rare as usually cov to remove all alterations and reinstate premises at end of term (so none left to claim comp for)

Answer 49

* . A landlord may therefore choose to impose a tenant’s covenant which restricts the use of the property to a single purpose: *Not to use the Premises other than as a restaurant* * No stat term turning qualified covs into fully qualified BUT **landlord cannot change premium for allowing consent**!

Answer 50

Creating an interest in prop for benefit of third parties - without this tenants could sub-lease or dispose of interest in any way it wants. Includes: - Assignment - sub-lease - Charging such as mortgage - Sharing occupation - Informal arrangements like at will tenancy Usual procedure is an absolute cov against all alientation and then exceptions

Answer 51

Most commercial leases will allow assignment of whole but not part. 1. s19(1)(a) Landlord and Tenant Act 1927 A qualified covenant to assign is converted to a fully qualified cov - like improvements 2. s19(1A) LTA - not resi! Usually Landlord will insert pre-agreed conditions in lease which will make refusual deemed reasonable if cannot meet: (a) Authorised guarantee agreement (b) Assignee provides guarantors (c) Assignor up to date with rent (d) Assignee is of sufficient financial strength 3. s1 Landlord and Tenant Act **1988** where there is a qualified covenant on assignment (whether the proviso that consent is not to be unreasonably withheld is express or implied by statute) where tenant has made a **written application** for consent the LL must within a **reasonable time**: (a) Give consent (except where it is reasonable not to) (b) Serve notice specifying decision and in addition: (i) If consent given but subject to conditions, give conditions (ii) If consent witheld then explain why GUIDELINES FOR REASONABLENESS (a) Point of FQC is to give LL protection of undesireable tenant or having prop used in bad way (b) Cannot reject on grounds not at all related to tenant and landlord relationship (i.e want to sell lease instead) (c) LL need not prove his conclusions as long as a **reasonable person would come to the same conclusions** (d) Can refuse grounds of assignee's purpose of the lease EVEN IF PURPOSE NOT FORBIDDEN (e) Only have to consider landlord's own interest but would be unreasonable to consider detriment to tenant if it would be extreme and disproportionate to landlord's benefit (f) Question of fact Examples when has been reasonably refused: - bad references - longstanding breach of repair cov and not satsified assignee could remedy - Assignee may compete with landlords business - where the assignment would reduce the value of the landlord’s reversion (although this will **not be a reasonable ground** for withholding consent if the landlord has **no intention of selling the reversion** - if assignee wants protection under *Part 2 of Landlord and Tenant Act **1954*** unlike tenant

Answer 52

Tenant granting a lease (sublease). Estate in land just shorter. Tenants lease still in place unlike assignment. The tenant is allowed to make a profit. Can underlease just a part. * Maybe if landlord has concerns about the financial strength of the proposed new occupier, so will not give consent for an assignment of the headlease * May be good for tenant too - if assignee defaults tenant probs has given AGA so will be liable. If undertenant has not paid then headtenant can exercise landlord's control and have ability to deal with difficulties better * May be that no one wants assignment as rent too high, could underlet for less

Answer 53

1. Undertenant may end up as headtenant - headtenant’s lease is forfeited and the undertenant, whose underlease would normally come to an end at the same time, successfully applies to court for relief from forfeiture. OR headtenant’s lease is surrendered, or disclaimed by the headtenant’s liquidator, or if both leases expire and the undertenant exercises their statutory right to stay on in the property and apply for a new lease under the Landlord and Tenant Act 1954, but the headtenant does not 2. undertenant who will be in occupation and who will have physical control of the property. The landlord will have very limited day-to-day control over what is happening at the property as the rights reserved to the landlord, such as inspection and serving notices to repair, will be exercisable by the headtenant and the landlord will have to go through the headtenant to get anything done.

Answer 54

Section 19(1)(a) Landlord and Tenant Act 1927: this implies into any qualified covenant (not to underlet without the landlord’s consent) that it be deemed to be subject to a proviso that such consent is not to be unreasonably withheld Section 1 Landlord and Tenant Act 1988: this means that where there is a fully qualified covenant on underletting (whether the proviso that consent is not to be unreasonably withheld is express or implied by statute) and the tenant has made a written application for consent, the landlord must within a reasonable time: (a) give consent, except in a case where it is reasonable not to give consent (b) serve on the tenant written notice of its decision whether or not to give consent specifying in addition: (i) if the consent is given subject to conditions, those conditions, (ii) if the consent is withheld, the reasons for withholding it. SAME AS ASSIGNMENT Can

Answer 55

* if no provision on advance or arrears rent then arrears * If the lease doesn't start on a specific day there will be apportionment * NEED EXPRESS PROVISION TO REVIEW RENT

Answer 56

1. Fixed increase * provides that, at various set dates throughout the term, the rent will increase to a set amount (eg £30,000 for the first five years, £35,000 for the next five etc) * Certainty, simplicity, hard to predict market 2. Index-linked * rent is linked to an external index, such as the Retail Prices Index. The rationale is that this will allow rent to be altered in line with inflation * Does not track prop market though so may be discrepencies * Usually will have a cap & collar 3. Tenant's recipts * Based on tenants use of property and turnover * gives the landlord an incentive to do all it can to increase the tenant’s trade * DOwnside for landlord if business goes downhill 4. Open market rent review * rent adjusted at intervals (usually every 3 - 5 years) * Reference to open market value of premises at time of review * MOST COMMON

Answer 57

Open market rent review is to determine the rent which a tenant would be prepared to pay *were the property to be let in the open market on the terms of the lease on the rent review date*. 2 elements: 1. Physical property conditions; and 2. Terms of lease. Well drafted rent review class will have assumptions. Common ones below: 1. Willing landlord and tenant 2. Vacant possession 3. SAme terms as lease 4. Unexpired residue of lease (unless F all time left then min amount) 5. Tenant fully obliged with covs inc repair (this stops the tenant benefitting from the fact it has let the property fall into disrepair) 6. If prop damaged - on basis it has been fully restored Common disregards: 1. Alterations and improvements - landlord shouldn't benefit from the improvements the tenant has paid for 2. Effect on rent that tenant has been in occupation - stops LL arguing need to pay inflated premium to avoid hassle of moving 3. Goodwill attached to property due to tenants business (regular flow of customers etc) Often independant determination by RICS

Answer 58

- Landlord had upper hand - Average length of com lease now 5 - 10 years Code binds RICS but voluntary for landlords. The RICS Code for Leasing Business Premises (1 Sept 2020. **Mandatory requirements**: 1. Lease negotiations in constructive and collab manner 2. Party not repped by RICS? Inform them of code & advise they seek advice on it 3. Transaction terms must be recorded in writing subject to contract and must sumarise details as a min: 4. identity and extent of the premises, together with any special rights to be granted ∘ length of term including details of any renewal or break rights ∘ amount of rent, frequency of rent payments and frequency and basis of any rent review ∘ liability for payment of insurance premiums ∘ ability to assign, underlet, charge or share the premises ∘ repairing, permitted use and alterations obligations **Best practice** (need justifiable good reason to depart from) * The identity of the property should be clearly defined, a lease plan should be provided and the tenant should be granted all necessary rights for the intended use of the property * The length of term and any break provisions should be stated * Leases should allow either party to start the rent review process. Tenants should be made aware of the method or formula for review where appropriate to allow time to take professional advice * Leases should contain standard provisions for assignment of whole, underletting of whole or part (where appropriate) charging and sharing with group companies * Repairing obligations should be appropriate to the length of the lease and the condition of the premises * Controls on alterations and change of use should be no more restrictive than are necessary to protect the value of the property and any adjoining or neighbouring premises of the landlord.

Answer 59

Landlord's solicitor usually. Where the lease is an underlease, the scope for negotiating the document will be much more restricted as it is likely that the headlease requires that the terms of the underlease mirrors the terms of the headlease

Answer 60

* Leasehold - common to bypass contract stage & go straight to completion * AFL where there is going to be a delay between agreeing lease and granting it (etc LL constructing prop, refurb works, tenant carrying out works prior to moving in, LL needs consent of lender to grant lease etc) * Landlords lawyer drafts (same as seller drafting contract in freehold transaction) * Should include copy of agreed lease or underlease and require parties to enter on that form on completion. Incumbrances disclosed. Indemnity for future breaches like with freehold included in lease * SC 8.2 - lease/underlease to be in the form annexed to the draft contract, and for the landlord to engross the lease/underlease and supply the tenant with the engrossment at **least five working days before the completion date**

Answer 61

Why must LL lawyer investigate? Before drafting the lease/underlease, the landlord’s solicitor will need to investigate the client’s title to ensure that the client is **entitled to grant it**, to anticipate any **problems** with the title and draft any agreement for lease. Lease: - Tenant will want LL to deduce title to **freehold** interest - If not reg, absence of title will stop leasehold title being absolute! - If reg: tenant will still want to see it to see if they are bound by anything - Law: **tenant not entitled to call for deduction of freehold title unless lease is for MORE THAN 7 years (i,e is a registerable disposition**) - If above is case and there is going to be an **AfL**, SC/SCPC requires the landlord to deduce such title as would enable the tenant to obtain registration with an **absolute title **at the Land Registry. If reg can just look on land reg Underlease: - In the case of an underlease, if the headlease is registered with **absolute leasehold title,** there will be no need to see the title to the freehold - If headlease unreg: (a) law allows undertenant to call for headlease and all subsequent assignments for **last 15 years** (b) can only call for free hold deduction in underlease if transaction for more than 7 years (but not if absolute title). If headtenant didn't call for deduction of freehold then will need to exclude this as special condition. Investigation of title is done in exactly the same way as if the solicitor was acting in a freehold transaction

Answer 62

The landlord’s solicitor should provide the tenant’s solicitor with the following documents: (a) draft agreement for lease (if applicable); (b) draft lease/underlease; (c) evidence of the freehold/headlease title; (d) copies of any relevant planning consents; and (e) evidence of the **lender’s consent** to the grant of the lease/underlease (where relevant) Same searches and enquiries as freehold. Some additional specific ones such as will want to see insurance policy.

Answer 63

* Most head-landlords will require formal consent to the underletting to be given in the form of a licence to underlet. * Entered into by headtenant, undertenant and landlord * Consent must be given by or on completion otherwise headtenant will probs be in berach of alienation cov in lease * Usual condition of consent is undertenant enters direct cov with landlord to perform covs in underlease and headlease (excludes rent under headlease obvs etc). This creates a contractual link between landlord and undertenant so they can sue where usually couldn't. * head-landlord will need to obtain a n**ew direct covenant on each and every assignment of the underlease** from the proposed assignee. * Usually obligation for head-tenant to pay landlords costs of consent

Answer 64

Landlord will receive same docs as freehold but also extra ones. - counterpart lease/underlease executed by the tenant/undertenant - Premium payable for grant if applicable but if deposit on exchange of contracts then deduct obvs - Apportionment LAndlord give to tenant - lease/underlease executed by landlord - MArked or cert copies of freehold title deeds (unreg land) - Cert copy of consent of landlord's lender to transaction Underlease: ensure been given landlord's consent before or on completion. Usually license to underlet.

Answer 65

**SDLT** * chargeable on capital sum (premium) and on rent * For NON RESI (commercial) the premium SDLT is calculated on the same basis as freehold consideration. E.g if premium is £300k calculated in accordance with the SDLT non-resi table * Rent? Formula: (a) Identify **Net Present Value** (B) NPV calc by ref to how muc rent payable over term of lease including VAT (c) for NPV must also discount rental payments to be made in future years by **3.5%** (this compensates for fact that future rent will be worth less than if received today due to inflation!). * SDLT charged on VAT INCLUSIVE figure for rent and premium Net Present Value rates: 1. up to £150k = 0 2. Up to 5 million = 1% 3. Over 5 mil = 2% Remember there are 2 parts to calculating lease SDLT, the premium (which is same as the freehold) and the net premium value of rent (which includes 3.5% less of future payments). **SDLT1 and payment must be submitted to HMRC within 14 days of completion of the grant of the lease.**

Answer 66

* LTT non-resi payable on any premium is calculated on the same basis as for the consideration on the sale of freehold land **EXCEPT** the **0% band for premiums extending to £225,000 is not available where the ‘relevant rent’ exceeds £13,500. ** The rate of **1%** will apply instead. Relevant rent is usually the *highest rent payable in any year across the entire term of the lease* * NPV rates: up to £225k = 0% Up to 2mill - 1% Over 2 mill = 2%

Answer 67

- 7 years or less? If reg land then **Overriding interest** - need not be in actual occupation - CAn reg leases of over 3 years (i.e not parol) against landlord's title VOLUNTARILY - Unreg land: a legal lease is binding on all subsequent owners of the land, irrespective of notice. - Over 7 years? Must register even if freehold isn't - If the freehold is unreg then the registration application is for first reg and must be made in **2 months of grant of lease** - If freehold reg then must confer priority period like with freehold - OSR1

Answer 68

1. Absolute leasehold 2. Possessory leasehold 3. Good leasehold (instead of qualified) Good = Registrar is satisfied that the title to the leasehold interest is sound but, having no access to the superior title, they are not prepared to guarantee the lease against defects in the freehold title or guarantee that the freeholder had the right to grant the lease. Good leasehold title will therefore be given where the t**itle to the freehold reversion is unregistered and the applicant for first registration of the leasehold title does not submit title to the freehold reversion** with the application, or where the **freehold is registered with less than absolute title.**

Answer 69

- Cannot negotiate terms of lease but lawyer still needs to check terms are appropriate - Assignor's responsibility to get consent usually in a lciense to assign - License agreed at completion stage - Landlord probs wants references from current landlord, bank, profressional like lawyer, employer and accounts - Landlord may require a guarantee or AGA - Usually assignor does not pay premium but check lease - Standard conditions: Either party can rescind contract if consent not given in **3 working days** before completion date or if consent by that time is given subject to conditions **buyer reasonably objects to**. Contracts can be exchanged first. Safer not to. - SCPCs: no consent by completion date then completion postponed by **5 working days after assignor notifies buyer that consent has been given** - Cannot be rescined until **6 months** after original completion date has passed. Either can rescind by notice. Bets not to exchange until after cosnent. - Draft licence to assign is produced by the landlord’s solicitor and sent to the assignor’s solicitor who coordinates with the assignee’s solicitor to amend or agree the draft. - If assignor and assignee enter covenants then all 3 will be parties and will need to be in deed

Answer 70

(a) The landlord grants consent to the assignor to assign the lease to the assignee. Often this consent will be time-limited (eg three months) because the landlord has no control over when the assignment takes place and the assignee’s financial position can change in a short time. The landlord would not want to be bound to consent to an assignment if the assignee’s financial position has deteriorated since the references and accounts were checked. (b) If the lease was granted on or after 1 January 1996, the assignor will typically give an authorised guarantee agreement to the landlord (see 8.4.4 below). (c) If the lease was granted before 1 January 1996, a direct covenant by the assignee to the landlord to observe and perform the covenants in the lease for the remainder of the term (see 8.4.3 below). (d) the assignor agrees to pay the landlord’s legal and professional costs.

Answer 71

Old leases (granted before **1 Jan 1996**: - OG tenant liable for duration of lease even if assigned, same goes for the OG landlord (even if assign lease) - privity of contract (but will also have privity of estate whilst lease vested in them - see below) - Assignee will be liable whilst lease is vested in doctrine of privity of estate: (a) Liable if covs touch and concern the land (PA Swift test) - Landlord will want a direct covenant as condition of consent to extend liability to all covenants until end of lease (privity of contract) New lease (granted after 1 Jan 1996) - Assignee liable for all breaches of covenants whilst lease vested in them (not just ones that touch and concern the land) - Assignee auto released from liability upon assignment (LAndlord and Tenant Act (Covenants) 1995 - Direct cov can only be for when actually a tenant. No more privity of contract - Statute allows landlord to require Assignor to enter AGA - Landlord can only pass on its liability if it assigns the leas if it has satisfied the requirements under s6 and 8 of the LTA 1995. However, can contractually state it too.

Answer 72

- If its a new lease the landlord probs wants an AGA on assignment - If pre-condition in lease then **need not be a reasonable request** - if no pre-condition in lease then must be REASONABLE to insist. An AGA will typically contain covenants by the assignor: (a) guaranteeing that the assignee will **perform the tenant’s covenants** in the lease, including the covenao pay rentnt t (b) promising to perform such covenants if the assignee does not (c) indemnifying the landlord for the assignee’s failure to pay rent or to observe the other covenants (d) promising to **take a new lease if the liability of the assignee is disclaimed on insolvency.** The AGA should provide that the assignor’s liability does not extend beyond that of the assignee. If the Assignee assigns teh lease then the Assignor is released from liability.

Answer 73

The assignor’s solicitor should investigate title in the same way as for the purchase of a freehold property. The superior freehold title should be checked as part of this process as well as the leasehold title, as any covenants or easements affecting the freehold will also bind the leasehold interest. Any potential problems should be identified and all relevant incumbrances disclosed in the draft contract. Assignor's lease unreg? assignee is entitled to call for the lease and all assignments under which that lease has been held during the last 15 years, but not for evidence of the freehold title. Without deduction of the freehold title, unless the freehold is already registered with absolute title, the assignee will only obtain a good leasehold title on registration of the lease at the Land Registry following completion. **The provision for deduction of the freehold title must be dealt with by special condition in the contract because neither set of standard conditions require the assignor to deduce the freehold title**. Unlike underletting which you can if underlease is over 7 years.

Answer 74

- Same searches and enquiries as freehold - Request insurance docs and receipt for the last insurance premium paid - Check to see last receip of annual rent to make sure assignor is not in breach as **landlord can enforce breach against assignee** - If only short time left on lease maybe won't bother

Answer 75

* Deed - sometimes called deed of assignment. * In the case of the assignment of a registered lease, **irrespective of how long it has left to run**, the form prescribed under the Land Registration Rules 2003 is a TR1. * Unreg - if over 7 years need to apply for first reg and will be TR1 * The deed of assignment format will always be used for the assignment of a lease for seven years or less as the assignment will not trigger first registration. Covenants: - If assignor sells with full or limited title guarantee it is promising that it has complied with covenants in lease (implied by s4 LP(MP)A - Conflcts with caveat empator - Modify covenants to exclude references to repair covs in both SCCPC and SC - These must be express modifications. - Is this needed for an underlease?

Answer 76

For the assignment of old leases granted before 1 January 1996, an **indemnity covenant from the assignee to the assignor is implied **except where, for unregistered leases, value is not given by the assignee for the transaction. In the latter case, an express indemnity covenant will be inserted into the transfer deed if required by the contract, and this is provided for by both sets of standard conditions. For the assignment of leases granted on or after 1 January 1996, the assignor will usually be automatically released from future liability on the assignment and so will not require an indemnity. However, if the assignor is to remain liable (eg under the terms of an AGA), an express indemnity covenant should be included in the transfer deed. Both sets of standard conditions entitle the assignor to insert an indemnity in such circumstances.

Answer 77

Same as freehold and underletting e.g OS1 / K15 & company seraches if applicable. Give license to assigne and must be deed if assignor/assignee are giving covs (e.g AGA from Assignor or direct cov from assignee) Apportionment SDLT/LTT; Payable on purchase price ONLY (same rates as freehold) need not pay for rent as already paid when lease was granted. Apply for registration at land reg If unreg and over **7 years left at date of transfer deed** apply for first reg in 2 months of completion or legal estate void. To get absolute title must show evidence of superior title or will only get good title. If the freehold is registered the title will be noted against it. If it not **consider loding caustion against first re to protect interest incase someone buys freeold.** Where the lease provides that notice has to be given to a landlord of an assignment (which is a standard provision), the notice should be given in duplicate accompanied by the appropriate fee set out in the lease. The landlord should be asked to sign one copy of the notice as acknowledgement of receipt and return the receipted copy to the sender to be kept with the title deeds. **Notice of assignment**

Answer 78

Old lease was granted pre 1 Jan 1996 - Landlord will look to current tenants and previous tenants and liability is not released: * Sue current tenant in privity of estate * Sue OG tenant in privity of contract * If intervening tenantds entered into a direct cov then them as will through contract New lease: * Not as strong position as auto release from liability on assignment * Assignor probs entered into AGA (although will be release when lease assigned again) - an AGA is a promise by the outgoing tenant that it will be liable for any breaches of the covenants in the lease by the incoming assignee. * May have a guarantor for assignee * CAns ue assignee if still in tenancy * CAnnot sue OG tenant

Answer 79

First identify the type of covenant, covs to pay rent and other covs such as repair are treated differently. With rent cov first check the tenant hs not paid by the due date.

Answer 80

Not paid rent by due date in lease: 1. Debt action - 6years limitation 2. CRAR - landlord can enter and seize goods but only commerical. PRocedure: (a) 7 days notice in writing of intention (b) Must use enforcement agency (c) Can't take goods necessary for the tenant's business (inc computer or phones) up to £1,350. (d) ITems must belong to tenant - no hire purchase (e) IF don't pay then can sell but must be at a **public auction** (f) Must be given 7 **CLEAR** says notice in writing before sale (g) Debt mist be outstanding for 7 days (h) Debt must be possession rent and cannot be for example insurance rent 3. Guarantors - May have guarantor for current tenant - Must be in writing but if indemnity need not be - Old lease, guarantor liekly to be laible for term of the lease - New lease, liability ends when lease assigned - Landlord might be able to get guarantor to guarantee the old tenants obligations under the AGA. Whilst this is not a direct route of recovery it is **indirect**. Check next slide for the procedure. 4. Rent depost - Landlord can requite a rent deposit as security if breach covs generally or breach rent cov. - Usually 6 - 12 months rent - Usually if concerns about payment - Can withdraw for breaches sent ou in **deposit deed** - Will have specified breaches set out in deposit deed and also when it gets sent back such as on assignment - Tenant usually has to top deposit up if gets withdrawn 5. Forfeiture - Bring lease to end unlike other remedies - **LEASE MUST CONTAIN A FORFEITURE CLAUSE** - Details below

Answer 81

s 17 of the Landlord and Tenant ACt 1995: 1. Service a default notice on old tenant or guarantor if landlord intents to cover a 'fixed cahrge' e.g rent, service charge or other liquidated sum 2. Must serve notice within 6months of the breach. If monthly rent and missed last 7 payments but sent no notic,e send it now but only be able to cover 6. Just notifying of claim 3. For old leases and new leases. 4. Person paying be it old tenant or guarantor can gain control by calling for an **overriding lease** i.e a headlease between landlord and defaulting party. They become the landlord!

Answer 82

Procedure (**must have a forfeiture clause to use**) - Usually clause will say landlrod re-enters the premises to forfeit - Not always labelled forfeiture claus,e soemtimes "re-entry" or "provisios" - Common law needs a **formal demand to be made pre forfeiture** but if the lease specifically dispenses witht this then don't need to give one - If lease has forfeiture clause but is silent on making a demand, then a formal demand for payment must be made first - If cannot make **peaceful re-entry** to forfeit, then apply to Court for an order. - Tenant can apply to court for **relief from forefeiture**: (a) IF landlord sues for possession and tenant pays all outstanding arrears and costs before trial then court generally MUST grant relief (b) If apply SIX MONTHS from court order for possession, pay all arrears and costs, Court has a discretion to award relief (c) If landlord forfeits non resi lease without Court order (peaceful re-entry) the SIX MONTH TIME LIMIT DOES NOT APPLY! Court can use its equitable jurisdiction to grant relief - Can waive a right to forfeiture but carry out one of the otehr debt recover options (its amost like affirming a contract and barring termination) - showing an intention to to continue the relationship. E.g **demanding or accepting rent** **If premises let partly or wholly as dwelling, and occupier still lives there, must get a Court order before re-entry - Protection from Eviction Act 1977 -**

Answer 83

This will depend on the nature of the danage and the precise wording of the covenant. 1. Specific performance is availible (consider tests in slide below). 2. Availible for every breach of contract, however, 2 statutes mean the full cost of the repairs cannot be recovered. See slide below. 3. Self-help (Javis v Harris clause): - Most leases include one - Allows landlord to recover the costs of repairs as a debt not damages so avoid the weird stat provisions on damages - Procedure set out on slide below. 4. Forfeiture - Forfeiture for non payment of rent is straightforward. IT is not for other types of cov breaches so make sure you get this. Procedure set out in slide below. 5. Sue Assignor if they have an AGA - a s17 notice is not necessary as this is not a breach of rent payment. The statutory provisions relating to breaches of repair covs i.e 218 LTA 1927, Leasehold Property (Repairs Act) and s146 LPA 1925 make it difficult for a landlord to find efefctive remedy for breach of a repair cov.

Answer 84

*Rainbow Estates Ltd v Tokenhold Ltd [1999]*: Court granted specific performance because: 1. No forfeiture or self help clause; 2. Damages not adequate due to condition of the property deteriorating 3. Landlord not doing to harrass the tent; and 4. In circumstances it was appropriate.

Answer 85

*s18 Landlord and Tenant ACt 1927* Limits damages to the cost of the landlord's revisionary interest devaluing as a result of disrepair (this is technically the landlord's loss?). Devalue in capital may be less than repair!! May not be attractive. *The Leasehold Properties (Repairs) Act 1938* - **NOTICE PROVISIONS** Applies to leases **granted *for or more than* 7 years with three years OR MORE left to run**. Way to remember is more than 7 years makes it a registerable disposition and more than 3 years left means it isn't a parol lease. This act provides a special procedure for claiming damages: 1. Serve a notice (see other slide) and explain tenant's right to counter-notice (Leasehold Properties (repairs) Act) 2. Tenant has **28 days** to serve a counter notice. 3. If a counter notice is served then the landlord must have leave from the Court to proceed any further with proceedings.

Answer 86

1. Landlord can enter premises to check compliance with repair cov 2. If no compliance, landlord must: (a) Serve notice specifying the works that must be done (b) Include a specified period the worsk must be **STARTED** 3. If tenant doesn't start the works in the spec period, or is not **proceeding diligently** with works then: 4. Landlord may enter the premises and carry out the works himself 5. Landlord can then recover cost of carrying out works **AS A DEBT** thereby avoiding weird provisions on damages.

Answer 87

1. Landlord must serve a s146 notice on the tenant which: (a) specifies the breach (b) requires the tenant to remedy the breach **within a reasonable time**if it is capable of a remedy (c) require the tenant to pay compensation for said breach 2. If the tenant does not comply then can forfeit by: (a) peaceful re-entry (b) Court order If let out as a dwelling house and tenant is still in occupation then need a Court Order for forfeiture - Protection from Eviction Act 1977. This is affected by** Leasehold Property (Repairs) Act**. If the lease was **granted for 7 years OR more with 3 years OR more years left to run**, if trying to forfeit for breach of repair cov the landlord must follow these steps: 1. The s146 notice must explain to the tenant he has a right to counter claim in 28 days 2. If the counter-notice is served then need leave of court to continue with forfeiture.

Answer 88

For example: alienation covenants or alterations or change of use. Remedies: 1. Forfeiture if there is a clause - no need for s146 notice to include the right to counter sue (BUT STILL NEED s146 NOTICE! Only don't need it for breach of rent cov). See procedure for under repair cov breach less counter notice. 2. Injunction for breach of a **negative covenant**. Such as a user cov, or anticiapted breach such as assignment in breach of cov. 3. Specific performance - but: (a) positive cov is sufficiently precise (b) damages not adequate remedy (c) supervision over time is not required 4. Damages - nromal contract rules i.e Hadley v Baxendale 5. Pursuing former tenant or guarantor - no need for s17 notice as not a breach of rent cov 6. Deduction for rent deposit deed (check deed to see if can deduct)

Answer 89

Not a remedy in a technical sense - it is a mutual act by landlord and tenant. can be done: (a) Informally - i.e handing keys back; or (b) For commerical probably a **Deed of Surrender** to deal with things like arrears etc, attractive for tenant to terminate obligations. Probs quicker and cheaper for both parties but both must be willing to pursue.

Answer 90

1. Effluxion of time - fixed term leases auto determines at tend 2. Notice to quiet - full period notice or 6 months for 1 year lease (period leases). BUT MUST be at least the length of period, so can be longer, but MUST expire at end of a completed period. - In calculating the notice period, the day on which a notice to quit is served is included but the last day referred to in the notice is not. For example, a notice served on a Tuesday that expires on a Tuesday four weeks later would comply with the four weeks' notice requirement. - For example tenancy (periodic 1 month) started on 1st of month, if want to serve notice on 14 August the EARLIEST notice can expire is 30 Sept. I.e must be at least a motnh and expire at end of month. 3. Surrender - on surrender lease merges with the landlord's revision. Must be deed to be legal. 4. Merger - opposite of surrender where the tenant acquires the landlord's reversion OR where third party accquires lease and reversion. Auto mergre unless third party or tenant preserves the lease in a document.

Answer 91

- Leases under this act don't necessarily get terminated at common law in the same way as leases the act does not apply to - ONLY applies to premises **occupied by the tenant** and used for **business**. Running a hospital and a tennis club counts! What does not have protection of the act: 1. Leases at will 2. Fixed term tenancies not exceeding 6 months, BUT: (a) if a tenant (or a predecessor in the same business) has been in occupation for MORE THAN 12 months when the lease is granted then tenant will gain protection. Even if lease less than 6 months; and (b) If lease is less than 6 motnhs but has a emchanism to extend past 6 months the a1954 act will apply. 3. Agricultural holdings e.g farm business, mining leases etc 4. Fixed term tenancies that are contracted out!

Answer 92

1. Landlord provide notice in a prescribed form that warns the tenant they will be agreeing to a lease **without security of tenure** and **advise to get legal advice**; 2. Tenant follows with a declaration in a prescribed form that: (a) They received notice; and (b) Agree the lease should be contracted out of the 1954 act. (c) IS the notice given **LESS THAN 14 days before the grant of a lease?** Declaration by tenant must be a **statutory declaration before an independant solicitor** - think a bit like an affidavit. (d) A reference to the service of the notice and the declaration **must be contained or endorsed in the lease**.

Answer 93

A lease that falls in the 1954 will not be terminated until terminated in accordance with the act. Even so, the tenanct has a right to apply the the Court for a new tenancy. This can only be opposed by the landlord on one of the 7 statutory grounds (the s30 grounds) The s 30 grounds are set out below: 1) by the service of a landlord’s notice under s 25 2) by the service of a tenant’s request for a new tenancy under s 26 3) forfeiture (normal rules - beware that serving s25 is a bar to forfeiture. so is doing anything that shows landlord's intenton to carry on with lease) 4) surrender (see 10.2.3 above and 9.6) 5) in the case of a periodic tenancy, by the tenant giving the landlord a notice to quit 6) in the case of a fixed-term lease, by the tenant serving three months’ written notice on the landlord under s 27, so long as the notice does not expire before the contractual expiry date 7) in the case of a fixed-term lease, by the tenant ceasing to be in occupation for business purposes at the end of the lease under s 27(1A). The only common law methods preserved are forfeiture and surrender. Effulxion of time if tenant ceases to be in occupation for business purposes at end of lease. Periodic - tenant can serve notice to qut but not landlord. Same with fixed term tenancy. This gives the tenant security of tenure.

Answer 94

Can be used to terminate periodic of fixed tenancy either because opposing a new lease or ending current lease and granting new one. Following procedure must be followed: 1. Serve a s25 notice - slightly different forms if opposing or granting new lease: (a) if granting a new lease then state the grounds (b) if opposing then state the s30 grounds. The s30 notice must include: (a) State the date upon which the landlord wants the tenancy to be terminated. - **cannot be earlier than date of termination under common law**. E.g upon expiry of fixed term. (b) Has to be served **no more than 12 months and no less than 6 months before the termination date.** Need not coincide with the common law date but cannot be before. The extra is called a *continuation tenancy*. 2. If landlord opposes a new lease, tenant must apply to the Court **before the expiry f the s30 notice** or it will lose its rights. Landlord can *pre-empt *the opposal and and **apply for an order to terminate** the lease on the grounds stated in the s25 notice! CANNOT if the tenant has already applied to Court for the lease to be renewed. 3. IF Landlord just want sto grant new lease, parties will enter negotiation. Tenant may issue application to Court for renew anyway to protect posiiton. PArties can agree to extend the time limit to save on Court fees. **Application made to CC**.

Answer 95

1. Tenant wants to terminate lease: 2 ways: (a) Cease to occupy lease for business purposes by end of lease; (b) Serve a s27 Notice giving the landlord **3 months written notice** (c) If want to end aftering contract date then must serve s27 notice with 3 months notice or negotiate a vol surrender. 2. Tenant wants to remain in lease after expiry date? (a) Do nothing and wait and see if landlord serves a s25 (b) Serve a s26 request which brings current tenancy to an end and constitutes a request for new tenancy. (E.g tenant wants lower rent, or wants to assign and thinks new fixed date more attractive to buyer). Same requirements as s25 notice, 6-12 months, accept **state date want new lease to start and proposals**. Landlord can oppose and serve counter-notice stating s 30 grounds. Tenant must then apply to Court nor new lease or they will lose their right. **Application must be made before the proposed new lease start date**. Can agree extension of time between parties. Landlord can preempt and apply for order to terminate lease on grounds in counter-notice. But not if app made by tenant first. Landlord need not serve counter notice if don't object. Tenant should make app before commencement of new lease just incase, but parties can agree this.

Answer 96

If the landlord opposes the renewal of the tenancy, its s 25 notice or counter-notice to a s 26 request must state on which of the seven specified grounds* under s 30 of the 1954 Act it does so. The s 30 grounds are as follows: (a) Tenant's failure to repair (b) Tenant's **PERSISTENT** delay in paying rent (c) Tenant's **SUBSTANTIAL** breach of its other obligations; (d) Landlord has offered alternative accommodation (that is suitable to the tenant's needs and on **reasonable** terms) (e) Tenancy is underletting of part (rare) (f) Landlord intends to demolish or construct property and cannot **reasonably** do so with tenant in building (g) Landlor intends to occupy premises for his own business purposes or residence.

Answer 97

(a) Tenanct's failure to repair, (b) persistent delay in paying rent, (c) substantial breach of other obligations and (d) tenancy is underletting of party. The above grounds are discretionary, there the landlord not only has to establish they ground, he must **show the tenant not ought to be granted a new tenancy in view of the facts giving rise to the ground**. As they are discretionary, opposed apps will be expensive as Court will need hearing with evidence, submissions by advocates etc.

Answer 98

(d) Landlord offered alternative accomo suitable and reasonable offer (f) Landlord intends to demolish or reconstruct (g) Landlord intends to occupy for own use. Landlord only needs to prove ground exists.

Answer 99

Ground (f) construction / demo. The landlord must shwo that on termination of the tenancy: (a) firm and settled plan to carry out work (e.g planning permission in place, financial arrangements in place); (b) Intends to demolish or preconstruct premises or a **substantial** part of them, or to carry out **substantial works of construction** on the holding (bit of prop lease is) or part of it. (c) cannot reasonably carry out without obtaining possession. (will fail if tenant agrees to allow landlord access to carry otu work, which can then be reasonably carried out without obtaining possession and withotu susbtantially interferring with tenant's use).

Answer 100

1. Landlord **owned** revisionary interest for at least **5 years before ending of current tenancy**. Stops landlords buying a lease with less than 5 years and getting possession cheap. 2. Landlord can, however, buy a property with vacant possession, lease it for less than 5 years, then rely on this ground. 3. Landlord must show a firm and settled intention and must demonstrate on date of court hearing it has **considered and taken practical steps to occupy the property**. 4. Must have a **reasonably prospect of achieving its intention** but need not show its business will be a success in that location.

Answer 101

- Tenant only entitled to the holidng i.e the bit of prop have lease for i.e any parts tenant has undelet not considered. - Landlord can **insist a new tenancy is tenancy of whole including the parts underlet** - TErms of new elase will be **such as is reasonable in the circumstances** - LEase cannot exceed **15 years** but will usually be much less, say 5 or 7 - Will start **3 months** after proceedings fully disposed of, e.g needs to be after appeal deadline expired i.e **3 months and 3 weeks after** Open market RENT, when Court assesses will NOT take into account: 1. The fact tenant and predecessors have been in occupation 2. Good will 3. Improvements voluntaril carried out 4. Licensed ? Any addition to value the license makes. Above is similar to rent review. Court can insert rent review even if there wasn't one. Otehr terms will be fixed by the Court in the absence of agreeement. Likely to be same as the old. Tenant can apply for the order t be revoked if it doesn't like the terms. Landlord cannot and can only appeal!

Answer 102

If landlrod opposes leases on no fault grounds i.e (e) - underlet in part - (f) or (g), and wins, no lease but can get comp. Comp will be: 1. Rateable value of the holding 2. If Tenant (or predecessors in same business) in occupation for **at least 14 years** will be 2 x the rateable holding 3. Cannot exclude this in the contract if the tenant has been in occupation for **5 years OR MORE**.

Property Practice Flashcards

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