SOT

Question 1

What is the key benefit of SOT?

Answer 1

Right to hold over beyond contractual term. Therefore, there are only certain circumstances that can end SOT

Question 2

Who qualifies for SOT? (3 requirements)

Answer 2

1. tenancy
2. occupier
3. business purposes

Question 3

What happens to rent during the hold over? It stops unless…(3) Can the landlord increase the rent?

Answer 3

1. It stops unless either party applies for an interim rent (can be lower rent) or parties can negotiate a rent or lease already provides for it
2. No. Not until the lease is renewed

Question 4

What documents are needed to contract out SOT? (2) Where should these documents be referenced? What type of landlord must you be to do this?

Answer 4

1. landlord serves s146 warning notice before granting lease
2. tenant provides declaration

a. simple: lease completion is at least 14 days from warning notice

b. statutory: lease completion is less than 14 days from warning notice (requires independent solicitor)

3. in the lease
4. competent landlord: at least 14 months left on reversionary interest