Unit 5 Prop

Question 1

Land Law - Leases

When may equity intervene to recognise an equitable lease?

What is required for equity to recognise the arrangement?

Answer 1

• Where there is a contract to create/transfer a legal estate; or
• where there is a attempt to use a deed but the deed is not valid.

A contract, complying with s2 LPMPA 1989, and clean hands.

Question 1

Land Law - Leases

When is a deed required to create a lease?

Answer 1

Required to create a legal lease unless a parol lease.

Question 2

Land Law - Leases

What equitable right will be created by a contract to transfer an existing legal estate?

Answer 2

An estate contract.

Question 3

Land Law - Leases

What are the essential characteristics of a lease?

What has been created where 1 or more of the essential characteristics of a lease is missing?

Answer 3

• must be for a duration permitted for a leasehold estate
• must give exclusive possession
• grant must have correct formalities

A licence.

Question 4

Land Law - Leases

How is a licence different from a lease?

Answer 4

• Creates a personal right not a proprietary right
• Cannot be assigned and a new licence is required if the identity of the parties changes
• Licensees in occupation do not benefit from statutory protection

Question 5

Land Law - Leases

What will be created in an attempt to create a lease for life?

Answer 5

A lease for a term of 90 years which ends on the death of the tenant.

Question 6

Land Law - Leases

What is a break clause?

Answer 6

A contractual right to bring a fixed term lease to a premature end.

Question 7

Land Law - Leases

What are the features of exclusive possession?

Does the landowner retaining a key negate exclusive possession?

Answer 7

• The tenant may exclude all, including the landlord, from the land; and
• the tenant does not need to be in occupation to enjoy exclusive possession.

No, it does not.

Question 8

Land Law - Leases

Does service occupancy create a licence or lease?

Answer 8

A licence.

Question 9

Land Law - Leases

(Drafting) What are the key lease covenants?

In the absence of an express obligation, which covenants will be implied on the part of the landlord to include?

Answer 9

Tenant’s covenants:
- rent
- contribution to insurance
- repair
- alterations
- alienation

Landlord’s covenants
- quiet enjoyment
- insurance

Implied in the absence of an express obligation:
- quiet enjoyment; and
- obligations in respect of fitness of the property.

Question 10

Land Law - Leases

What are the landlord’s obligations in respect of fitness of the property?

When will a landlord be liable for obligations in respect of fitness of the property?

Answer 10

• Keep in repair the structure and exterior of the dwelling house;
• keep in repair and proper working order the installations for the supply of water, gas, electricity and sanitation; and
• keep in repair and proper working order the installations for space heating and water heating.

Only liable if there is disrepair and once such disrepair has been notified to them.

Question 11

Land Law - Leases

What is alienation? How may a tenant exercise alienation?

What is assignment?

Answer 11

Alienation - disposal of the existing (and remaining) leasehold estate by the tenant.
- assignment;
- sub-lease;
- mortgage/charge;
- parting with possession/occupation

Assignment - the tenant passes all of their interest under the lease to a new tenant and steps out of the picture.

Question 12

Land Law - Leases

What does it mean if the lease does not contain a covenant against alienation?

Answer 12

The tenant has complete freedom to deal with the lease as they wish.

Question 13

Land Law - Leases

Qualified vs Fully Qualified Covenants (Assignment context)?

Answer 13

Qualified - the covenant by the tenant is not to assigned without the landlord’s consent

Fully qualified - covenant not to assign the lease without the landlord’s consent, which cannot be unreasonably withheld

Question 14

Land Law - Leases

What is the effect of s19 Landlord and Tenant Act (LTA) 1927?

When does it impose obligations on the landlord?

Answer 14

Translates any qualified covenant (against assignment, underletting, charging or parting with possession) into a fully qualified covenant so that the landlord cannot unreasonably withhold consent.

Imposes obligations on the landlord where the landlord has received a written application:
- to give consent (unless reasonable not to do so);
- to give written notice of their decision (including any conditions); and
- where consent is withheld, written reasons for refusal.

Question 15

Land Law - Leases

What does s19(1A) LTA 1927 enable the original landlord and tenant of a NON-RESIDENTIAL lease (granted after 1 Jan 1996) to agree in advance?

Answer 15

• Circumstances in which the landlord may withhold its consent to an assignment; and
• conditions subject to which any consent to assign will be subject.

The most popular condition is for the former tenant to provide the landlord with an AGA as a condition of the landlord giving its consent to any assignment.

Question 16

Land Law - Leases

Old vs New Leases?

Answer 16

Old leases - created before 1 Jan 1996
New leases - created after 1 Jan 1996

Question 17

Land Law - Leases

What is the liability of the original tenant under an old lease?

Liability of the assignee under an old lease?

Who can the landlord pursue if the assignee defaults? What if a landlord sells to a new landlord?

Answer 17

ORIGINAL TENANT:
There is a relationship if privity of contract between the original tenant and the original landlord.
- T1’s contractual liability lasts for the duration of the lease (even after assignment).

ASSIGNEE:
When the original tenant assigns the lease to an assignee, there is a relationship of privity of estate between the landlord and T2.
- T2 is liable for breaches of all real covenants (those which touch and concern the land (positive and negative)).
- T2 only liable under privity of estate for the duration that the lease is vested in them.

The landlord can pursue T1 (via privity of contract), T2 (via privity of estate) or both of them.
The new landlord can pursue either, as they have the benefits and burdens of the landlord’s covenants whilst the reversion is vested in them.

Question 18

Land Law - Leases

OLD LEASE - if the original tenant is sued as a result of a breach they did not commit, what action can they take?

Answer 18

• At common law - against the tenant in possession at the time of the breach - may seek to recover the amount they have paid from the person whose liability they discharged;
• On indemnity covenant (contained in deed of assignment) against the person whom they assigned the lease; or
• In absence of express indemnity covenant, will be implied into any assignment of value.

Question 19

Land Law - Leases

What is the position of the tenants under a new lease? Original and assignee?

What is the position of the original landlord? The new landlord, upon sale of the reversion?
How can an outgoing landlord be released?

Who can a tenant pursue?

Answer 19

Tenants are only bound by the covenants in the lease whilst the lease is vested in them. On assignment, all the covenants pass to the assignee unless expressed to be personal (does not matter if they touch and concern the land) AND the assigning tenant is automatically released from any liability.

The new landlord takes the burden and benefit of the covenants, provided not expressed to be personal (do not need to touch and concern the land).
The outgoing landlord is not automatically released.
Must follow the criteria in ss6 and 8 LT(C)A to be released from landlord covenants. Alternatively, landlord can limit their liability by stating in the lease that their liability ends once they have disposed of the reversion.

If former landlord not released, the tenant can pursue either the former landlord, new landlord, or both.

Question 20

Land Law - Leases

What is the position of the landlord under a new lease?

When is the outgoing landlord released following an assignment of the reversion?

What happens if not released? Effect?

How can a landlord limit their liability?

Answer 20

The new landlord takes the burden of the landlord covenants and acquires the benefit of tenant covenants (they do not need to touch and concern the land).

The outgoing landlord is not automatically released following an assignment of the reversion.
Has to follow the criteria in ss6 and 8 LT(C)A 1995 to obtain a release from the landlord covenants.

If release is not obtained, the outgoing landlord remains liable on the landlord covenants. Means the tenant will have a choice of pursuing the former landlord, new landlord or both.

Can limit their liability by stating in the lease that their liability ends once they have disposed of the reversion.

Question 21

Land Law - Leases

When can a landlord require an AGA?

Answer 21

Only where:
- the lease contains a covenant against alienation without the landlord’s consent; and
- it is either reasonable to do so or, in the case of a commercial lease, it is a condition of the landlord giving consent.

Question 22

Land Law - Leases

A former tenant who suffers loss due to liability under an AGA as a consequence of the default of an assignee may recover how?

Are indemnity covenants implied on every assignment of new leases?

Answer 22

• from the assignee on the basis of the principle in Moule v Garrett (at common law against the tenant in possession); or
• more commonly, on the basis of an express indemnity given by the immediate assignee.

Unlike old leases, indemnity covenants are not implied on every assignment.

Question 23

Land Law - Leases

What must the landlord do before pursuing a former tenant for the payment of rent?

What happens if they don’t?

What happens if the former tenant pays in full?

Does this apply to new and old leases?

Answer 23

They must serve a default notice on the former tenant within 6 calendar months of the fixed charge falling due.

If the landlord fails to serve a default notice, they cannot recover the fixed charge from the former tenant.

If the former tenant pays the sum demanded in full, the former tenant can request an overriding lease from the landlord.

Applies to both new and old leases.

Question 24

Land Law - Leases What is an overriding lease? Effect?

Answer 24

* the same duration as the original lease but less 3 days; * on the same terms as the original lease; and * granted by the landlord to the former tenant. The former tenant becomes the landlord to the defaulting assignee, but it obliged to pay rent to the landlord and comply with the tenant covenants in the same way as the original lease.

Question 25

Land Law - Leases What remedies are available to the landlord for non-payment of rent?

Answer 25

* debt action * commercial rent arrears recovery (CRAR) * forfeiture

Question 26

Land Law - Leases (Landlord's remedies for non-payment of rent) Does a debt action bring the lease to an end? What is the time limit for a debt action? What may claiming a debt action waive?

Answer 26

No. 6 years from the date on which the arrears became due. May waive the right for the landlord to forfeit,

Question 27

Land Law - Leases Against which tenant is CRAR available? What does it consist of? Conditions? Does it bring the lease to an end? Can the tenant challenge the warning?

Answer 27

The tenant in possession. Consists of the landlord entering the premises in order to seize the tenant's goods and sell them. The arrears of rent are paid off from the proceeds of sale. - Can only be used to recover normal rent; - the rent due must exceed a minimum of 7 days' rent; - the landlord must give the tenant a minimum of 7 days' notice of their intention to take control of the tenant's goods; and - only an enforcement agent may take control of the tenant's goods. Does not bring the lease to an end. The tenant may challenge the landlord's warning notice in court.

Question 28

Land Law - Leases What is forfeiture? When can the right to forfeit be exercised? What is waiver? How may waiver of the right to forfeit be expressed? What are the methods of forfeiture? Can it be exercised by force? When will the landlord need a court order to exercise forfeiture?

Answer 28

The right for a landlord to retake physical possession of the premises thereby prematurely terminating the lease. It must be expressly reserved by the lease. The landlord may lose the right to forfeit in respect of that breach if by their conduct they are deemed to have waived it. Waiver may be express or limited. The landlord may forfeit by either: - peacefully re-entering the premises; or - by suing for and obtaining a possession order in the courts. No, its a criminal offence to repossess any premises by force. Where the premises are let wholly or partly as a dwelling and the occupier continues to reside at the premises.

Question 29

Land Law - Leases How may the tenant seek relief from forfeiture?

Answer 29

* If the landlord sues for possession and the tenant pays all the arrears of the rent and costs before trial, court must genuinely grant relief; * the tenant can also apply to the court for relief within 6 months of the landlord's re-entry pursuant to a court order - relief will be at the discretion of the court; * if the landlord forfeits a non-residential lease by re-entry without court proceedings, the 6 month time limit does not apply and the court can exercise inherent equitable jx to grant relief.

Question 30

Land Law - Leases What are the landlord's remedies for breach of other covenants? Which bring the lease to an end?

Answer 30

* Damages * Specific performance * Forfeiture * Self-help remedy Forfeiture brings the lease to an end.

Question 31

Land Law - Leases (Landlord's remedies for breach of other covenants) Who may damages be claimed against? What notice must the landlord serve if the lease has 3 or more years unexpired? What must it include? How long does the tenant have to serve a counter notice?

Answer 31

The tenant in possession, a former tenant (privity of contract/AGA) or both. If the landlord has 3 or more years unexpired, the landlord must first serve on the tenant a s146 LPA 1925 notice. - Such notice must include a statement to the effect that the tenant is entitled to serve a counter notice. The tenant has 28 days to serve a counter notice and if served, the landlord cannot take further actions without the leave of the court.

Question 32

Land Law - Leases (Landlord's remedies for breach of other covenants) What must the landlord serve before they can forfeit? Which breaches are not capable of remedy? What happens if the tenant remedies the breach within the specified period?

Answer 32

Must generally serve a notice against the tenant under s146 LPA 1925: - specifying the breach; - requiring it to be remedies within a reasonable time, if capable of remedy; and - requiring compensation is desired. Breach of a covenant against alienation is not capable of remedy. There can be no forfeiture.

Question 33

Land Law - Leases What happens to a sub-lease if the head lease is forfeited? Effect?

Answer 33

Will cease to exist - subtenant can apply for relief against forfeiture of the head lease. The court will vest the head lease in the sub-lessee.

Question 34

Land Law - Leases When does the self-help remedy apply? The lease must contain a provision that allows the landlord to?

Answer 34

For landlords in relation to a breach of the tenant's covenant to repair. Must contain a provision that allows a landlord to: - enter and inspect the property; - give the tenant notice that repair is required and a time period for the tenant to undertake the repairs; - if the tenant does not complete the work the landlord can enter the property and do the work; and - the landlord can recover the cost of the work as a debt due from the tenant thus: avoiding the provisions of s18 of the LP(R)A Act 1938.

Question 35

Land Law - Leases What are the tenant's remedies for breach of a landlord covenant?

Answer 35

* Specific performance/injunction * Damages * Self-help

Question 36

Land Law - Leases How does the remedy of self-help apply as a tenant's remedy for breach of a landlord covenant?

Answer 36

The tenant may notify the landlord that the repair is needed and that they will carry out the repair if the landlord fails to do so. If the tenant then carries out the repairs, they may withhold rent until the ascertained cost of repair has been repaid.

Question 37

Land Law - Leases In wha ways may leases be brought to an end?

Answer 37

* effluxion of time * notice to quit * break clause * surrender * disclaimer * frustration * repudiatory breach * merger * forfeiture

Question 38

Land Law - Leases What is the general rule for notice to quit? What if the premises are wholly or partly let as a dwelling house and the tenant is in occupation.

Answer 38

One full period's notice is required. Then not less than 4 weeks' notice must be given.

Question 39

Land Law - Leases Outline surrender (determination of lease). Does surrender terminate the interests of sub-tenants?

Answer 39

Requires landlord and tenant to mutually agree for the tenant's estate to be yielded up to the landlord. No, does not terminate the interest of a sub-tenant.

Question 40

Land Law - Leases When does disclaimer arise (determination of lease)? Who can disclaim contracts? Effect? Does it affect sub-tenants?

Answer 40

Arises upon the bankruptcy/liquidation of the tenant. The trustee in bankruptcy/liquidator can disclaim contracts which gives rise to a liability to pay money or perform any onerous act. Does not end any sub-tenancy.

Question 41

Property Practice - Structure and Content of a Lease Drafting - Which leases must contain prescribed clauses? Where can they be found? What are they?

Answer 41

Leases dated on/after 19 June 2006 which are granted out of registered land and are compulsorily registrable must contain a standard set of clauses (prescribed clauses). At the beginning of the lease, or immediately after any front cover sheet and/or front page. A summary of the important details in the lease and bring together all the information that the Land Registry needs in order to complete registration.

Question 42

Property Practice - Structure and Content of a Lease Drafting - What is the structure of a typical commercial lease?

Answer 42

1. Prescribed clauses 2. Commencement 3. Interpretation 4. Grant of the lease 5. Ancillary rights 6. Rights excepted and reserved 7. Annual rent 8. Rent review 9. Tenant's covenants 10. Landlord's covenants 11. Landlord's rights to enter on breach of repair covenant 12. Re-entry and forfeiture

Question 43

Property Practice - Structure and Content of a Lease (Drafting) (Commencement clause) What does the lease start with? What are ancillary rights? What are rights excepted and reserved?

Answer 43

The lease starts with the words 'This Lease', followed by the date of its grant and the names and addresses of the parties. Where created out of a registered title, document will carry usual land registry hearing (county and district, landlord's title number, brief description of the property, and date) at top of first page. Give the tenant rights over other land to enable them to use the leased property more effectively (eg right to use roads). Rights in favour of the landlord over leased property.

Question 44

Property Practice - Structure and Content of a Lease What is a full repairing and insuring lease?

Answer 44

The landlord gets a clear rental stream (all profit) and does not have to dip into it to pay for repairs, maintenance, and insurance contributions.

Question 45

Property Practice - Structure and Content of a Lease What must be present before a tenant can be in breach of a covenant to repair? Are works of renewal/improvement part of repair? What is repair? What does a covenant to keep a building in repair mean?

Answer 45

Disrepair. No, they go beyond repair. Repair is restoration by renewal/replacement of parts of a whole. Means to put it into repair, even if that involves the tenant putting the building into a better state of repair than when they entered the lease.

Question 46

Property Practice - Structure and Content of a Lease To what value should the property be insured?

Answer 46

Full reinstatement value, otherwise if the property is totally destroyed there won't be enough money to pay for rebuilding.

Question 47

Property Practice - Structure and Content of a Lease What is the rent suspension covenant? What happens if its not included?

Answer 47

Provides for the payment of rent to be suspended during any period that the property cannot be occupied following damage by an insured risk. In the absence of an express term to the contrary, rent will continue to be payable even if the property is rendered unusable.

Question 48

Property Practice - Structure and Content of a Lease Does the doctrine of frustration apply automatically if the building is totally destroyed?

Answer 48

No, will only appear in exceptional circumstances. Both parties will want their right to be included, otherwise will be paying rent for property they can't use.

Question 49

Property Practice - Structure and Content of a Lease ABSOLUTE COVENANTS Against which alterations can a landlord impose an absolute covenant? What can a tenant of business premises use to enable them to carry out improvements, even when the lease contains an absolute prohibition? How does it operate? Alternative option for the landlord, instead of objecting/consenting to the works? What happens if the tenant does not accept? What if the landlord does not offer the alternative or object to the improvements within the time limit?

Answer 49

Against all types. s3 Landlord and Tenant Act 1927 - a tenant who wants to carry out improvements can serve a notice on the landlord detailing its proposals. - The landlord then has 3 months within which to object and if it does, the tenant has the right to apply to the court for authorisation to carry out the improvements. - The court can authorise the improvements if they add to the letting value of the property, are reasonable and suitable to the character of the property and do not diminish the value of any other property of the landlord. A landlord can offer to carry out the works itself in return for a reasonable increase in the rent. - If the tenant rejects, the landlord has no right to carry out the works and increase the rent + the court cannot give the tenant authority to do the works itself. Then the tenant may lawfully carry them out, even if the lease contains an absolute covenant.

Question 50

Property Practice - Structure and Content of a Lease QUALIFIED AND FULLY QUALIFIED COVENANTS Under s19(2) Landlord and Tenant Act 1927, what happens to qualified covenants against alterations? What constitutes an improvement?

Answer 50

They are implied into a qualified covenant against making improvements that the landlord cannot unreasonably withhold its consent. Improvement - if the works in question will increase the value or usefulness of the property to the tenant, even if they will result in the reduction in the value of the landlord's reversionary interest.

Question 51

Property Practice - Structure and Content of a Lease What is a tenant who obtained prior authorisation to make improvements under s3 LTA 2927 entitled to claim? Are these covenants commonly used? Is there a statutory implicant that the landlord's consent cannot be unreasonably withheld (alteration covenants)? Limitations on the conditions the landlord can apply?

Answer 51

Compensation for improvements at the end of the term that add to the letting value of the holding. Rarely used - most leases remove. No, unlike alienation covenants, there is no statutory implication that the landlord's consent cannot be unreasonably withheld for user covenants, but the landlord cannot charge a find/increased rent as a condition of giving consent.

Question 52

Property Practice - Structure and Content of a Lease Who is bound by the RICS Code? Result of failure? What are the requirements?

Answer 52

Members of the Royal Institute of Chartered Surveyors. Failure to observe the RICS Code will support a negligence claim against the surveyor and may lead to a disciplinary action. Requirements: 1. lease negotiations must be approached in a constructive and collaborative manner 2. any party not represented by an RICS member or other property professional must be advised of the existence of the code and must be recommended to obtain professional advice 3. transaction terms must be recorded in writing, subject to contract and must summarise specified details as a minimum.

Question 53

Property Practice - Procedural Steps for the Grant of a Lease or Underlease Under the general law, is a tenant entitled to call for deduction of title of the freehold title? When is the landlord required to deduce title under the SC and SCPC? What if the headlease is unregistered?

Answer 53

Not unless the transaction is the grant of a lease for a term of more than 7 yrs. Where this is the case and there is no agreement for lease, the SC and SCPC require the landlord to deduce such title as would enable the tenant to obtain registration with an absolute title at the Land Registry. If the headlease is unregistered: - general law entitled the

Question 54

Property Practice - Procedural Steps for the Grant of a Lease or Underlease Where the headlease is unregistered, what is the general law regarding calling for the headlease? For deduction of freehold title?

Answer 54

Entitles the undertenant to call for the headlease and all subsequent assignments which the headlease has been held for the last 15 yrs. Under the general law, the undertenant is only entitled to call for deduction fo the freehold title where the transaction is the grant of a lease for a term of more than 7 yrs.

Question 55

Property Practice - Procedural Steps for the Grant of a Lease or Underlease When is the head-landlord's consent required for an underletting? What happens if not given by then? What will the head-leandlord need to directly sue the undertenant?

Answer 55

Must be given by or on completion of undertaking, otherwise the headlease is likely to be in breach of the alienation covenant in the lease. A direct covenant.

Question 56

Property Practice - Procedural Steps for the Grant of a Lease or Underlease When must a land transaction return be submitted to HMRC? Chargeable on what? In relation to the rental element, what figure is used to calculate the SDLT? How is it calculated?

Answer 56

Completion - on the grant of a lease in the usual way. Potentially chargeable both on any capital sum being paid (referred to on grant of lease as a premium) and on the amount of the rent (vat inclusive for both). Net Present Value (NPV) - consists of working out how much rent payable in total over term of lease (including VAT) and then discounting rental payments to be made in future yrs by 3.5% per annum.

Question 57

Property Practice - Procedural Steps for the Grant of a Lease or Underlease How is SDLT chargeable on the NPV? When is it payable?

Answer 57

£0 - £150,000 - 0% £150,001 - £5,000,000 - 1% above £5,000,000 - 2% SDLT1 and payment must be submitted to HMRC within 14 days of completion of grant of lease.

Question 58

Property Practice - Procedural Steps for the Grant of a Lease or Underlease How is LTT chargeable on the NPV? When is it payable?

Answer 58

£0 - £225,000 - 0% £225,000 - £2,000,000 - 1% above £2,000,000 - 2% Return and payment must be submitted to the Welsh Revenue Authority within 30 days of completion of the grant of the lease.

Question 59

Property Practice - Procedural Steps for the Grant of a Lease or Underlease When is a lease capable of being registered with its own title at the Land Registry? In registered land, how will leases non-registerable leases take effect? Unregistered land? If freehold is unregistered, when must tenant's application to the Land Reg for first reg be made?

Answer 59

For more than 7 years (irrespective of freehold registration). In registered land - leases for 7 yrs or less will take effect as an overriding interest. In unregistered land - leases for 7 yrs or less, are binding on all subsequent owners irrespective of notice. Within 2 months of completion of the grant of the lease.

Question 60

Property Practice - Lease Termination and Security of Tenure under a Business Lease Methods of termination of lease at common law?

Answer 60

* Effluxion of time (fixed term tenancies) * Notice to quit (periodic tenancies) * Surrender

Question 61

Property Practice - Lease Termination and Security of Tenure under a Business Lease When does the 1954 Act apply? Effect? Which types of business tenancy are not protected? Outline the process of contracting out of the 1954 Act.

Answer 61

There must be a tenancy of a property which is occupied by the tenant for business purposes. Protected tenancy may continue until it is terminated in accordance with the provisions of the act and even then the tenant has a right to apply for a new tenancy which can only be opposed by one of 7 statutory grounds contained in s30. Not protected: - tenancies at will, which can be terminated at any time by either party - fixed term tenancies not exceeding 6 months (does not count if contains provision allowing renewal/extension of term beyond 6m) - fixed term tenancies that are contracted out of the act (a) The landlord must give the tenant notice in a prescribed form warning the tenant that they are agreeing to a lease without security of tenure and advising them to obtain professional advice. (b) The tenant must then make a declaration in a prescribed form warning the tenant that they have received the notice and agree that the lease should be contracted out. (c) If the tenant is given the notice less than 14 days before the grant of the lease, the tenant's declaration must be made in the form of a statutory declaration before an independent solicitor.

Question 62

Property Practice - Lease Termination and Security of Tenure under a Business Lease What are the seven methods of termination provided by s30 of the 1954 act? What happens in the case of a periodic tenancy?

Answer 62

1. by service of a landlord's notice under s25 2. by service of a tenant's request for a new tenancy under s26 3. forfeiture 4. surrender 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 giving 3 months' written notice on the landlord under s27, 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. In the case of a periodic tenancy, the 1954 Act allows the tenant to serve a notice to quit on the landlord, but the landlord cannot serve notice to quit on the tenant.

Question 63

Property Practice - Lease Termination and Security of Tenure under a Business Lease s25 notice, the 1954 Act - which leases can it terminate? When must the landlord serve the notice? What must it include? If the landlord opposes the renewal of the tenancy? Limitation on the end date? When must the notice be served?

Answer 63

Can be used to terminate either fixed term or periodic lease. The landlord must serve a s25 notice on the tenant, regardless of whether it wants to the property back or wants to grant a new lease. The landlord must indicate its proposals as to the terms of the new lease in the notice. - Must state the date upon which the landlord wants the tenancy to end; and - indication of proposals as to the terms of the new lease. - If the landlord opposes the renewal of the tenancy - the s25 notice must state the s30 grounds. Date upon which the landlord wants the tenancy to end cannot be earlier than the date the tenancy could have been terminated under the common law. Has to be served no less than 6 months and no more than 12 months before the termination date specified in the notice.