Property (9)
Terms
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- If the term of a lease is specified to run for 10 years 'from and including' X, what day would the lease start?
- The lease would start on X and end the date before X in 10 years' time.
- If the term of a lease is specified to run for 10 years 'from' X, what day would the lease start?
- The date AFTER X and therefore the lease would end on the same date as X in 10 years' time.
- What is security of tenure?
- This is an automatic right to renew a lease following the expiry of the contractual term?
- How might a tenant get 'security of tenure'?
- A commercial lease may carry the protection of the Landlord and Tenant Act 1954
- What does Recommendation 3 of the Code for Leasing Business Premises state regarding break clauses?
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The only pre-conditions to a tenant exercising a break clause should be:
(1) Up to date with rent;
(2) Give up occupation; and
(3) Don't leave any subleases. - What are the usual quarter days?
- 25 March, 24 June, 29 September and 25 December.
- How might a landlord wish to record its consent to alterations?
- By the parties entering into a Licence for Alternations
- What is a Absolute covenant?
- The Tenant shall not do X
- What is a qualified covenant?
- The Tenant shall not do X without the Landlord's consent
- What is a fully qualified covenant?
- The Tenant shall not do X without the Landlord's consent, such consent not to be unreasonably withheld or delayed.
- S. 19(2) Landlord and Tenant Act 1927
- This section implies into a qualified covenant that the landlord's consent is not to be unreasonably withheld (i.e. it converts a qualified covenant into a fully qualified covenant).
- This section implies into a qualified covenant that the landlord's consent is not to be unreasonably withheld (i.e. it converts a qualified covenant into a fully qualified covenant).
- S. 19(2) Landlord and Tenant Act 1927
- 'Improvements' are to be construed widely as works to improve the premises from the tenant's perspective
- Lambert v FW Woolworth & Co Limited
- Lambert v FW Woolworth & Co Limited
- 'Improvements' are to be construed widely as works to improve the premises from the tenant's perspective
- A landlord's decision to withhold consent will be reasonable if there are serious concerns as to the potential consequences to the structure of the building.
- Iqbal v Thakrar
- Iqbal v Thakrar
- A landlord's decision to withhold consent will be reasonable if there are serious concerns as to the potential consequences to the structure of the building.
- What can a landlord require as a condition to his giving consent under s. 19(2) LTA 1927?
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(1) Compensation for loss in value to the reversion caused by the alterations;
(2) Reinstatement of the premises (at end of lease); and
(3) Payment of the landlord's expenses in giving consent. - Does s. 1 LTA 1988 (which imposes a duty on a landlord to consent within a reasonable time) apply to a request to make alterations?
- No, it only applies to requests for consent to sublet or assign.
- Do any statutes intervene in the landlord's control even in the fact of absolute covenants?
- Yes, such as the Fire Precautions Act 1971 and Equality Act 2010
- Can a landlord consent to an alteration even if there is an absolute covenant in a lease?
- Yes, one-off consents can be givne.
- What is a 'keep open' clause and when is it likely to be used
- Usually found in the context of a property's use, 'To use as X'.
- What is a better way to achieve the intended result of a 'keep open' clause?
- 'Not to use other than as'
- s. 19(3) Landlord and Tenant Act 1927
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(1) This section does not imply reasonableness into qualified user covenants.
(2) This section prevents the landlord from charging for giving consent
(3) Unless the change of use involves altering the property, in which case a premium is payable. - Can a landlord still recover its surveyor's and legal fees under s. 19(3) LTA 1927?
- Yes.
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(1) This section does not imply reasonableness into qualified user covenants.
(2) This section prevents the landlord from charging for giving consent
(3) Unless the change of use involves altering the property, in which case a premium is payable.< - s. 19(3) Landlord and Tenant Act 1927
- What is required for the purpose of alterations that are outside the demise of the lease, i.e. not part of the property subject to the lease into which the tenant has entered?
- A deed of variation would be needed to give effect to this change.
- What does a deed of variation operate as?
- A surrender and re-grant of the lease (as it changes the extent of the premises). This would have SDLT consequences.
- Instead of entering into a deed of variation, what could the parties do instead?
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(1) Grant a separate lease of the additional land;
(2) on the same terms as the current lease and for a contemporaneous term of years;
(3). The SDLT liability should be lower.