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Q&As
This Q&A appears to involve an undisclosed principal; that is, a principal who is not known by the third party to be connected with a particular transaction made between the third party and the principal’s agent. As between that principal and the agent: • they should have agreed to the existence of an agency relationship, and • in entering into the contract with the third party, the agent must have intended to do so on the principal’s behalf For the purpose of this Q&A it is assumed that: • the tenant did not know of B’s connection with the tenancy (although the payment
Q&As
By section 213 of the Housing Act 2004 (HA 2004) (as amended) any person receiving a tenancy deposit must deal with it in accordance with an authorised scheme and the initial requirements of the scheme must be complied with within 30 days of receipt and the prescribed information be provided to the tenant within the same period. A failure to do so entitles the tenant to bring a claim under HA 2004, s 214 which among other things gives the court the power to order the repayment of the deposit and requires the court to order payment of compensation of between one and
Q&As
The right to buy scheme enables most council tenants to buy their council home at a discount, provided they are a secure tenant, it is their only or main home, and the property is self-contained. The other key requirement is that the prospective purchaser must have been a public sector tenant for three years. The amount of discount the tenant receives will depend on how long they have been a tenant, the type of property that is being purchased, and the value of the property . If, in the scenario of this query, Party A’s tenancy was transferred from his or her sole name into joint
Q&As
Where a former tenant of a new lease has given an authorised guarantee agreement (AGA), and the assignee defaults in payment of the rent, the former tenant may be liable to the landlord for the shortfall. The liability is subject to the landlord serving a notice under section 17 of the Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) (a 'section 17 notice'). The section 17 notice must be
Q&As
When the headlease is forfeited, that determines both the headlease itself and any sublease granted out of it, regardless of whether consent to the sublease was granted by the landlord. At that point, the subtenant has no legal right to remain in occupation. See Practice Notes: Forfeiture of a lease under the heading ‘Forfeiture of a lease—Effect of forfeiture’ and What happens to an underlease on termination of the lease? If the sub-tenant is allowed to remain by the landlord, then there are a number of possible bases on which the sub-tenant could then be said to occupy the premises. First, the sub-tenant could be a tolerated
Q&As
The starting point is that where a notice of claim is served, the tenant by whom it is given is liable for the reasonable costs incurred by the landlord in dealing with certain matters (section 60(1) of the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993)). They are: ‘(1) any investigation reasonably undertaken of the tenant’s right to make the claim, (2) any valuation of the flat undertaken for the purposes of fixing the premium or other amount payable by the tenant and (3) the grant of the lease (LRHUDA 1993, s 60(1))’ Although these costs may extend to
Q&As
There does not appear to be any guidance or case law on this specific scenario. Section 1(3) of the Landlord and Tenant Act 1988 makes it clear that where landlord's consent is required for an assignment, the landlord must give that consent except where it is reasonable to withhold it. This applies even where the covenant does not expressly provide that a landlord is not unreasonably to withhold consent. Section 19(1)(a) of the Landlord and Tenant Act 1927 imports that requirement into any covenant that requires landlord’s consent for alienation, and applies ‘notwithstanding any express provision to the contrary’. Consent
Q&As
Please see our Practice Note: Business rates—empty property, which states that empty property relief applies for the first three months that retail premises are unoccupied (six months in the case of industrial premises). This relief however, attaches to the property rather than the owner so a developer can sell or lease a qualifying property with the benefit of the remaining period of the relief. If the full period of relief has been claimed by the tenant, there is no scope for the landlord to claim further relief. For this reason, commercial leases often include provisions requiring the tenant to indemnify
Q&As
If a charity is removed from the charity register, its trust funds and assets would be transferred to a suitable charity with similar purposes. See Practice Note: Charity Commission regulatory and enforcement powers. We assume that the charity was not wound up due to insolvency, but if that is the case then see Practice Note: Distressed charities—insolvency. A landlord’s
Q&As
In this situation there has not been a formal assignment of the lease because Company B refuses to obtain directors' guarantees which is a requirement before the tenant can assign. It is not unusual for a lease to restrict the ability of the tenant to assign it. The range of possible restrictions runs from an absolute bar, to requiring the consent of the landlord, to requiring that consent and also complying with certain conditions, entry into guarantees being one of them. Where there is requirement to obtain consent, section 19(1) of the Landlord and Tenant Act 1927 (LTA 1927) imposes a requirement that it be not unreasonably withheld. An assignment following a failure to seek consent or comply with any conditions
Q&As
A power unique to liquidators and trustees is the power to disclaim onerous property. However, there are restrictions on the use of that power, including where a person interested in any property which could be disclaimed requires the liquidator to decide whether to disclaim that property by delivering an application to the liquidator in writing. Disclaimer can no longer be effected after the period of 28 days beginning with the day