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PRECEDENTS
Rent review memorandum Landlord • [full name of Landlord] [of OR incorporated in England and Wales with company registration number [number] whose registered office is at] [address]; Tenant • [full name of Tenant] [of OR incorporated in England
PRACTICE NOTES
Contractual and statutory basis of rent review and time intervals Tenants under 1991 Act Tenancies benefit from substantial security of tenure and statutory tacit relocation. Parties are free to make provision for rent review in their contract of lease, but subject to that rent review is regulated by the Agricultural Holdings (Scotland) Act 1991, s 13 (AH(S)A 1991) which deals with variation in rent after the contractual ish has expired and at prescribed intervals thereafter. Almost all 1991 Act tenancies are running on tacit relocation. Rent review is therefore, in almost every case, governed by AH(S)A 1991, s 13. This procedure cannot be contracted out of, although the parties may agree a variation of rent between themselves at any time. In Moll v McGregor 1990 SLT (Land Ct) 59 (not reported by LexisNexis®), one lease was dated from 1944 and another from earlier. In 1977, the parties sought to modify a lease then running on tacit relocation by linking rent to review on indexation. It was held that it was not
PRACTICE NOTES
Most 2003 Act Tenancies, (SLDTs, LDTs, MLDTs and when the relevant provisions come into force, repairing tenancies) are at present running on their contractual term, rather than on tacit relocation. Currently SLDTs, and LDTs are in existence and their rent review, in default of contractual provision, is governed by the section 9 of the Agricultural Holdings (Scotland) Act 2003 (AH(S)A 2003). With effect from 1 December 2017, no new LDTs can be created (subject to transitory provisions in the Land Reform (Scotland) Act 2016 (Commencement No. 6, Transitory and Saving Provisions) Regulations 2017 (SSI 2017/299)), and MLDTs can be created. Repairing tenancies have not yet been brought into force, but the provisions described in this Practice Note will also apply to them. The basis of rent review assumes that the landlord does not let to the tenant the farm and what is actually on it, but only the farm with the benefit of those parts of the fixed equipment that have been provided by the landlord. In practice,
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. The level of rent which a tenant must pay is determined by the tenancy agreement between the landlord and the tenant and which governs the legal relationship between them. Many tenancy agreements make provision for the rent to be increased during the lifetime of the tenancy, particularly if the landlord and tenant envisage the tenancy lasting for some time. On the other hand, if the tenancy is intended to be for a short period of fixed duration (as is the case with many assured shorthold tenancies) the rent may be fixed at one level for the duration of the fixed term. Precisely how the level of rent payable is fixed and what rights the landlord and tenancy have regarding rent increases depends on the type of tenancy. The main types of tenancy and the applicable legal rules governing the setting of the rent are addressed in turn below. Private sector tenancies Rent Act tenancies What is a Rent Act tenancy? Most
NEWS
Property Disputes analysis: The Court of Appeal held that a landlord was not entitled to claim a ground rent collection fee for the costs of preparation of the formal demand for rent that had to be given by the landlord pursuant to section 166 of the Commonhold and Leasehold Reform Act 2002 (CLRA 2002). Under the terms of the lease the landlord was expressly entitled to its costs relating to ‘the collection of rents’. The court ruled that the effect of CLRA 2002, s 166 was that rent could not be collected until it was due, that is until the statutory notice had been served (‘the section 166 notice’). As a result, the preparation of the section 166 notice was not part of the ‘collection’ of rents. This decision reconfirms the narrow approach of the courts to the interpretation of costs recovery provisions in a lease. If such costs are to be recovered, the lease must include express provision to that effect. Written by Caroline DeLaney, partner at Stevens & Bolton LLP.
GLOSSARY
The rental of copies of copyright work to the public is an act restricted by the copyright.
GLOSSARY
A rental agreement is a contract under which a landlord grants a tenant the right to occupy residential or commercial premises in return for rent, usually for a short or fixed period. In UK and Irish legal practice the term is descriptive rather than a precise statutory label, and may encompass tenancies, licences to occupy, and commercial leases, depending on the wording and circumstances. Key features typically include: identification of the premises, term, rent and payment provisions, repairing obligations, service charges, use and alienation clauses, deposit arrangements, and termination provisions (including notice and forfeiture/irritancy). In England and Wales, “rental agreement” often refers in practice to an assured shorthold tenancy or a licence, governed principally by the Housing Acts and common law. In Scotland, Northern Ireland and Ireland, the expression is also used generically alongside more formal concepts such as private residential tenancies, tenancies of dwellings, and business leases. The characterisation of a rental agreement-particularly whether it creates a tenancy or a licence-has significant consequences for statutory protections, security of tenure, notice requirements, registration, and enforcement remedies.
GLOSSARY
A performer has the right to prevent the rental or lending of the performer's work.
GLOSSARY
Copyright or a performer’s property right of certain works may be infringed by the rental or lending of copies of the work. The rights to stop other people from doing these things can be bought and sold in commerce, bequeathed by will, or otherwise dealt with meaning that they are proprietary rights. Rental and lending rights are contained within Directive 2006/115/EC (the EU Rental and Lending Rights Directive), as implemented in the UK by the Copyright and Related Rights Regulations 2003, SI 2003/2498 and include: • the exclusive right to authorise and prohibit rental and lending of the work • the unwaivable right to obtain equitable remuneration for the rental of the work
PRECEDENTS
1 Definitions In this Schedule: 1.1 'Approved Criteria' means the criteria set out in paragraph 4 (Letting terms) below; 1.2 'Approved Letting' means a letting of Vacant Floor Area approved in writing by the Buyer; 1.3 'the Cut Off Date' means a date [insert number] years after the Completion Date; 1.4 'the Minimum Net Annual Rent means £[insert net amount] per year; 1.5 'the Net Annual Rent' means the yearly rent or aggregate of the yearly rent reserved and made payable under Approved Lettings (or any amount payable in lieu of such rent pursuant to any agreement or undertaking for an Approved Letting) disregarding: 1.5.1 [any rent-free or rent-reduced periods (except to the extent that such periods fall after the Cut Off Date) and assuming instead that the yearly rent payable on the expiry of such period was also payable throughout such periods;] 1.5.2 any sum by way of service
GLOSSARY
Any annual or other periodic sum charged on or issuing out of land except rent reserved by a lease or tenancy or any sum payable by way of interest.
NEWS
Property analysis: the Upper Tribunal (UT) held that rentcharges leases granted by rentcharge holders as a remedy for non-payment of arrears are capable of registration at the Land Registry.