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When a company is dissolved, its assets vest in the Crown as bona vacantia (literally, ownerless goods)—see section 1012 of the Companies Act 2006 (CA 2006). This applies not just to chattels but also to real property (including leases). The Crown will often disclaim its interest in the lease, bringing it to an end, under CA 2006, s 1013. By CA 2006, s 1015, disclaimer operates so as to terminate, as from the date of the disclaimer, the rights, interests and liabilities of the company in or in respect of the property disclaimed. The Crown does not accept liability under any tenant covenants including in respect of the payment
Q&As
For information generally: • on time limits in equality of terms (equal pay) claims, see Practice Note: Equal pay claims: time limits • on time limits for presenting employment tribunal claims, see Practice Note: Time limits for presenting employment tribunal claims • on the early conciliation (EC) requirement, see Practice Note: The early conciliation requirement Under EC requirement set out in section 18A(1) of the Employment Tribunals Act 1996 (ETA 1996), before a person (the ‘prospective claimant’) presents an application to institute relevant proceedings relating to any matter, the prospective claimant must provide to Acas prescribed information about that matter, in the prescribed manner (unless one of the exemptions to the scheme applies). In practical terms, the impact of the EC requirement is that, in most cases, in order to present a valid tribunal claim a prospective claimant must: • send Acas a completed EC
Q&As
Depending upon the precise wording of the lease, an assignment of a lease without landlord’s consent is likely to be a breach of covenant, which gives rise to a right to forfeit. Once a right to forfeit has arisen, the landlord must not do anything which would waive the right if it wishes to try to terminate the lease. A waiver will take place if the landlord unequivocally affirms the existence of the lease, in full knowledge that the tenant has committed a once and for all breach of covenant. Examples include
Q&As
Under section 3(1) of the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993), the right to collectively enfranchise applies to any premises if: ‘(a) they consist of a self-contained building or part of a building, (b) they contain two or more flats held by qualifying tenants, and (c) the total number of flats held by such tenants is not less than two-thirds of the total number of flats contained in the premises’ Accordingly, the right to enfranchise (leaving aside a ‘part of a building’ which is defined in LRHUDA 1993, s 3(2)) is limited to ‘a self-contained building’. Each element of this definition needs to be considered. The word ‘building’ is not defined in LRHUDA 1993 but it likely means some sort of permanent construction. In this question, each of the block of flats is a ‘building’ (but see below as
Q&As
Co-owners of the legal estate in a property hold the interest as joint tenants. Joint tenants do not have a specific share in the property in common ownership and the property
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Interim Rent Period Ordinarily, the interim rent period runs from the ‘appropriate date’ which is the earliest date which could have been specified in the section 25 notice (section 25 of the Landlord and Tenant Act 1954 (LTA 1954)) or section 26 request (LTA 1954, s 26) which was served, until the date the current tenancy is determined (following judgment by the court, notice or discontinuance), this is usually the day before the new lease commences. Section 28 of the Landlord and Tenant Act 1954 LTA 1954, s 28
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Use Class B1 of the Town and Country Planning (Use Classes) Order 1987 (UCO 1987), SI 1987/764 was removed from the UCO 1987 from 1 September 2020. Most of the uses previously within that use class are now within Class E ((UCO 1987, SI 1987/764, Sch 2) which is a very wide class of use. The precise answer to the question is a matter of construction of the lease. Depending how tight or wide the clause describing the permitted uses is construed,
Q&As
We assume that: • the tenant is in occupation and that the lease was one granted for a minimum of 15 years • that the property was not vested in the liquidators but rather that they transferred it on behalf of the insolvent company • the liquidators were not acting as fixed-charge receivers • the property in question is non-residential In conducting our research we have focussed on the law relating to liquidation and the powers of the liquidator rather than the law of surrender by operation of law, although we note you refer to our Practice Note on registration following surrender at HM Land Registry but it is not evident from this question how the lease has been surrendered if the tenant is still in occupation. Property of insolvent company We refer you to our Lexis®PSL Practice Note: Insolvency—liquidation, which covers how liquidation can be commenced and the types of liquidations, the official receiver’s
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Subject to an employee's right to object to the transfer, the effect of a relevant transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 is that the transferee acquires: • all rights, powers, duties and liabilities under or in connection with the contracts of employment of transferring employees • liability for all pre-transfer acts and
Q&As
Where an individual dies insolvent, the Administration of Insolvent Estates of Deceased Persons Order 1986, SI 1986/1999 (DPO 1986) applies. The principle effect of the DPO 1986 is to modify the Insolvency Act 1986 (IA 1986). For further reading, see Practice Note: Effect of the debtor's death on an insolvency process You have not specified what kind of claim has been issued. For the purpose of
Q&As
Real property in England and Wales is held in two ways, being legal ownership (in effect, in whose name the property is registered) and beneficial ownership, which is the ownership of the equity in the property. The legal owners can hold the beneficial interest on trust for themselves, themselves and others, or for others. It is the beneficial owners who are entitled to the proceeds of sale when a property is sold. Mortgage companies will invariably seek to ensure, in joint ownership cases where the beneficial ownership is held elsewhere,
Q&As
Defining a contractual term by reference to a list of items and expressing that list to be ‘without limitation’, is a technique used by the drafter to broaden the potential reach of the term without requiring the drafter to expressly provide for every possible eventuality which could be captured