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Q&As
The right to periodically review the rent is entirely contractual and the parties to a lease will be bound by the terms agreed by them or by their predecessors in title. If there is no rent review clause included in the lease then the rent will not change. The courts will only interfere with the review process if the relevant provision is uncertain (although the courts will not enforce a clause which merely provides for the parties to negotiate) or if an issue arises as to how the mechanism for determination of the reviewed rent is to be implemented. The wording of the clause in the question is very simple: the landlord must inform the tenant of the new rent before
Q&As
Whether you are acting for either of the original landlord or tenant, you may consider that the simplest and most cost effective way to proceed is for the parties to enter into a simple deed of rectification to record the correct rent review date. This has the benefit of certainty, but would only be available to the original parties and assumes both parties wish to correct the error (which we assume would be in both parties’ interests). The solicitors acting for the original parties have potentially made a drafting mistake and so they should have a common interest in resolving this quickly without
Q&As
Long leaseholds of residential property invariably contain a provision for the payment of ground rent. This may be a fixed sum or a sum that increases on the basis of a multiplier at specified points in time. Section 127 of the Rent Act 1977 was amended by section 78 of the Housing Act 1980 so as to allow the assignment of a tenancy at a premium as an exception to the provisions
Q&As
Many leases will make provision for a lease to be able to be assigned by the tenant during the term. The lease will usually contain provisions such as the need for the tenant to enter into an authorised guarantee agreement under section 16 of the Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) and the landlord’s consent to assignment may be required. Upon assignment the incoming tenant steps into the shoes of the outgoing tenant and is responsible for payment of rent and compliance with the other tenant covenants. Many leases also contain provision relating to rent reviews. Rent reviews can ordinarily take place at any time following on from the triggering event, as time is not ordinarily made of the essence for the carrying out of a rent
Q&As
We refer you to Practice Note: LPAs—revocation and disclaimer, in particular to the section entitled ‘Disclaimer’, which reads: ‘An attorney can disclaim their appointment under a registered LPA by completing form LPA005 and sending this to the donor with copies to any other attorney acting and the OPG. Use of form LPA005 is mandatory so a letter from the attorney to the donor will not suffice.
Q&As
In answering this Q&A we have assumed that you are referring to a share sale between two private limited companies. Where a share purchase agreement contains provisions providing for back-to-back warranties (Original SPA), warranties in the resale transaction given on a back-to-back basis will be identical to those contained in the Original SPA (for example, see clause 8.14.3 of Precedent: Back to back warranties provisions—share purchase agreement). However, where a provision permitting assignment of the benefit of the warranties is included in the Original SPA, the original buyer may then assign the benefit of such warranties to the resale buyer either wholly or in part. If, for example,
Q&As
An assured shorthold tenancy is a species of assured tenancy. A tenancy cannot be assured if, despite otherwise qualifying, it falls within one of the exceptions. One of these is that, subject to various other criteria, the landlord also lives in the building. It is thought that tenancies may come in and out of 'assured' status during their term, (see Practice Note: Assured and assured shorthold tenancies—granting, at section 'Ceasing to fall within AT criteria' and Commentary: 'If and so
Q&As
If the landlord’s contract does not match the terms set out in the section 5 notice then the landlord has not complied with the section 5 procedure and is in breach of section 8A(2) of the Landlord and Tenant Act 1987 (LTA 1987). Failure to comply with LTA 1987 by not sending out
Q&As
Following service of a tenant’s notice pursuant to section 42 of the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) and the landlord’s counter-notice, either party may subsequently apply to the First-tier Tribunal (FTT) in England or the Leasehold Valuation Tribunal (LVT) in Wales to determine any matters which remain in dispute. The application must be made no later than six months from the service of the landlord’s counter-notice (see LRHUDA 1993, s 48). Where the terms of the acquisition have been agreed or determined by the FTT but the new lease has not been entered into by the end of the ‘appropriate period’ either party may apply to the County Court for an order either (in
Q&As
This question raises the manner in which a tenancy which has the protection of the Housing Act 1988 (HA 1988) can be brought to an end. Such a tenancy is an assured tenancy (AT) and can only be brought to an end by obtaining an order of the court and by executing it. A possession order is enforceable by warrant of possession. Of itself, a power of re-entry contained in a tenancy to which HA 1988 applies does not entitle the landlord to bring it to an end. This is because a court shall not make an order for possession of a dwelling-house let on an AT except on one or more of the grounds set out in HA 1988, Sch 2. The landlord must prove the existence of factual matters contained in the various grounds. Often, the court will also have to conclude that it is reasonable
Q&As
Once forfeiture has been effected by proceedings, the lease terminates and the landlord and tenant do not have any continuing liabilities under it (although they remain liable for any breaches which occurred prior to the forfeiture). The tenancy and all interests derived from it, such as sub-tenancies and mortgages, are brought to an end and the landlord is immediately entitled to possession, subject to the tenant’s right to claim relief, or indeed any other third parties who have the right to do so. Forfeiture terminates the lease and therefore the landlord cannot choose to subsequently treat the lease as continuing (Jones v Carter). Relief from forfeiture Only the court has the ability to reinstate the original lease by granting the tenant relief from forfeiture
Q&As
Case study A residential lease contains a right to use a parking space. Following completion of a sale of the lease, a deed of variation between the landlord and former tenant, removing this right, comes to light. The deed includes an obligation on the former tenant to register the deed, but this was never done. The deed is therefore not on the title, nor was it referred to in the particulars of sale. • should either the former tenant or the landlord have disclosed the deed? • what are the new tenant’s remedies? The exact nature of the right to use the parking space could potentially form part of the demise, or it could amount to an easement, or a licence. However, it is likely that the parking space was granted by express easement. To take