Under section 116(7) of the Finance Act 2003 (FA 2003), where six or more separate dwellings are 'the subject of a single transaction involving the transfer of a major interest in, or the grant of a lease over, them', then those dwellings are treated as not being residential property. This means that the non-residential rates of stamp duty land tax (SDLT) apply to that transaction. For more on rates of SDLT, see Practice Note: Rates of SDLT. It is understood that the reason this provision was introduced was because the acquisition of a certain number of dwellings (six having been picked for the legislation) as part of one deal takes on a commercial flavour. Such a deal is not about buying homes. However, the legislation specifically refers to a single transaction and not a single arrangement or other words that

If the proprietor of a registered estate has given an indemnity covenant in relation to a restrictive covenant or other matter that affects the estate, or in respect of a positive covenant that relates to the estate, then the registrar may make an appropriate entry in the register (see Land Registration Rules 2003 (LRR 2003), SI 2003/1417, reg 65(1)), and where the registrar does so, the entry must refer, where practical, to the instrument containing the covenant (LRR 2003, SI 2003/1417, reg 65(2)). This is generally done

A purchaser's equitable lien is a form of security that arises when a contract for sale is made. It protects part payments made by the buyer, such as a deposit. In Williams v Alter Domus Trustees (UK) Ltd Mr Justice Miles set out the following principles applicable to equitable liens: ‘i) The purchaser's lien arises in equity to give the purchaser protection for any part-payments made under a contract to acquire an estate in land. ii) The lien is in the nature of an equitable charge. It extends to part payments, interest and costs thrown away. iii) It arises by operation of law and depends on there being an enforceable contract, but does not arise from the express terms of the contract and is not a implied term of the contract. iv) The lien may be excluded or postponed to other security

A redesignation of shares involves a change in the name of some or all of a class of shares that a company has in issue, without any change being made to the number or nominal value of those shares or any change in the class rights attaching to them (see Q&A: What is the process for a redesignation of shares?). A simple redesignation of shares in that strict sense will not constitute a variation of class rights. However, if the redesignation of shares is happening in conjunction with changes to the rights attaching to those shares or a conversion of shares from one class to another, there may be a variation of class rights. Therefore, each redesignation of shares by a company will need to be considered on its own facts. It

A rentcharge is a regular payment charged on land separate to any income payable under a lease. Section 1 of the Rentcharges Act 1977 (RcA 1977) defines a rentcharge as 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 of interest. See Practice Note: Rentcharges—apportionment, termination and enforcement. A rentcharge amounts to a registrable interest in land which allows the owner of the rentcharge to enforce payment of the money protected thereby. This interest is limited

A request for a new tenancy under section 26 of the Landlord and Tenant Act 1954 (LTA 1954) must be made in the prescribed form, or a form 'substantially to the same effect'—Landlord and Tenant Act 1954, Part 2 (Notices) Regulations 2004, SI 2004/1005, reg 2 and Sch 2, Form 3. That form contains a space for the tenant to set out the

Retention of title clauses The Encyclopaedia of Forms and Precedents (Vol 4(3)) provides the following description of a simple retention of title clause: ‘Under a retention of title clause, a seller of goods seeks to retain ownership of the goods, even after they have been delivered to the buyer, until he has received payment for them. A retention of title clause usually varies the general rule found in the Sale of Goods Act 1979 Section 18, Rule 1. Under this rule, ownership of the goods passes to the buyer when the contract is made, irrespective of whether the goods have been paid for or delivered, provided that the goods are in a deliverable state.’ (Retention of title clause: Encyclopaedia of Forms and Precedents [58.1]) As noted in our Practice Note: Retention of title, a valid retention of title clause gives a seller priority over secured and unsecured creditors of the buyer if the buyer fails to pay for the goods where it is insolvent

Consent of adjoining owner Trespass is the unlawful presence of a person on land in the possession of another. The ownership of land includes the airspace above it. Therefore, an invasion of the airspace above it is a trespass. The adjoining landowner can claim damages and obtain an injunction. Trespass is actionable, and so an injunction and nominal damages can be obtained, without the landowner having to demonstrate damage. It is sufficient that its property rights are being interfered with. Therefore, it is no defence that the damage is trivial and the landowner’s ordinary business is not interfered with. Oversailing issues crop up, commonly, in the case of development where a tower crane is used. If a crane will oversail other land or the highway, to

It is a requirement of a notice served under section 42 of the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) that it specifies the full name of the tenant. By LRHUDA 1993, Sch 12, para 9, the tenant's notice shall not be invalidated by any inaccuracy in any of the particulars required by LRHUDA 1993, s 42(3), but this does not appear to extend to the

A tenant who wishes to a claim a new lease under the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) must first serve notice under s 42 on the landlord. As the question suggests, this must be the 'competent landlord' who by s 40(1) is the person holding the reversionary interest on the termination of the existing lease which is itself of sufficient duration to enable that person to grant a new lease under the Act, that is to say one which will expire 90 years after the existing contractual term (s 56(1)). It will be apparent therefore that in many cases where the tenant holds by an underlease,

This Q&A refers to a business-to-business contract which is not subject to specific industry regulations or contracting terms. Under English contract law, a contract is formed when: • a valid offer is accepted • there is valid consideration • the parties intend to create legal relations For more information, see subtopic: Formation and interpretation. It is essential, when dealing with standard terms and conditions (T&Cs), that one party's T&Cs are brought to the attention of the other if they are to be effectively incorporated into a contract. See Practice Note: Standard terms and conditions—incorporation which summarises the law, guidance and practice in relation to incorporating a contracting party’s T&Cs into contracts and agreements. It provides guidance on how to ensure that your

Will a lease outside of Greater London be an assured tenancy due to the rental amounts being over £250 per annum? Schedule 1 Part I of the Housing Act 1988 (HA 1988) sets out the tenancies which cannot be assured, including HA 1988, Sch 1 Pt I, para 3A which provides as follows: ‘A tenancy— (b) under which the rent payable for the time being is payable at a rate of, if the dwelling-house is in Greater London, £1,000 or less a year and, if it is elsewhere, £250 or less a year’ Note that within the Greater London Area (GLA) this is £1000 and elsewhere this is £250. We assume that this property is outside of the GLA. It is not clear whether a tenancy, which at commencement fell within one of the exemptions, may subsequently become assured