Most leases will contain provision allowing the landlord to forfeit the lease where there has been a breach. By section 146 of the Law of Property Act 1925 (LPA 1925) it is necessary to serve a notice setting out the breach and, if capable of rectification, requiring the tenant to do so within a reasonable time, as a prerequisite to forfeiture whether by peaceable re-entry of service of court proceedings. However forfeiture for rent arrears is excluded from the ambit of the section. It is possible for a landlord to waive the right to forfeit a lease. This will occur if the landlord whether expressly or through their actions does some unequivocal act which recognises the continued existence of the lease

While ordinarily a tenancy will in principle attract an inheritance tax (IHT) liability on its value (subject to the nil rate band and other reliefs) the Inheritance Tax Act 1984 (IHTA 1984) provides in certain types of case that agricultural property relief will be available at up to 100%. The relevant provisions are contained in IHTA 1984, s 116(2)(a)–(c). IHTA 1984, s 115(2) defines 'agricultural property', being property eligible for relief, as agricultural land or pasture including woodland and any building used in connection with the intensive rearing of livestock or fish if they are occupied with agricultural land and pasture and are ancillary to it, and cottages, farm buildings and farmhouses. The agricultural value of such property is treated by IHTA 1984, s 115(3) as being the value if it were subject to a perpetual covenant prohibiting its use otherwise

We refer you to the following content that we hope will assist you with your research: • Practice Note: ◦ IHT—nil rate band (NRB) and transferable NRB (in particular, see main heading: 'Relevance of domicile') ◦ Recognition of overseas marriage or civil partnership • Inheritance Tax Manual: ◦ Basic Principles: What constitutes a valid marriage? HMRC Manuals (IHTM43003) • Q&As: ◦ Where

It is assumed that the first spouse’s death was on or after 6 April 2017. It is also assumed that the lifetime trust created over the property in August 2017 was not a qualifying interest in possession trust for inheritance tax (IHT) purposes. Further, the IHT position for the settlors' own estates on death will depend on the precise terms of the trust and any appointments made by the trustees. Tax or other consequences for the trustees of an appointment of property out of the trust following the first spouse's death (or at any time) are not considered in this Q&A, yet these should be considered carefully. For background information on the residence nil rate band (RNRB), see Practice Note: IHT—residence nil rate band. Availability of

We have assumed that there is a qualifying residential interest in the surviving spouse’s estate that is closely inherited on their death. See Practice Note: IHT—residence nil rate band, which sets out the conditions for the residence nil rate band (RNRB) to be available on an individual’s death. In particular, see section: Tapering provisions. If the deceased’s net estate (ie after debts and liabilities are deducted) is worth over £2m at death, then the RNRB will be tapered

For information on the residence nil rate band (RNRB) and the conditions for it to apply (as well as restrictions and the taper threshold), see Practice Note: IHT—residence nil rate band. In theory, the transferable RNRB can be claimed where there was a qualifying residential interest in the first spouse’s estate which passed as settled property and was then sold and its value in the trust and/or surviving spouse’s estate was subsequently closely inherited on their death, ie where there is no residential propert in the surviving spouse’s estate or the trust on their death. The availability and amount of the transferable RNRB available in this particular scenario will depend on a number of factors, including the dates of

It is likely that when granting a lease of a residential flat to a company, a landlord will not be granting a long lease (being a lease exceeding 21 years, but will be granting a common law tenancy for a period of up to 21 years. See Practice Note: A summary of types of private residential tenancies. The consequences of granting a common law tenancy rather than an AST, in the first instance, is that the statutory notice procedures under s 8 and s 21 of the Housing Act 1988 (HA 1988) do not apply. Ordinarily, under an AST, a landlord is able to serve either: • a notice pursuant to s 21 of the HA

A bank account is a chose in action in the form of a debt owed by the bank to the account-holder. Under general law principles, a chose in action is situated in the jurisdiction where it is properly

Leases frequently define the use of the property in question, often including limitations in respect of residential occupation or business use. When considering covenants limiting use to a private dwelling house, it is the adjective ‘private’ that makes the domestic nature of the lease fundamental and clear. This rigid distinction is in recognition of the different statutory codes governing rents and security of tenure. Interpretation of a restrictive covenant depends on the factual context, and on the construction of the whole document containing the covenant. In Tendler v Sproule, the tenant agreed to use the premises as a ‘private dwelling-house only’. Lord Justice Morton held at para [194] that: ‘the taking in of two paying lodgers is a breach of a covenant “not to use the said

The Town and Country Planning (Use Classes) Order 1987, SI 1987/764 provides for different categories of uses. Use class A2 is described as comprising uses for the provision of financial services, professional services (other than health or medical services), or any other services (including use as a betting office) which it is appropriate to provide in a shopping area, where the services are provided principally to visiting members of the public. Use class B1 is described as including use for any of the following: • as an office

Whether a use comes within a particular use class is a matter of fact and degree and will turn on the character and actual use of the premises. As set out in our Practice Note: Operation of the Use Classes Order in Wales, the court has offered the following guidance in deciding whether a use comes within a particular use class: • an accurate description of the actual use must be formulated • a decision must be made as to whether that description fits into the particular use class, as a matter of construction • a

A lease is a contact made between the landlord and the tenant, and, as with any contract, its terms can be varied by agreement. Such variations should be by deed if the lease is made by deed, in order to comply with the requirements of the Law of Property Act 1925 and the Law of Property (Miscellaneous Provisions) Act 1989. Most terms of a lease are amenable to variation, but there are some circumstances in which a purported variation will instead take effect as a surrender and re-grant of the lease.