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Security of tenure (Grounds for opposition (s30(1)(a) Breach by T on…
Security of tenure
Grounds for opposition
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Grounds a,b,c,e are discretionary/ Grounds D,F,G are mandatory. If proved, court must allow L's opposition
'Near miss scenario' if L fails to prove d, e, f, court can show could have proved ground if TD in notice had been up to 12 months later, court must refuse applciation for new lease (s31(2))
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Termination of a tenancy
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s27 notice by T on L simply to terminate current tenancy without renenwal. Need not be in prescribed form
If acting for L & rents have fallen, good to serve 12 months notice to get higher rent for longer period. If acting for T, and rents have fallen, serve a 6 month notice to obtain advantage of new lower rent as soon as possible. Get valuer's advice. Keep dates in mind.
Once L has served s25 notice, T cannot serve s26 notice. Once T serves s26, L cannot serve s 25 notice
s23(1) defines situations where the 1954 Act applies (i) tenancy (ii) occupation (iii) purpose of a business
- Tenancy: Street v Mountford. includes oral, written tenancies. Excludes licences. some are excluded in s43 of the Act
- Occupation: T must be occupier of at least part to obtain protection. Measure of control over anyone else using premises
- Business. s23(2) has a wide definition
s43: tenancies of agricultural holdings, mining leases etc, not exceeding 6 months (can get protection if in premises for 12 months or more), or if it is renewable.
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Interim Rent
Until new lease is granted, T will continue to pay old rent. s24A allows either party to apply to court for "interim rent" by payable from earliest termination/CD which could have been spcefied in the relevant notice (s24B)
Amount of interim Rent: Where L is willing to grant new lease, interim rent will be payable at market level (s24C)
Where L unwilling to grant new lease and interim rent is appied for, this is assessed on basis of tenancy, usually 10-15% below market rent (s24D)
SDLT: If original lease was on which stamp duty was paid, no implications in holding over.
Competent Landlord (s44)
Correct L is identified for the s25, 26, 27 notices (T's immediate L is not necessarily the CL"
s40 enables L to known which T to serve notice on, specific info
Compensation for failure to obtain new tenancy (s37) (grounds e, f, g)
If L succeeds on grounds a,b,c or d, then no need for compensation. If both compensation and no compensation is available, then no comp
Amount of comp
Multiplier of the rateable value of premises. If occupied for less than 14 years, compensation is rateable. If more, than twice the rateable value s 37A: also available if L falsely relies on a ground. s38(2) prohibts exclusion of statutory compensation
The new lease
If parties cannot decide terms - Principal terms: s32-34 - duration is discretionary, but not more than 15 years . Rent, court decides using valuation formula (assumptions and disregards)
Other terms: s35 - case of O'May v City of London Real Property - current tenancy is the starting point. Terms will be according to justice and fairness, having regard to all circumstances.
s24(1) LTA 1954
(i) tenancy will continue after CED of lease until terminated in specified way
(ii) T has right to apply for new tenancy on termination of current tenancy