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LPC Law Notes Property Law and Practice Notes

Repair, Rent, Service Charge & Insurance Notes

Updated Repair, Rent, Service Charge & Insurance Notes Notes

Property Law and Practice Notes

Property Law and Practice

Approximately 490 pages

A collection of the best LPC PLP notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".

In short these are what we believe to be the strongest set of PLP notes available in the UK this year. This collection of notes is fully updated for recent exams, a...

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Type of clause? What does it do? Landlord’s Concerns Tenant’s Concerns Remedy for Breach
Repair ‘Leave no brick uncovered’: When drafting repair obligations make sure all parts of premises are covered by an obligation to repair – either landlord or tenant must take responsibility:

  • Which areas are whose responsibility

  • Decoration requirements

  • “Leave no brick uncovered”

  • careful about repairing “inherent defect” under covenant to repair

  • Repair vs. improvement – do works go to the whole or substantially the whole of the structure, or only to a subsidiary part or change the building into a different character from that which had been let?

  • Cost of works in relation to the previous value of the building

  • Standard of repair determined by “age, character and locality” at the time of the letting

  • “good condition” – more onerous clause

Landlord may bring a claim for damages

S18 LTA 1927 – limits the maximum amount recoverable in all cases by providing that the damages cannot exceed the amount by which the value of the reversion has been diminished by the breach

No damages are recoverable for failure to put or leave the premises in repair at the termination of the lease, if the premises are to be pulled down shortly after termination

Leasehold Property (Repairs) Act 1938

If the lease granted for 7 years or more and still has at least 3 years left to run – special procedure landlord must follow to sue for damages.

Landlord must serve notice on tenant under s146 LPA 1925 and must inform tenant of right to serve a counter-notice within 28 days. If counter-notice served, landlord cannot proceed without leave of court – landlord must prove:

  • Value of reversion has been substantially diminished; or

  • Immediate remedying of breach required for preventing substantial diminution; or

  • Special circumstances which render it just and equitable that leave be given

Self-help

If lease contains express right for landlord to enter demised premises and carry out any necessary repairs then this can occur

Specific performance – rare!

Forfeiture

Tenant’s remedies:

Damages – compare the value of the premises to the tenant at the date of assessment with their value if the landlord had complied with his obligation. Also entitled to damages for consequential loss

Self-Help

Specific Performance

Appointment of receiver
Insurance

Ensures that the building and premises is ensured in case of fire, flood, damage etc.

Each tenant could insure his own premises and landlord insure common parts but this is not so practical

Alternative and common approach is for landlord to insure whole block and cost passed on to tenants through service charge

Pool Re – government backed scheme for insuring against terrorism

Insurers are themselves covered in the event that there is a terrorist claim

Damage to physical property rather than cyber terrorism

Meaning of Acts of terrorism:

S2(2) Reinsurance (Acts of Terrorism) Act 1993

HM Treasury Guidance

Have to extend insurance to entire portfolio

  • Reinstated in event of damage as physical basis of investment

  • Charge tenant through service charge

  • Reinstated so that he can continue to occupy the let premises as intended under the lease

  • Risks insured against – stated expressly

  • Amount of Cover – insured to full reinstatement value including

    • Costs of demolition and site clearance

    • Professional fees

    • Allowance for inflation

  • Application of policy monies – covenant by landlord to reinstate premises

  • Rent suspension during any period that premises cannot be occupied following damage by insured risk

  • Right to determine lease on notice if reinstatement impossible

 If tenant covenanted to insure and failed to do so then landlord can claim damages if premises damaged – measure being the cost of rebuilding
Rent

Amount of rent must be certain

The actual amount need not be stated as long as some means are provided by which the exact amount can be ascertained

...

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