Acing the SQE/Property Practice
Core knowledge areas of freehold real estate law and practice[edit | edit source]
Investigation of a registered and unregistered freehold title:[edit | edit source]
Freehold property transactions in English property practice typically involve the sale or purchase of a property that is owned outright by the seller or buyer, without any leasehold or other ownership interests attached. The key elements of a freehold property transaction typically include:
1. Offer and acceptance: The buyer makes an offer to purchase the property, and the seller accepts the offer.
2. Conveyancing: Once the offer is accepted, conveyancing takes place, which involves transferring the legal title of the property from the seller to the buyer. This typically involves drafting and exchanging contracts, and conducting searches to check for any legal issues or defects with the property.
3. Completion: The transaction is completed when the buyer pays the purchase price and takes possession of the property, and the seller transfers legal ownership to the buyer.
key elements and structure of freehold property transactions[edit | edit source]
The structure of a freehold property transaction typically involves the following steps:
1. Pre-contract stage: The buyer and seller negotiate the terms of the sale, including the purchase price, any conditions attached to the sale, and any other relevant details.
2. Exchange of contracts: Once the terms are agreed, the buyer and seller exchange contracts. This legally binds both parties to the transaction and sets out the terms of the sale.
3. Pre-completion stage: Between exchange and completion, the conveyancing process takes place, including any necessary searches and other due diligence.
4. Completion: On the completion date, the buyer pays the purchase price and takes possession of the property, and the seller transfers legal ownership to the buyer.
5. Post-completion stage: After completion, the buyer registers their ownership of the property with the Land Registry and pays any outstanding fees or taxes associated with the purchase. Throughout the transaction, various legal documents will be drafted and exchanged between the parties, including contracts, deeds, and other relevant documents. It is important to have a qualified solicitor or conveyancer to guide you through the process and ensure that everything is done correctly and legally.
process of analysing Land Registry official copy entries[edit | edit source]
The process of analyzing Land Registry official copy entries is an important step in any property transaction in England. Official copy entries refer to the legal documents held by the Land Registry that provide details about a specific property, such as ownership, boundaries, and any restrictions or charges on the property. The following are the key elements and structure of the analysis process:
1. Identify the property: The first step is to identify the property by obtaining the unique title number or address of the property.
2. Obtain official copy entries: The next step is to obtain official copy entries from the Land Registry. This can be done online by using the Land Registry's online portal or by submitting a request by post.
3. Analyze the title register: The title register provides details about the property, such as ownership, description, rights of way, and any restrictions on the property. It is important to analyze the title register to ensure that the seller has the legal right to sell the property and that there are no restrictions that may affect the buyer's use of the property.
4. Analyze the title plan: The title plan provides a visual representation of the property and its boundaries. It is important to analyze the title plan to ensure that the property boundaries are accurate and that there are no encroachments or boundary disputes.
5. Analyze any charges or restrictions: The official copy entries may also contain details about any charges or restrictions on the property, such as mortgages or easements. It is important to analyze these charges or restrictions to ensure that they are acceptable to the buyer and that they do not negatively impact the value or use of the property.
6. Raise any queries or concerns: If any issues are identified during the analysis process, such as discrepancies in the title register or title plan, or concerns about charges or restrictions on the property, these should be raised with the seller's solicitor to seek clarification or resolution. Overall, the process of analyzing Land Registry official copy entries is a critical step in any property transaction in England, as it ensures that the buyer is fully informed about the property and any potential issues or risks before making a purchase.
process of analysing an epitome of title and deducing ownership[edit | edit source]
An epitome of title is a document that provides a summary of the title deeds for a particular property. The process of analyzing an epitome of title and deducing ownership in English property practice involves several steps, including:
1. Obtaining the epitome of title: The first step is to obtain a copy of the epitome of title from the seller or their solicitor. The epitome of title should include all relevant documents, such as conveyances, leases, and other legal documents, that relate to the property.
2. Reviewing the documents: The next step is to review the documents in the epitome of title in detail. This will involve examining each document to ensure that it is valid and that it relates to the property in question. The documents should also be checked for any restrictions or limitations that may affect ownership.
3. Checking for encumbrances: It is also important to check the epitome of title for any encumbrances, such as mortgages or other debts secured against the property. These will need to be paid off or discharged before ownership can be transferred.
4. Examining the chain of title: The chain of title is a record of all the previous owners of the property. It is important to examine the chain of title to ensure that the current owner has a valid and legal claim to the property. This will involve tracing the ownership of the property back through all previous owners, checking for any gaps or inconsistencies in the chain of title.
5. Checking for covenants and easements: The epitome of title should also be checked for any covenants or easements that affect the property. These are legal agreements that may restrict the use of the property or grant rights to others, such as access to a shared driveway.
6. Obtaining legal advice: Finally, it is important to obtain legal advice from a solicitor or conveyancer. They will be able to review the epitome of title and advise on any issues that may affect ownership of the property.
By following these steps, it is possible to analyze an epitome of title and deduce ownership in English property practice. This will help to ensure that the transfer of ownership is legal and valid, and that the new owner has clear title to the property.
issues that could arise from an investigation of title and further action required[edit | edit source]
purpose and process of reporting to the client[edit | edit source]
Pre-contract searches and enquiries:
range and purpose of making searches and raising enquiries who would make the searches and raise enquiries results of searches and enquiries. Law Society Conveyancing Protocol
Finance:
sources of finance for a property transaction types of mortgage. Acting for a lender:
lender’s requirements purpose of a certificate of title. Preparation for and exchange of contracts:
key conditions contained in the: Standard Conditions of Sale Standard Commercial Property Conditions. purpose of, and matters covered by, special conditions methods of holding a deposit: stakeholder agent insurance and risk basics of VAT in a contract timing for issuing certificate of title to a lender the practice, method and authority to exchange consequences of exchange. Pre-completion:
form of transfer deed and formalities for execution pre-completion searches pre-completion steps. Completion and post-completion:
methods and effect of completion post-completion steps. Remedies for delayed completion:
common law damages contractual compensation notice to complete rescission. rescission.
Core knowledge areas of leasehold real estate law and practice[edit | edit source]
Structure and content of a lease[edit | edit source]
repair[edit | edit source]
Issues with the property may arise during a lease that require repairs. In these cases, the tenant has certain rights and responsibilities under the lease to ensure that the repairs are carried out. The lease will typically specify who is responsible for carrying out repairs and what types of repairs are covered. In some cases, the landlord may be responsible for all repairs, while in others the tenant may be responsible for certain repairs, such as minor maintenance and upkeep. If repairs are needed, the tenant should inform the landlord in writing as soon as possible. The landlord must then respond promptly and arrange for the necessary repairs to be carried out. If the landlord fails to do so, the tenant may be entitled to carry out the repairs themselves and deduct the cost from the rent, or seek compensation through legal action. Alternatively, the lease may provide for a specific procedure for dealing with repairs, such as requiring the tenant to report any issues to a designated maintenance company or property manager. It is important for both landlords and tenants to understand their rights and obligations with regard to repairs under a lease, as failure to comply with these requirements can result in disputes and legal action.
insurance[edit | edit source]
In English leasehold real estate law and practice, insurance is an important aspect of a lease agreement between a landlord and a tenant. It is designed to protect both parties in the event of damage or loss to the property or its contents. Typically, the lease will specify the type of insurance coverage required and who is responsible for obtaining and maintaining the policy. The landlord is usually responsible for insuring the building itself, while the tenant is responsible for insuring their own contents and personal belongings. The insurance policy should provide coverage for a range of risks, such as fire, flood, theft, and damage caused by natural disasters. The policy should also include liability coverage, which protects both the landlord and tenant from claims arising from accidents or injuries that occur on the property. In some cases, the lease may require the tenant to provide proof of insurance coverage before they can occupy the property. Failure to maintain adequate insurance coverage can result in the lease being terminated or legal action being taken against the tenant. It is important for both landlords and tenants to understand their insurance obligations under the lease and to ensure that they are adequately protected. This may involve consulting with an insurance agent or broker to obtain the appropriate coverage for their specific needs.
alterations[edit | edit source]
In English leasehold real estate law and practice, alterations refer to any changes or modifications made to the property by the tenant during the term of the lease. This can include anything from minor repairs or cosmetic changes to more significant alterations or renovations. Before making any alterations to the property, the tenant must obtain the landlord's written consent. The lease will typically specify the procedure for obtaining consent and may require the tenant to provide detailed plans or specifications of the proposed changes. The landlord may grant consent subject to certain conditions, such as requiring the tenant to obtain necessary permits or approvals from local authorities, or to use only licensed contractors for the work. The landlord may also require the tenant to remove any alterations at the end of the lease term or to restore the property to its original condition. In some cases, the lease may prohibit certain types of alterations altogether, such as structural changes or changes that could affect the safety or integrity of the building. It is important for both landlords and tenants to understand their rights and obligations with regard to alterations under a lease, as failure to comply with these requirements can result in disputes and legal action. The lease should provide clear guidelines and procedures for obtaining consent, and both parties should keep detailed records of any changes made to the property.
user and planning[edit | edit source]
In English leasehold real estate law and practice, user and planning refer to the permitted use of the property and compliance with planning regulations. The lease will typically specify the permitted use of the property, which may include restrictions on the type of business or activity that can be conducted on the premises. The tenant must ensure that they use the property only for the purposes specified in the lease and must obtain the landlord's written consent before using the property for any other purposes. If the tenant wishes to use the property for a different purpose, they may need to apply for planning permission from the local planning authority. Planning permission may also be required for any alterations or additions to the property. The landlord may require the tenant to comply with all planning regulations and to obtain any necessary permits or approvals before making any changes to the property. Failure to comply with planning regulations can result in legal action, fines, or the requirement to remove any unauthorized changes or additions. It is important for both landlords and tenants to understand their rights and obligations with regard to user and planning under a lease. The lease should provide clear guidelines and procedures for obtaining consent and complying with planning regulations, and both parties should keep detailed records of any changes or applications made to the property.
rent and rent review[edit | edit source]
Rent[edit | edit source]
Rent refers to the amount of money that the tenant pays to the landlord for the right to occupy the property. The lease will specify the amount of rent, the frequency of payments, and any penalties for late payment.
Rent review[edit | edit source]
Rent review is the process by which the rent is adjusted at regular intervals during the term of the lease. The lease will typically specify the frequency of rent reviews and the method for calculating any changes to the rent.
There are several different methods for calculating rent review, including:
1. Indexation: The rent is adjusted based on changes in a specified index, such as the Retail Price Index (RPI).
2. Market rent: The rent is adjusted to reflect changes in the market rental value of the property.
3. Fixed increase: The rent is increased by a fixed percentage or amount at each rent review.
The lease may also include provisions for rent concessions, such as rent-free periods or reduced rent for a certain period of time.
It is important for both landlords and tenants to understand their rights and obligations with regard to rent and rent review under a lease. The lease should provide clear guidelines and procedures for rent payments and rent reviews, and both parties should keep detailed records of all payments and rent reviews. Any disputes regarding rent or rent review can be resolved through negotiation, mediation, or legal action.
alienation[edit | edit source]
Alienation refers to the transfer of the tenant's interest in the property to another person, such as a sublease or assignment.
The lease will typically specify the conditions and procedures for alienation, including the landlord's consent, the payment of any fees or charges, and the terms and conditions of any sublease or assignment.
Sublease[edit | edit source]
Subleasing refers to the tenant's ability to lease all or part of the property to another person for a certain period of time. The lease may require the tenant to obtain the landlord's written consent before subleasing the property, and the sublease will typically be subject to the same terms and conditions as the original lease.
Assignment[edit | edit source]
Assignment refers to the transfer of the tenant's interest in the property to another person for the remainder of the lease term. The lease may require the tenant to obtain the landlord's written consent before assigning the property, and the assignment will typically be subject to the same terms and conditions as the original lease.
The lease may also specify restrictions on alienation, such as prohibiting subleasing or assignment without the landlord's consent, or requiring the new tenant to meet certain qualifications or criteria.
It is important for both landlords and tenants to understand their rights and obligations with regard to alienation under a lease. The lease should provide clear guidelines and procedures for obtaining consent and complying with any restrictions or conditions on alienation. Any disputes regarding alienation can be resolved through negotiation, mediation, or legal action.
options for the term of a lease[edit | edit source]
In English leasehold real estate law and practice, there are different options for the term of a lease, which refer to the length of time for which the tenant has the right to occupy the property.
1. Fixed Term: A fixed-term lease specifies a certain period of time during which the tenant has the right to occupy the property, typically for a period of years. At the end of the fixed term, the lease may expire or be renewed.
2. Periodic Term: A periodic lease does not specify a fixed term, but instead continues from one period to the next, such as a month-to-month lease or a year-to-year lease. The lease may be terminated by either the landlord or the tenant by giving notice.
3. Break Clause: A break clause is a provision in the lease that allows either the landlord or the tenant to terminate the lease before the end of the fixed term, subject to certain conditions and notice periods.
The lease may also include provisions for renewal, such as the tenant's right to renew the lease at the end of the fixed term, or the landlord's right to offer a new lease on different terms.
It is important for both landlords and tenants to understand their rights and obligations with regard to the term of the lease. The lease should provide clear guidelines and procedures for renewals, notice periods, and termination. Any disputes regarding the term of the lease can be resolved through negotiation, mediation, or legal action.
Code for Leasing Business Premises[edit | edit source]
The Code for Leasing Business Premises in England and Wales is a voluntary code of practice that sets out standards for commercial leases in England and Wales. The code was developed by a group of industry bodies, including the British Property Federation and the Royal Institution of Chartered Surveyors, and is supported by the UK government. The code aims to promote fairness and transparency in commercial leasing by setting out best practices for landlords and tenants to follow. It covers a range of issues related to commercial leases, including lease negotiations, lease terms, and dispute resolution. Some of the key principles of the code include: 1. Communication: Both parties should communicate openly and honestly throughout the leasing process, and should seek to establish a good working relationship. 2. Lease negotiations: The lease negotiations should be conducted in a timely and professional manner, and both parties should seek to achieve a fair and balanced outcome. 3. Lease terms: The lease should be drafted in clear and concise language, and should set out the rights and obligations of both parties in a balanced and proportionate manner. 4. Rent and rent reviews: The rent and rent review provisions should be fair and transparent, and any rent increases should be based on a clear methodology. 5. Dispute resolution: The lease should include provisions for resolving disputes in a timely and cost-effective manner, such as through mediation or arbitration. The Code for Leasing Business Premises is not legally binding, but it is widely regarded as a best practice guide for commercial leasing in England and Wales. Both landlords and tenants are encouraged to follow the code's principles in order to promote fairness and transparency in commercial leasing.
Procedural steps for the grant of a lease or underlease[edit | edit source]
drafting the lease[edit | edit source]
Drafting a lease under English leasehold real estate law and practice involves creating a legal document that sets out the terms and conditions of the lease between the landlord and the tenant. The lease should be carefully drafted to ensure that it accurately reflects the intentions of both parties and complies with all relevant laws and regulations. The lease should include the following key elements: 1. Property description: The lease should include a description of the property being leased, including its location, size, and any specific features or amenities. 2. Lease term: The lease should specify the length of the lease term, including any renewal options or break clauses. 3. Rent and payment terms: The lease should set out the amount of rent, when it is due, and the payment method. It may also include provisions for rent increases or reviews. 4. Repair and maintenance: The lease should specify the responsibilities of both the landlord and the tenant for repairing and maintaining the property. 5. Use and occupation: The lease should outline how the tenant can use the property, any restrictions on its use, and any requirements for obtaining planning permission or other permits. 6. Alterations and improvements: The lease should include provisions for any alterations or improvements that the tenant may wish to make to the property. 7. Insurance: The lease should specify the insurance requirements for the property, including any obligations on the tenant to take out insurance. 8. Alienation: The lease should set out the conditions for the tenant to assign or sublet the property. 9. Dispute resolution: The lease should include provisions for resolving any disputes that may arise between the landlord and tenant. The lease should be drafted in clear and concise language, and should be reviewed by legal professionals to ensure that it complies with all relevant laws and regulations. Both the landlord and the tenant should have a clear understanding of the terms and conditions of the lease before signing it. Any disputes that arise during the lease term can be resolved through negotiation, mediation, or legal action.
purpose of an agreement for lease[edit | edit source]
An agreement for lease is a legal document that is commonly used in English leasehold real estate law and practice to formalize a commitment by a landlord to grant a lease to a tenant at some point in the future. The purpose of an agreement for lease is to provide a framework for the future lease agreement, which will set out the specific terms and conditions of the lease. The agreement for lease typically includes provisions that outline the following: 1. Parties: The agreement for lease identifies the parties involved, namely the landlord and the tenant. 2. Property: The agreement for lease describes the property to be leased, including its location, size, and any specific features or amenities. 3. Term: The agreement for lease specifies the length of the lease term, including any renewal options or break clauses. 4. Rent: The agreement for lease outlines the amount of rent, when it is due, and the payment method. It may also include provisions for rent increases or reviews. 5. Conditions precedent: The agreement for lease may include conditions that must be satisfied before the lease is granted, such as obtaining planning permission or building regulations approval. 6. Obligations of the parties: The agreement for lease sets out the responsibilities of both the landlord and the tenant, including any obligations for repairs, maintenance, insurance, and compliance with relevant laws and regulations. The purpose of an agreement for lease is to create a binding commitment between the landlord and tenant to enter into a future lease agreement, subject to the satisfaction of any conditions precedent. It can be useful in situations where the tenant needs to undertake certain works or secure planning permission before the lease can be granted. The agreement for lease provides a framework for the future lease agreement, which will be based on the terms and conditions outlined in the agreement for lease.
deduction of title[edit | edit source]
Deduction of title is a legal process in English leasehold real estate law and practice that is used to investigate the history of ownership of a property before it is sold or leased. The purpose of deduction of title is to ensure that the person who is selling or leasing the property has legal ownership and the right to sell or lease it.
The process of deduction of title typically involves the following steps:
1. Obtaining the title deeds: The title deeds are a collection of legal documents that provide evidence of the ownership of the property. The seller or landlord must provide the title deeds to the buyer or tenant.
2. Examining the title deeds: The buyer or tenant must examine the title deeds to ensure that they are complete and accurate, and that there are no legal or financial issues that may affect the ownership or occupation of the property.
3. Searches: The buyer or tenant may carry out searches with relevant authorities, such as the Land Registry, local authority, and environmental agencies, to obtain further information about the property and its history.
4. Investigating any issues: If there are any issues with the title deeds or searches, the buyer or tenant must investigate them and resolve them before proceeding with the transaction.
5. Deduction of title report: Once the investigation is complete, the buyer or tenant will produce a report that summarizes the findings and confirms that they are satisfied with the title to the property.
The purpose of deduction of title is to ensure that the buyer or tenant can have confidence in the ownership and occupation of the property, and that there are no legal or financial issues that may cause problems in the future. It is an important step in the process of buying or leasing a property, and should be carried out by legal professionals who are experienced in English leasehold real estate law and practice.
pre-contract enquiries and searches[edit | edit source]
Pre-contract enquiries and searches are an important part of the process of buying or leasing a property. They are used to obtain information about the property and its history before the transaction is completed. The purpose of pre-contract enquiries and searches is to identify any potential issues or risks associated with the property, and to enable the buyer or tenant to make an informed decision about whether to proceed with the transaction.
Pre-contract enquiries typically involve a series of questions that are sent by the buyer or tenant to the seller or landlord, usually through their solicitors. The questions are designed to elicit information about the property, including its ownership, history, condition, and any legal or financial issues that may affect it. The seller or landlord is obliged to provide truthful and accurate answers to these enquiries.
Searches are a separate process that involves obtaining information from public records and other sources, such as the Land Registry, local authority, and environmental agencies. The purpose of searches is to obtain information about the property and its surroundings, including any planning permission, building regulations, environmental issues, and other matters that may affect the property.
Common types of searches include:
1. Local authority searches: This provides information about planning permission, building regulations, highways, and other local issues that may affect the property.
2. Land Registry searches: This provides information about the ownership and title of the property, including any restrictions or charges that may affect it.
3. Environmental searches: This provides information about any environmental issues that may affect the property, such as contamination, flooding, and radon gas.
The results of pre-contract enquiries and searches are used by the buyer or tenant to make an informed decision about whether to proceed with the transaction. If any issues are identified, the parties may negotiate to resolve them or may decide to withdraw from the transaction.
pre-completion formalities[edit | edit source]
Pre-completion formalities are the legal requirements that must be fulfilled before a leasehold property can be sold or transferred to a new owner or tenant. These formalities typically involve a series of legal documents and procedures that protect the interests of both parties involved in the transaction. The following are some of the key pre-completion formalities that are typically required:
- Exchange of contracts: Before completion, the parties must exchange contracts, which sets out the terms of the sale or transfer. Once the contracts are exchanged, both parties are legally bound to complete the transaction.
- Payment of deposit: The buyer is usually required to pay a deposit on exchange of contracts, which is usually 10% of the purchase price. This deposit is held by the seller's solicitor until completion.
- Obtaining clearances: Before completion, the seller's solicitor must obtain various clearances, such as a Land Registry Search, a local authority search, and an environmental search, to ensure that the property is free from any legal or environmental issues.
- Completion statement: The seller's solicitor must provide a completion statement to the buyer's solicitor, which sets out the final amount due on completion, taking into account any adjustments for rent, service charges, and other expenses.
- Transfer of ownership: On completion, the parties will execute a transfer deed, which transfers ownership of the property from the seller to the buyer.
- Registration: After completion, the buyer's solicitor must register the transfer of ownership with the Land Registry, which confirms the buyer's ownership of the property.
completion and post-completion steps[edit | edit source]
Procedural steps for the assignment of a lease[edit | edit source]
deduction of title[edit | edit source]
In English leasehold real estate law and practice, the deduction of title refers to the process of examining and verifying the legal ownership and rights associated with a leasehold property when it is being assigned or transferred from one party (the assignor) to another (the assignee). The purpose of this process is to ensure that the assignee receives a valid and marketable title to the leasehold property. Here's an overview of the deduction of title process for the assignment of a lease:
- Initial Examination: The assignee's solicitor will review the lease documentation, including the original lease agreement and any subsequent documents that may have modified or amended the terms of the lease. This examination is conducted to understand the key provisions and restrictions contained in the lease.
- Investigation of Title: The solicitor will conduct searches and investigations to confirm the legal ownership of the leasehold property and the validity of the lease. This includes verifying the landlord's ownership of the freehold or superior leasehold interest, confirming any subleases or superior interests affecting the property, and checking for any encumbrances or third-party rights that may affect the assignment.
- Review of Title Documents: The solicitor will examine the title documents related to the leasehold property, such as the Land Registry entries, title deeds, and any legal charges or mortgages registered against the property. This is done to ensure that the assignor has the legal authority to assign the lease and that there are no restrictions or adverse entries that may affect the assignee's rights.
- Compliance with Lease Covenants: The solicitor will check whether the assignor has complied with the obligations and covenants under the lease, such as payment of rent, service charges, and compliance with repair and maintenance obligations. Any breaches or outstanding liabilities may need to be addressed and resolved before the assignment can proceed.
- Consent of the Landlord: The assignee may need to obtain the consent of the landlord before the assignment can take place. The solicitor will confirm whether the lease requires the landlord's consent, and if so, assist in obtaining the necessary approvals and formalities from the landlord.
- Assignment Documentation: Once the deduction of title process is complete and any necessary approvals are obtained, the solicitor will prepare the assignment documentation, including the assignment deed or assignment agreement. This document transfers the leasehold interest from the assignor to the assignee and outlines the terms and conditions of the assignment.
The deduction of title process is crucial to protect the assignee's interests and ensure that they receive a valid and marketable title to the leasehold property. It helps identify any potential issues or defects in the title and allows for their resolution before the assignment is finalized. It is advisable for both parties to seek legal advice to navigate the deduction of title process and ensure a smooth and legally valid assignment of the lease.
pre-contract enquiries and searches[edit | edit source]
In English leasehold real estate law and practice, pre-contract enquiries and searches are an important part of the due diligence process when assigning a leasehold property from one party (the assignor) to another (the assignee). These enquiries and searches aim to gather information and assess potential risks associated with the leasehold property before entering into a binding contract. Here's an overview of the pre-contract enquiries and searches involved in the assignment of a lease:
- Enquiries of the Assignor: The assignee's solicitor will send a set of standard pre-contract enquiries to the assignor's solicitor. These enquiries seek information about various aspects of the lease, such as the terms, restrictions, and obligations under the lease, any disputes or litigation related to the property, ongoing or upcoming major works, service charge provisions, and any known breaches or disputes with the landlord or other tenants.
- Lease Review: The assignee's solicitor will carefully review the lease documentation provided by the assignor to understand its terms and provisions. They will examine the rights and responsibilities of both the assignor and the assignee, the length of the lease, any rent review provisions, break clauses, repair and maintenance obligations, use restrictions, and other important clauses that may affect the assignee's interests.
- Searches: Various searches are typically conducted to gather information about the property and its surrounding area. The most common searches include: a. Local Authority Search: This search provides information about planning permissions, building regulations, environmental matters, highways, and other matters regulated by the local authority. b. Land Registry Search: This search confirms the current registered owner of the leasehold property, any registered charges or mortgages, and any other registered interests or restrictions affecting the property. c. Drainage and Water Search: This search provides information about the water supply, drainage systems, and any water-related issues affecting the property. d. Environmental Search: This search identifies any potential environmental risks or contamination associated with the property and the surrounding area. e. Chancel Repair Liability Search: This search determines if the property is subject to potential liability for contributing to the repair costs of the local parish church.
- Additional Searches: Depending on the specific circumstances of the property and the transaction, additional searches may be necessary. These can include mining searches, flood risk assessments, or other specific searches relevant to the property's location and characteristics.
- Leasehold Management Pack: The assignee's solicitor may request a leasehold management pack from the landlord or the managing agent. This pack typically includes information about service charge accounts, building insurance, ground rent payments, maintenance obligations, and other relevant details.
The purpose of these pre-contract enquiries and searches is to obtain relevant information about the leasehold property, identify any potential issues or risks, and ensure that the assignee can make an informed decision about proceeding with the assignment. It is crucial to seek legal advice and conduct thorough due diligence during this process to protect the assignee's interests and avoid any unexpected liabilities or complications associated with the leasehold property.
landlord’s consent[edit | edit source]
In English leasehold real estate law and practice, the landlord's consent is a crucial requirement for the assignment of a lease. When a tenant wishes to transfer their leasehold interest in a property to a new party (the assignee), they typically need to obtain the landlord's consent before the assignment can take place. Here's an explanation of the landlord's consent process:
- Review of Lease Terms: The assignor (the existing tenant) and their solicitor will review the lease agreement to determine if it contains any specific provisions regarding the assignment and the requirement for landlord's consent. The lease may specify the conditions under which the landlord's consent is required and the process to follow.
- Application for Consent: The assignor or the assignee, usually through their solicitor, will make a formal application to the landlord seeking consent for the assignment. The application will include relevant information about the proposed assignee, such as their financial position, business references (if applicable), and any other information required by the lease.
- Landlord's Evaluation: The landlord will evaluate the application and consider various factors before granting or refusing consent. These factors may include the financial stability of the proposed assignee, their suitability as a tenant, their intended use of the property, and their ability to comply with the lease obligations.
- Consent Terms and Conditions: If the landlord decides to grant consent, they may impose certain terms and conditions on the assignment. These conditions could include the payment of a fee, the provision of a guarantee or additional security, compliance with specific obligations, or any other requirements deemed necessary by the landlord.
- Documentation: Once the landlord has granted consent, the assignor and assignee, along with their respective solicitors, will prepare the necessary documentation to formalize the assignment. This typically includes an assignment deed or assignment agreement that transfers the leasehold interest from the assignor to the assignee.
It's important to note that the landlord's consent is usually subject to the terms and conditions outlined in the lease agreement. Failing to obtain the landlord's consent when required, or proceeding with an assignment without obtaining consent, can lead to breaches of the lease and potential legal consequences for both the assignor and assignee. It is advisable for both the assignor and assignee to seek legal advice, carefully review the lease terms, and follow the prescribed process to obtain the landlord's consent. This helps ensure compliance with the lease obligations and protects the rights and interests of all parties involved in the assignment of the leasehold property.
deed of assignment and covenants for title[edit | edit source]
pre-completion formalities[edit | edit source]
authorised guarantee agreement[edit | edit source]
completion and post-completion steps[edit | edit source]
Licence to assign and licence to underlet[edit | edit source]
purpose of and who prepares the draft[edit | edit source]
privity of contract and how the licence deals with this[edit | edit source]
key provisions in the licence[edit | edit source]
Leasehold covenants[edit | edit source]
liability on covenants in leases[edit | edit source]
- leases granted before 1 January 1996
- leases granted on or after 1 January 1996
Remedies for breach of a leasehold covenant[edit | edit source]
action in debt[edit | edit source]
forfeiture[edit | edit source]
Commercial Rent Arrears Recovery[edit | edit source]
pursue guarantors and/or rent deposit[edit | edit source]
specific performance[edit | edit source]
damages[edit | edit source]
self-help/Jervis v Harris clause[edit | edit source]
Termination of a lease[edit | edit source]
effluxion of time[edit | edit source]
notice to quit[edit | edit source]
surrender[edit | edit source]
merger[edit | edit source]
Security of tenure under a business lease[edit | edit source]
Landlord and Tenant Act 1954 (Part II)[edit | edit source]
application of 1954 Act[edit | edit source]
renewal lease by the tenant[edit | edit source]
termination by the landlord[edit | edit source]
landlord’s grounds of opposition[edit | edit source]
terms of new lease[edit | edit source]
availability of compensation[edit | edit source]
Core principles of planning law[edit | edit source]
Statutory definition of “Development”[edit | edit source]
In English planning law, the statutory definition of "development" is provided in section 55 of the Town and Country Planning Act 1990. The definition is broad and encompasses a wide range of activities, including: 1. The carrying out of building, engineering, mining or other operations in, on, over or under land. 2. The making of any material change in the use of buildings or other land. 3. The subdivision of land. 4. The erection of a building. 5. The alteration or enlargement of an existing building. 6. The installation, alteration or replacement of a service or fitting in or on land or buildings. The definition of development is further expanded by the Town and Country Planning (General Permitted Development) Order 2015, which sets out a number of specific activities that are considered to be permitted development and therefore do not require planning permission. These include minor alterations and extensions to existing buildings, certain changes of use, and the installation of certain types of solar panels and antennas. It is important to note that the definition of development is broad and includes many different activities. Any proposed development that falls within the definition will require planning permission from the local planning authority, unless it is specifically permitted under the General Permitted Development Order or other legislation.
Matters that do not constitute “Development”[edit | edit source]
In English planning law, there are certain activities that do not constitute "development" and therefore do not require planning permission. These are set out in the Town and Country Planning Act 1990 and include: 1. Maintenance and repair of existing buildings and structures, provided that the work does not involve a material change in the external appearance of the building. 2. Works required to comply with a statutory obligation, such as a building regulation or health and safety requirement. 3. Works that do not materially affect the external appearance of a building or structure, such as internal alterations. 4. Certain changes of use, such as changing a shop to a bank or a restaurant to a cafe, where the new use falls within the same "use class" as the old use. 5. Temporary uses of land or buildings for up to 28 days in any calendar year, such as fairs, circuses or markets. 6. Changes of use of certain types of agricultural land or buildings, provided that certain conditions are met. It is important to note that while these activities do not require planning permission, they may still be subject to other regulatory requirements, such as building regulations or environmental permits. Overall, the matters that do not constitute "development" under English planning law are limited and specific. Any proposed activity that does not fall within these exemptions will require planning permission from the local planning authority.
Matters that do not require express planning permission[edit | edit source]
In English planning law, there are certain matters that do not require express planning permission and are considered to be permitted development. These are set out in the Town and Country Planning (General Permitted Development) Order 2015, and include: 1. Certain minor alterations and extensions to existing buildings, subject to certain limitations on size, location, and design. 2. Changes of use of existing buildings within the same "use class", subject to certain limitations and conditions. 3. Certain small-scale works, such as the installation of solar panels and antennas, subject to certain limitations and conditions. 4. Certain works to highways, such as the installation of signs, road markings, and traffic signals, subject to certain limitations and conditions. 5. Certain temporary uses of land, such as for filming, telecommunications infrastructure, and agricultural purposes, subject to certain limitations and conditions. It is important to note that even though these matters do not require express planning permission, they may still be subject to other regulatory requirements, such as building regulations, environmental permits, or listed building consent. In addition, some types of permitted development may require prior approval from the local planning authority before they can proceed. For example, certain types of minor alterations and extensions to existing buildings require prior approval for their design and external appearance. Overall, the matters that do not require express planning permission under English planning law are limited and subject to certain conditions and limitations. It is important to seek professional advice to ensure that any proposed development or works are permitted development and comply with all relevant regulations and requirements.
Building regulation control[edit | edit source]
In English planning law, there are certain matters that do not require express planning permission and are considered to be permitted development. These are set out in the Town and Country Planning (General Permitted Development) Order 2015, and include: 1. Certain minor alterations and extensions to existing buildings, subject to certain limitations on size, location, and design. 2. Changes of use of existing buildings within the same "use class", subject to certain limitations and conditions. 3. Certain small-scale works, such as the installation of solar panels and antennas, subject to certain limitations and conditions. 4. Certain works to highways, such as the installation of signs, road markings, and traffic signals, subject to certain limitations and conditions. 5. Certain temporary uses of land, such as for filming, telecommunications infrastructure, and agricultural purposes, subject to certain limitations and conditions. It is important to note that even though these matters do not require express planning permission, they may still be subject to other regulatory requirements, such as building regulations, environmental permits, or listed building consent. In addition, some types of permitted development may require prior approval from the local planning authority before they can proceed. For example, certain types of minor alterations and extensions to existing buildings require prior approval for their design and external appearance. Overall, the matters that do not require express planning permission under English planning law are limited and subject to certain conditions and limitations. It is important to seek professional advice to ensure that any proposed development or works are permitted development and comply with all relevant regulations and requirements.
Enforcement: time limits and the range of local planning authority’s enforcement powers[edit | edit source]
Under English planning law, the local planning authority has enforcement powers to take action against breaches of planning control. These powers are set out in the Town and Country Planning Act 1990 and the Planning (Listed Buildings and Conservation Areas) Act 1990. The local planning authority has the power to take enforcement action within certain time limits. The time limits for taking enforcement action depend on the nature of the breach of planning control. The time limits are as follows: 1. For breaches of planning control involving operational development (such as the construction of a building or the carrying out of engineering operations), the time limit for taking enforcement action is four years from the date of the breach. 2. For breaches of planning control involving a change of use of land or buildings, the time limit for taking enforcement action is ten years from the date of the breach. 3. For breaches of planning control involving the failure to comply with a condition attached to a planning permission, the time limit for taking enforcement action is ten years from the date of the breach. The local planning authority's enforcement powers include: 1. Enforcement notices: These require the person responsible for the breach of planning control to take certain actions within a specified time period to remedy the breach. 2. Stop notices: These require the person responsible for the breach of planning control to stop the activity that is causing the breach. 3. Breach of condition notices: These require the person responsible for the breach of planning control to comply with a planning condition attached to a planning permission. 4. Injunctions: These are court orders requiring the person responsible for the breach of planning control to take certain actions or to refrain from taking certain actions. If the person responsible for the breach of planning control fails to comply with an enforcement notice or other enforcement action, the local planning authority may take further legal action, such as prosecution or the carrying out of the works required to remedy the breach themselves. Overall, the local planning authority's enforcement powers under English planning law are extensive and can be used to ensure compliance with planning control. It is important for property owners and developers to be aware of their obligations under planning law and to seek professional advice to avoid potential breaches of planning control.
Taxation – property[edit | edit source]
Stamp Duty Land Tax and Land Transaction Tax:
basis of charge in both England and Wales for: residential property non-residential freehold property. Value Added Tax:
basis of charge: what constitutes a taxable supply differences between standard, exempt and zero-rated supplies reasons why a client would make an option to tax and the effect that has. Capital Gains Tax:
basis of charge principal private dwelling-house exemption.