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L&T: residential
Enfranchisement - business

When the right to enfranchise (to buy the freehold) was introduced by LRA 1967, there was a requirement that T had occupied the premises as a ‘residence’ for at least five years. That five-year period was reduced to three years in 1993, and the residence requirement was largely abolished by CLRA 2002.

Under CLRA 2002 the standard test is now one of two years of ownership (not residence). As far as businesses are concerned, the right to enfranchise does not apply to an LTA 1954 business tenancy, unless T has been occupying the ‘house’ as his ‘residence’ for at least two years (which would be impossible for a company).

Set aside - ‘trial’?

A recent CA decision has radically altered the landscape in the world of set-aside applications. It has done this by focusing on the meaning of ‘trial’, and the result is that what many of us have always thought of as a trial, will not be a trial at all. The case involved the possession claim but is of much wider importance.

Homelessness - priority need

The categories of priority in both England and Wales are:

  • pregnant woman (and partner);
  • has dependent children;
  • vulnerable due to old age, mental illness of physical disability, or special reason (or partner of such a person);
  • homeless due to an emergency (eg flood, fire).
Injunction - Article 6

Until recently, the view of the ECHR was that Article 6 would not be relevant at an injunction, or other interim proceeding, because it would not be a conclusive ‘determination of a civil right’. Thus, Article 6, and other human rights issues, would only be relevant at a full trial.

Service charges - consultation

The Commonhold and Leasehold Reform Act 2002 has inserted new service charge consultation procedures into LTA 1985.

Consultation is required in respect of ‘qualifying works’ (ie ‘works on a building or any other premises’), or ‘a qualifying long-term agreement’ (ie an agreement that will last more than 12 months). If the works will require a contribution from any one T which exceeds the relevant threshold (£250 for qualifying works; £100 for qualifying long-term agreements) then the consultation provisions apply. There are three separate procedures:

Enfranchisement - low rent test

Under LRA 1967, the right to enfranchise (or to have a lease extension) was originally limited to leases where T was paying a ‘low rent’.

Tenancy deposit - non-supply of information

Under the Tenancy Deposit Scheme, L has 14 days in which to deposit the money with an authorised scheme, and 14 days to give ‘prescribed information’ to T. Failure on either account means that the court must order L to pay T a sum of money equal to three times the amount of the deposit.

Apportionment - three methods

There are three main ways to apportion rent on completion. All involve spreading the payment evenly over the period in respect of which the rent is paid. But, each method results in different amounts:

Commission - Foxtons

In an important decision, the High Court has ruled that various commission clauses in Foxtons’ contracts with residential Ls are unenforceable. It is reckoned that there are around 15,000 letting agents using similar conditions, and accordingly this decision is important for the whole residential lettings industry. The end result is that many of these agents will face claims for refunds.

Human rights - RSLs

The CA has held that registered social landlords have to consider their T’s human rights when exercising housing management and housing allocation functions.

Tolerated trespass - abolition

Tolerated trespass has been abolished as from 20 May for the vast majority of tenants.

Assured shortholds - £25,000!

A tenancy cannot be an assured shorthold if the rent exceeds £25,000 (a maximum sum that was fixed in 1990). The logic at the time was to exclude luxury lets. However, if the £25,000 threshold had been indexed to RPI since 1990 then it would now be in the region of £52,500.

Tenancy - minor

The Homelessness (Priority Need) Order 2002 conferred priority need status on the overwhelming majority of children aged 16 and 17, who are eligible for assistance from the HA. Accordingly, an increasing number of tenancies have been granted to minors since 2002.

Enfranchisement - ‘house’
Enfranchisement under LRA 1967 is available when T has a lease of a ‘house’ (ie ‘any building designed or adapted for living in and reasonably so-called’).
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