SQE1: Structure and Content of a Lease Flashcards

Flashcards covering the vocabulary and core legal principles of commercial lease structures, covenants, and statutory controls relevant to the SQE1 syllabus.}```量系统已经处理完毕。符合要求。```json{

Prescribed clauses

Mandatory standard clauses required for leases dated on or after 19 June 2006 created out of registered land, summarizing vital information for the Land Registry.

Fixed term lease

A tenancy granted for a specific period of time (weeks, months, or years) that expires automatically at the end of the term without notice.

Periodic tenancy

A tenancy that continues indefinitely from one period to another (e.g., month to month) and is terminated by notice equal to the length of one period.

Tenancy at will

A flexible, indefinite arrangement where a tenant occupies property with permission but either party can terminate the tenancy at any time.

Absolute covenant

A lease provision that completely prohibits the tenant from carrying out a specific action, giving the landlord total discretion to allow it or not.

Qualified covenant

A lease provision that prohibits an action unless the tenant obtains the landlord's prior consent.

Fully qualified covenant

A provision allowing a tenant to perform an action with the landlord's consent, provided that such consent is not unreasonably withheld.

FRI lease

A 'full repairing and insuring' lease where the landlord receives a clear rental profit because the tenant is responsible for all costs related to repairs, maintenance, and insurance.

Proudfoot v Hart [1890]

Common law authority stating that property need only be put into such a state of repair as renders it fit for the occupation of a reasonably minded tenant of the class likely to take it.

Insured Risks

Specific perils defined in the lease (such as fire, storm, and flood) against which the landlord covenants to insure the property.

Full reinstatement value

The amount for which a property must be insured to cover total rebuilding, including demolition costs, site clearance, professional fees, and inflation.

Insurance rent

A sum reserved as rent, paid by the tenant to the landlord, to cover the buildings insurance premium and loss of rent insurance.

Rent suspension

A clause allowing the tenant to stop paying rent, or a fair proportion of it, if the property is rendered unfit for occupation due to damage by an insured risk.

Section 3 Landlord and Tenant Act 1927

A statutory procedure enabling a tenant to carry out 'improvements' even if the lease contains an absolute prohibition against alterations.

Licence to alter

A formal document used by a landlord to grant consent for a tenant to carry out alterations, often containing conditions for reinstatement at the end of the term.

Section 19(2) Landlord and Tenant Act 1927

A statute implying into qualified covenants for improvements that the landlord's consent cannot be unreasonably withheld.

Alienation

A generic term for the methods by which a tenant disposes of their interest in a property, including assignment, underletting, charging, or sharing possession.

Assignment

The transfer of the unexpired residue of a lease from the current tenant (assignor) to a new owner (assignee).

Underletting

Also known as subletting; the creation of a new, shorter lease (underlease) by the tenant out of their own headlease.

Section 19(1)(a) Landlord and Tenant Act 1927

A provision that implies a proviso into qualified covenants against alienation that the landlord's consent is not to be unreasonably withheld.

Section 19(1A) Landlord and Tenant Act 1927

An amendment allowing landlords and tenants to agree in advance the conditions or circumstances in which withholding consent for assignment is deemed reasonable.

Authorised Guarantee Agreement (AGA)

An agreement where the outgoing tenant (assignor) guarantees the performance of the lease covenants by the incoming tenant (assignee).

Section 1 Landlord and Tenant Act 1988

A statute requiring a landlord to give a written decision on an alienation consent application within a reasonable time, providing reasons if consent is withheld.

Usual quarter days

The historic dates for quarterly rent payments: 25 March, 24 June, 29 September, and 25 December.

Open market rent review

The most common mechanism for reassessing annual rent based on a hypothetical assessment of what the property would be worth if let on the open market at the review date.

Upwards-only rent review

A provision ensuring that the rent can only increase or stay the same at review, but never decrease, even if market values have fallen.

Rent review assumptions

Instructions to a valuer to assume certain facts during a hypothetical letting, such as that the tenant has complied with all lease obligations.

Rent review disregards

Instructions to a valuer to ignore certain facts, such as the tenant's current occupation or any goodwill generated by the tenant's business.

RICS Code for Leasing Business Premises

A professional statement effective from September 2020 that contains mandatory requirements for RICS members to ensure fairness in lease negotiations.