RICS APC Property Law & UK Land Law 2

Question 1

What is the primary purpose of the Landlord and Tenant Act 1954 (Part II) for commercial surveyors?

Accepted Answer

It gives business tenants the right to renew their lease at the end of the term and protects them from arbitrary eviction

Answer

Part II of the Landlord and Tenant Act 1954 gives qualifying business tenants statutory security of tenure — the right to remain in occupation at the end of their lease and to apply to the court for a new tenancy on reasonable terms. Landlords can only oppose renewal on specified statutory grounds. This is fundamental knowledge for commercial property surveyors.

Question 2

What does 'contracting out' of the Landlord and Tenant Act 1954 mean in a commercial lease?

Accepted Answer

The landlord and tenant agree, following a prescribed statutory procedure, to exclude the tenant's right to security of tenure under the Act

Answer

Contracting out (or 'exclusion') of the 1954 Act means the parties agree that the tenant will have no right to renew the lease at the end of the term. The landlord must serve a warning notice and the tenant must make a statutory declaration before the lease is granted. This is common for short-term leases or where the landlord needs certainty of possession.

Question 3

What is a 'break clause' in a commercial lease and what conditions typically govern its exercise?

Accepted Answer

A clause allowing one or both parties to terminate the lease before the end of the term, often conditional on full compliance with lease obligations

Answer

A break clause gives one or both parties the right to end the lease at a specified date by giving notice. Exercise of break clauses is typically conditional on the tenant being up to date with rent, having given the correct notice period, and in some cases having complied with all lease obligations. Courts have strictly interpreted these conditions — even minor breaches have invalidated break notices.

Question 4

Under the Leasehold Reform Act 1967 (as amended), what right does a long leaseholder of a house have?

Accepted Answer

The right to purchase the freehold of their house (enfranchisement) or to extend their lease by 50 years on prescribed terms

Answer

The Leasehold Reform Act 1967 gives qualifying long leaseholders of houses the right to acquire the freehold (enfranchisement) or extend their lease by 50 years at a ground rent of nil. This is a significant right that surveyors advising either landlord or tenant must understand, as it fundamentally affects the value of both the freehold and the leasehold interests.

Question 5

What are 'overriding interests' in registered land and why are they important for surveyors?

Accepted Answer

Rights that bind a purchaser of registered land even though they are not shown on the register, such as the rights of persons in actual occupation — surveyors must investigate beyond the register

Answer

Overriding interests (now called 'unregistered interests which override' under the LRA 2002) bind a registered proprietor even though they are not visible on the register. Key examples include legal easements, the rights of persons in actual occupation, and certain local land charges. Surveyors and their clients' solicitors must investigate beyond the register to identify these hidden burdens.

RICS APC Practice Test

RICS APC Practice Test

RICS APC Property Law & UK Land Law 2