Landlord notices

• What is the purpose of a landlord's section 25 notice?

  To inform the tenant when the current tenancy will end.
• When must a section 25 notice be served?

  No less than 6 months and no more than 12 months before the date of termination.
• What form must a section 25 notice take?

  It must be in the form prescribed by statute.
• What does a 'friendly' section 25 notice indicate?

  That the landlord is willing to renew the lease after the termination date.
• What does a 'hostile' section 25 notice indicate?

  That the landlord intends to oppose the renewal of the lease.
• Why would a landlord serve a friendly section 25 notice?

  • To guarantee rental income
  • To fix a market rent in a rising market
• What is the purpose of a rent review in a lease?

  To ensure the tenant pays a market rent during the holding over period.
• If a protected tenant is paying £20,000 per year and the rent is reviewed to £22,000 on the last day of the term, what will they pay while holding over?

  £22,000 per year.
• What are the seven grounds on which a landlord can oppose renewal of a tenant's lease?

  1. Persistent and serious breach of repairing obligation
  2. Persistent delay in paying rent
  3. Serious and persistent other breaches of covenants
  4. Suitable alternative accommodation offered
  5. Intention to demolish or reconstruct premises
  6. Intention to occupy premises for itself
  7. Rarely used ground
• What must a landlord do to substantiate their ground for opposing renewal?

  Provide evidence supporting the ground they are relying on.
• What is the difference between mandatory and discretionary grounds?

  A mandatory ground requires the court to grant possession if established, while discretionary grounds depend on the court's decision.
• What is a compensatory ground?

  A ground that may entitle the tenant to compensation if it relies on no fault of the tenant.
• How is compensation calculated for a tenant who has occupied the premises for less than 14 years?

  At 1x the rateable value.
• How is compensation calculated for a tenant who has occupied the premises for 14 years or more?

  At 2x the rateable value.
• What is the rateable value based on?

  The estimated annual rental value of the premises fixed by the local authority.
• What are the details of the grounds for opposing renewal?

  • Ground (a): Breach of tenant repairing obligation - Discretionary, not compensatory
  • Ground (b): Persistent delay in paying rent - Discretionary, not compensatory
  • Ground (c): Other substantial breaches - Discretionary, not compensatory
  • Ground (d): Suitable alternative accommodation - Mandatory, not compensatory
  • Ground (f): Intention to demolish or reconstruct - Mandatory, compensatory
  • Ground (g): Intention to occupy premises - Mandatory, compensatory
• What is the summary of the landlord's notice process?

  • Section 25 notice specifies termination date
  • Notice can be friendly or hostile
  • Possession can only be recovered on statutory grounds
  • Court discretion applies to discretionary grounds
  • Compensation may be required for some grounds