Property Management and Agency
SECTION A: PROPERTY MANAGEMENT (Answer TWO questions from this section)
Q1. Critically appraise the contribution which the property industry is making towards climate change and the benefits of introducing green lease clauses. Is the property industry doing enough to introduce green lease clauses in the UK or does the
government need to legislate for change? 100%
100%
Q2. “During the 1980’s boom period, many retailers paid the service charges demanded of them, with few questions asked. However, as recession affected the profitability of shop units within centres, retailers showed growing concerns over the level of service charge invoiced. At this time, communication between landlord and Tenant was poor, with little demonstration of value for money being obtained.
Increasingly, disputes over the level of service charge grew from occupiers, with requests for greater clarification of expenditure, demands for better value, and that the services supplied by the owner are indeed relevant to the particular development.” (CBRE).
How does the RICS Guidance Note “Service Charges in Commercial Property (1st Ed, 2018)” seek to address these problems?
SECTION B: LANDLORD & TENANT LAW (Answer TWO questions from this section)
Q5. Nottingham Property Group (NPG) recently completed the refurbishment of a mixed–use development site in Nottingham called Trent Development. The site comprises of mix of residential units including apartments and townhouses built around a small square of commercial premises. Trent Development has a range of arrangements with the occupiers of these and the Nottingham Property Group) have asked you to advise them on the type of agreement each occupier has.
Specifically, they need to know whether the occupiers have a lease or a license, and whether any leases are legal or equitable, and fixed–term or periodic.
(a) In the small square of commercial premises is a convenience store run by the Express Shopping (“Express Shopping Ltd”). The owners entered into a written agreement with OGM for the use of the commercial unit for ten years from the 1st of April 2021. The agreement provided that Express Shopping would have sole use of the commercial unit in exchange for an annual license fee of £150,000 to be paid in four instalments on the usual quarter days. 15%
(b)Catherine, a final year student has just moved into Number One, a three– bedroom apartment, within Trent Development with two of her course mates.
They all moved in on the same day at the start of term.
They share a communal, open plan living room/kitchen but have their own bedrooms with en–suite bathrooms each. They each have keys to the front door of the property with NPG also retaining a key, which is held by the security team.
Catherine’s and her course mates all signed identical agreements with NPG states that they must jointly pay NPG a monthly licence fee of £1,500 which is inclusive of all utility bills. The agreements state that each housemate has use of the “kitchen, living room, bathrooms and bedrooms in common, without the right to exclusive possession of any part of this house.” The agreement states that NPG can move in additional licencees as they see fit.40%
(c) David lives in Number Two, a two–bedroom apartment within Trent Development, where he is the property manager. His role involves organising trades people for any repairs or maintenance needed and scheduling the security and cleaning services provided within the development. He has a separate office within Trent Development and works from 9–5. He has sole exclusive use of the premises, however the agreement for the apartment states that he remains a licencee as a service tenancy.15%
(d)Jos has recently moved into a four bedroom townhouse within Trent Development, which is occupied by two other young professionals. Jos signed and identical agreement as the existing tenants with NPG stating that he must pay a monthly licence fee of £350 for his use of the “kitchen, living room, bathroom and bedroom, without the exclusive possession of any part of this house.” The agreements all stated that NPG have the right to move in other licensees as they see fit, as they had done with Jos. NPG retain a key to the front door, which is held by the security team in case of emergency and is provided to a cleaner once a week who is responsible for cleaning the living room, kitchen and hallways.30%
Q7. On 14th September 2005 Jamie granted Ainsley a 25–year lease on a manufacturing premises, which Ainsley has been using to produce premium pre– cooked food delivery. The lease on the property contains a fully qualified covenant
against assignment.
Ainsley has recently been offered a job with a major supermarket designing their ready meals but it will require a full–time commitment. His colleague Deliah has
discussed taking over the property as he had planned to start his own company to fill the gap in the market the Ainsley was leaving. Ainsley approached Jamie to discuss whether she would be open to granting consent to the assignment.
Jamie is apprehensive of the prospect of Deliah taking over as they were previously colleagues but had a falling out and he would not like to work in close proximity to her. Furthermore, he knows that Deliah has previously been taken to court for breach of contract in relation to previous rental agreements. He suggests to Ainsley that he might be persuaded to grant his consent for the assignment if he were to pay an additional 3 months’ rent. Following the conversation Ainsley is unsure about her legal position and seeks your advice.
(a) Explain what a fully qualified covenant against assignment is.
20%
(b) What are Jamie’s duties now that he has received the request for consent to the proposed assignment? Based on the information that you are given, is Ainsley likely to obtain Jamie’s consent?
20%
(c) If the assignment does go ahead (with Jamie’s consent) and Deliah fails to keep up with the rent payments, explain, with reference to the relevant law, who Jamie will be able to pursue for the rent. Include advice on any procedural steps that Jamie must take. 40%
(d) How would your advice in (c) differ if the lease had been granted in 1995?
20%
