The relationship between residential and commercial Landlords and Tenants is governed by law and the terms of the particular lease or tenancy agreement entered into between the parties. Short term agreements (usually from a few months to a couple of years) are generally referred to as tenancy agreements and are generally determinable or can be ended by either party on relatively short notice. Longer term agreements are generally referred to as leases which may have terms of a couple of years to hundreds of years depending on the circumstances and nature of the property concerned. They can only be determined or ended in particular ways and in certain circumstances.
Issues which can arise between landlords (or freeholders and managing agents) and tenants (or leaseholders) can include:-
- rent arrears
- service charge arrears or disagreement
- breaches of covenant and enforcement
- forfeiture of leases or re-entry by the landlord
- repairs and maintenance obligations
- notices to quit
- leasehold enfranchisement or taking over the freehold by the leaseholders
- extension or renewal of lease terms
- variation of the lease
Many of these issues are regulated by the law and particular procedures need to be followed for the best protection of both parties. Very often, the leaseholder’s mortgage lender may also have an interest in how proceedings are dealt with as any adverse effect on the leasehold title will have a detrimental effect on the value of the leasehold title, and therefore affect the value of the equity in the property.