Deferment Rate Leasehold Enfranchisement | Ground Rent Valuation

deferment rate leasehold enfranchisement Generally a 'deferment rate' may be defined as "the rate of return that is used to defer or ‘discount’ a future value to arrive at the present value". For example, if a property is estimated to have a capital value (at today’s prices) of £1,000,000 in five years, then its present value may be assessed as £1,000,000 × {1/[(1 + 0.08)5]} = £567,400, where 0.08 or 8% is the deferment rate, i.e. the price is ‘adjusted’ or ‘deferred’ at a compound rate 8% per … [Read more...]

Right to Manage Leasehold Property | Leasehold Reform

right to manage leasehold property A right available to “qualifying tenants” to acquire and exercise the right to manage two or more flats within a self-contained building or part of a building that is self-contained (Commonhold and Leasehold Reform Act 2002, Part 2, Chapter 1). A self-contained building is one that is structurally detached. A self-contained part of a building must be a vertical division of the building, The structure of the building must be capable of redevelopment … [Read more...]

Email Legally Binding | Writing Sale of Land

When is an Email Legally Binding? Most contracts for the sale of land must be in Writing. So when is an email legally binding? In English statute law, ‘writing’ is defined to include “typing, printing, lithography, photography, and other modes of representing or reproducing words in visible form”, Interpretation Act 1978, Sch. 1. (Under this definition strictly an electronic document is not ‘writing’.) A requirement that estates or interests in land should be created or transferred in … [Read more...]

Implied Terms in Contract Law | Express Terms vs Implied Terms

Implied Terms in Contract Law Implied terms in contract law (or implied conditions) are those terms that, although not expressed, may be read into the contract if it would be reasonable to do so in order to give effect to the true intention of the parties. A term or condition that must be read into a contract if the intention of parties is not to be defeated; usually because it is inherent in the nature of the contract, or so obvious that it ‘goes without saying’. (‘Terms and conditions’ are … [Read more...]

Constructive Eviction | Interference with Tenant’s Proper Enjoyment

Constructive Eviction Defined Interference with a tenant’s proper enjoyment of a property by the landlord, or anyone under his authority, without necessarily depriving the tenant of physical possession. A term used predominately in the US for an act or omission of the landlord that “renders the premises substantially unsuitable for the purposes for which they are leased, or which seriously interferes with the beneficial enjoyment of the premises”. Such action is a breach of the covenant of … [Read more...]

Continuous Operation Clause | Keep Open Condition of Retail Lease

Continuous Operation Clause | Keep Open Clause 1. A clause in a lease of retail premises that specifies that the tenant is required to keep the premises open for business during normal business hours or during hours specified in the lease. As a rule, there is no implied covenant in a lease of retail property that the premises should be maintained open for business, although most leases of retail premises expressly provide hours for ‘continuous operation’ and provide the landlord with a right of … [Read more...]

Tenancy at Will | What are tenancies at will and sufferance

Tenancy at Will An arrangement whereby a person occupies land with the consent of the owner, as if he were a tenant (and not merely a servant or agent), but on the understanding that his occupation may be terminated at any time at the will of either party (Covina Manor, Inc. v. Hatch, 133 Cal App.2d 790, 284 P.2d 580, 582 (1955)). “It must be at the reciprocal will of both parties expressly or by implication (1 Co Litt 55a), and the dissent of either determines it”, Wharton’s Law Lexicon (14th … [Read more...]

Time, start and end | Day, week, month, year

Time start and end Time is a measure of change. Time may be defined as "a measure of change; the relative occurrence, or reoccurrence, of something. The period during which an event happens. A period of existence. The instant at which an event takes place, or should take place. The moment stipulated for a condition to occur", Encyclopedia of Real Estate Terms, Third Edition. This change in time, start and end,  can be measured in seconds, minutes, hours, days, weeks, months, years or … [Read more...]

Force Majeure | Force Majeure Superior Force But Not Act Of God

Force Majeure and Act of God Force majeure and Act of God are similar and  both can bring a contract or obligation (including in rare cases a lease) to an end. Force majeure literally means a ‘superior force’. A term that is used more in civil or French law, as well as in insurance, to refer to a physical or material act that is uncontrollable or beyond human capacity to prevent, such as lightning, storms, earthquake, or sudden death (Lehman, Stern & Co. v. Morgan’s Louisiana & T. R. … [Read more...]

Warranty of Habitability | Should leased premises be fit for purpose?

Warranty of Habitability(US) An implied condition of a tenancy of residential property that the landlord will ensure that the premises are fit for habitation at the start of the lease and are maintained as such throughout the term. A requirement that the premises are "free from any latent defect or conditions rendering the premises uninhabitable for residential purposes; and ... will remain reasonably fit for residential purposes during the entire term, a promise which carries with it an … [Read more...]