Right to Rent meaning

This Checklist sets out the matters a landlord ought to weigh up where a tenant faces insolvency, highlighting the options open to the landlord, such as Commercial Rent Arrears Recovery (CRAR), forfeiture, drawing on a rent deposit, and pursuing former tenants, guarantors and sub-tenants. It further addresses practical considerations for the landlord, including steps for securing and marketing the property, and contacting the insolvency practitioner. What type of insolvency scenario applies to the tenant? The remedies that can be exercised, and the limits that will bite, differ depending on the particular insolvency arrangement affecting the tenant. Each procedure brings distinct constraints and options. For a table summarising the restrictions, see Practice Note: Quick guide to landlord’s remedies in tenant insolvency. Has contact been made with the insolvency practitioner? It is vital to liaise with the relevant insolvency practitioner to assess the tenant’s position and to evaluate what, if any, prospect exists of outstanding sums being repaid, future rents being protected, or the tenant emerging from the...

This Checklist is for use as part of a due diligence exercise when reviewing an option to renew a lease. It is chiefly directed at a buyer of a reversionary interest in the lease that includes the option, though it also flags matters a buyer of leasehold property benefiting from an option should consider. Ask whether the option gives rise to a perpetually renewable lease. Confirm the renewal provision clearly states the new lease will not itself include a further option to renew. Where each renewal lease carries another option, a perpetually renewable lease is created. A perpetually renewable lease is converted into: in the case of a head lease, the grant of a lease for 2,000 years; and in the case of an underlease, the grant of a lease for a term ending one day before the expiry of the term from which it is derived, and in both scenarios without any right to renew...

Pre-emption period Ensure the agreement specifies a defined period during which the buyer enjoys the benefit of the right of pre-emption, with that entitlement confined to the stated timeframe. Trigger event Consider whether the event that obliges the seller to offer the property to the buyer (often captured by the definition of ‘Disposal’) is drawn too broadly. For example, will granting a lease at a rack rent set off the pre-emption right? Many sellers regard such lettings as simple upkeep of their investment in the property. Also think about carving out from ‘Disposal’ (or the pre-emption trigger) a contract for sale of the property that is conditional upon the right of pre-emption being exhausted. This can assist a landowner when concluding a sale with a third party, particularly where it is plain that the buyer has no intention of exercising the option. Avoid phrasing the trigger as arising when the seller ‘proposes to dispose’ of the property, as that may merely invite a dispute about precisely when...

Checklist This Checklist applies when acquiring a long leasehold interest carrying a capital value, rather than a shorter tenancy at an open market rent, which is unlikely to attract any capital value. A purchaser’s solicitor should examine the landlord’s right to forfeit the lease, as in some situations particular forfeiture clauses can render a lease unacceptable as security to a lender and, in turn, unsuitable for purchase. Could the landlord exercise forfeiture upon the tenant’s insolvency? Where the landlord holds a right to forfeit on a tenant insolvency event, the property will not be acceptable security to a lender and is therefore inappropriate as an investment acquisition. Consequently, such a lease is neither appropriate for lending purposes nor for any purchase...

In this issue: Leasing property Property development Residential property Key developments and horizon scanning LexTalk®Property: a Lexis®Nexis community Additional property updates this week Daily and weekly news alerts Trackers Leasing property Code—terms of renewal lease In EE Ltd v AP Wireless II (UK) Ltd [2024] UKUT 216 (LC), the Upper Tribunal (Lands Chamber) fixed the terms of a replacement lease for a telecommunications site under the Electronic Communications Code. The earlier lease had ended and the claimants sought new Code rights from the present landlord. Two issues were in dispute: (1) the conditions allowing the landlord to bring the new lease to an end for redevelopment, and (2) the level of rent or consideration payable. The parties’ valuers advanced divergent figures—£1,000 per annum for the claimants and £2,850 per annum for the respondent. The Tribunal found for the respondent on the break right, permitting termination for redevelopment, including telecoms redevelopment, but only after the fifth...

In this issue Key developments and horizon scanning Forfeiture Service charges Disputes and remedies Trespass and adverse possession LexTalk®Property Disputes: a Lexis®Nexis community Additional Property disputes updates Daily and weekly news alerts New and updated content Trackers Latest Q&As Key developments and horizon scanning The Leasehold and Freehold Reform Act 2024 secured Royal Assent on 24 May 2024, ahead of Parliament’s prorogation. The Department for Levelling Up, Housing and Communities confirmed this in a press release outlining the headline measures. See LNB News 28/05/2024 108. The Royal Institution of Chartered Surveyors has reacted to the passage of the LFRA 2024. RICS welcomes the Act for bringing greater certainty to leaseholders, landlords and the market, while noting lingering ambiguities and points of concern. See LNB 29/05/2024 75. Forfeiture A delay in returning rent did not amount to a waiver of the right to forfeit (The Tropical Zoo Ltd v The Mayor...

In this issue: Repairing obligations and dilapidations Trespass and adverse possession Service charges Residential tenancies Disputes and remedies Rent and rates Easements and covenants Property disputes in Scotland Additional Property Disputes updates LexTalk® Property Disputes: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Repairing obligations and dilapidations Building Safety Act—remediation contribution orders—respondents’ appeal dismissed in Vista Tower (Grey GR Ltd Partnership v Edgewater (Stevenage)) In Grey GR Ltd Partnership v Edgewater (Stevenage) [2025] Lexis Citation 276, the Upper Tribunal (UT) rejected the respondents’ appeal against the First-tier Tribunal’s (FTT) grant of a remediation contribution order under section 124 of the Building Safety Act 2022, made against 75 respondents. Marcus Birch of BCLP reviews the decision. See News Analysis: Building Safety Act—remediation contribution orders—respondents’ appeal dismissed in Vista Tower. High Court held progressive failure of window seals constituted disrepair (Better...

What is a CVA? A company voluntary arrangement (CVA) is a form of insolvency that permits a company to enter a binding agreement with its creditors to compromise unsecured debts or otherwise agree how its affairs are handled. The directors continue to run the business, under the oversight of an insolvency practitioner. Retailers, particularly those with extensive property portfolios, frequently adopt so‑called ‘landlord CVAs’ to reset rental commitments and shut loss‑making stores. This note outlines how property law and landlord and tenant considerations may emerge under such a CVA. It highlights provisions commonly included in CVAs and explains how they tend to work in practice. Nevertheless, each CVA will vary according to the precise terms proposed. It is therefore vital to examine the CVA proposal carefully to assess its effect on creditors. This note does not provide detailed guidance on the mechanics of approving and implementing a CVA. For Practice Notes addressing the CVA procedure, see: Company voluntary arrangements—an introductory guide The CVA proposal and...

Who insures? Joint insurance From a tenant’s standpoint, the preferred arrangement is for the premises to be insured in the joint names of the landlord and the tenant. For the tenant, the key advantages are: both parties are alerted before the policy comes up for renewal or lapses any insurance proceeds are payable jointly to landlord and tenant, giving the tenant influence over how the funds are applied (and therefore over the reinstatement of the premises) there are no detrimental effects if the landlord enters liquidation before reinstatement is carried out the insurers cannot rely on their right of ‘subrogation’ (see Subrogation below) against the tenant for damage the tenant caused or contributed to Nevertheless, in many cases arranging insurance in joint names will not be practical...

FORTHCOMING CHANGE On 27 October 2025, the Renters’ Rights Act 2025 obtained Royal Assent. For guidance on the Act’s effect on residential tenancies in England, see Practice Note: Renters’ Rights Act 2025—key provisions. This Practice Note sets out mortgagee possession claims, including the mortgagee’s right to seek possession and their duties once in possession, the mortgagor’s right to request time to pay under the Administration of Justice Act 1970, the position of any tenants of the mortgagor, the pre-action protocol, and the process for bringing a claim. For guidance on the range of remedies available to mortgagees, see Practice Note: Mortgages and land—enforcement of mortgages and legal charges over land. The right to possession Where a mortgagor has fallen into default, the mortgagee will often wish to sell the property and may first need to secure possession. However, it is also possible to: sell without taking possession: a sale subject to a tenancy can be especially attractive for a commercial property let at a...

Landlord and Tenant Act 1987, section 5B OFFER NOTICE To: [ [ name of tenant ] OR [ name of the qualifying tenant of flat [ insert flat number ] ] ] of [ address of flat ] PLEASE NOTE: THIS NOTICE SETS OUT IMPORTANT LEGAL RIGHTS FOR YOU AND OTHER QUALIFYING TENANTS UNDER THE LANDLORD AND TENANT ACT 1987 (LTA 1987). YOU SHOULD SEEK IMMEDIATE LEGAL ADVICE ABOUT IT. We, [ name and address of landlord's agents ], acting for [ name and address of landlord or mortgagee exercising power of sale ] (the 'Landlord'), hereby notify you as follows: This notice is served pursuant to sections 5 and 5B of the LTA 1987 and concerns [ describe the building containing flats affected by the proposed disposal ] (the 'Building') within which the flat you rent is located. The Landlord holds [ the freehold of OR a leasehold interest in ] the Building [ pursuant to a lease dated [ date ]...

I give my freehold house and land at [ insert full address of house and land ] [ and called [ insert house and land name(s) if relevant ] ] to my trustees, on trust that, if my [ spouse OR civil partner [ insert full name of spouse or civil partner ] ] wishes, they shall let on a yearly tenancy at £[ insert amount of rent ] per annum, without right to assign, sublet, or part with possession [ save furnished lettings up to [ insert period in months ] months yearly ], provided my [ spouse OR civil partner ] keeps the premises in good tenantable repair and insured against fire. While my [ spouse shall not marry or form a civil partnership OR civil partner shall not form another civil partnership or marry ] and complies, any notice to end the tenancy is ineffective unless signed by all trustees; but after the [ remarriage or forming of a civil partnership by my spouse OR forming of...

Lease provisions and clauses Better Buildings Partnership The Better Buildings Partnership (BBP) has produced template green lease clauses that span a wide range of topics, including: Definitions Co-operation obligations Building management groups Social impact Sustainable use Data sharing and metering Smart buildings Extending the landlord’s rights to carry out works Restricting the landlord’s right to undertake works that could diminish environmental performance Changes to the tenant’s ability to make alterations Energy Performance Certificates (EPCs) Reinstatement of tenant’s alterations Rent review Circular economy principles for landlord and tenant works Standards Renewable energy Dispute resolution For more, see BBP: Better Buildings Partnership—Green lease toolkit and Practice Note: Green leases—BPP toolkit—the model green lease clauses...

Right to rent scheme The duties imposed by the right to rent scheme extend to all relevant lettings described in Practice Note: Residential tenancies—a tenant’s right to rent under the Immigration Act 2014, except where a letting is an excluded tenancy set out in Schedule 3 to the Immigration Act 2014 (IA 2014), also cited in that Practice Note. Be aware that social housing—as defined in IA 2014, Sch 3—is outside scope entirely...

Assured shorthold tenancies An Assured Shorthold Tenancy (AST) is a form of assured tenancy that permits a landlord to rent out a dwelling, while still keeping the ability to recover possession of the property once the term finishes. This differs from regulated and other assured tenancies, where the occupier might have a right to remain in the home when the term ends. For further detail, see Practice Note: A summary of types of private residential tenancies, under the heading A summary of types of private residential tenancies—Assured shorthold tenancies. As to how an AST arises, the starting position is that any residential letting granted on or after 28 February 1997 will, by default, be an AST, unless the landlord has served a notice on the tenant confirming that the tenancy will not be an AST...

This Q&A raises the issue of the extent to which a person who takes an assignment of the reversion to a residential lease is able to recover rent which fell due before the date upon which it takes effect Upon serving the tenant with notice of assignment of the reversion, the assignee’s rights depend on when the residential lease was granted: Leases granted before 1 January 1996: under section 141 of the Law of Property Act 1925, the assignee is entitled to rent falling due in the future. In addition, as established in Re King, the assignee may pursue arrears that accrued before the assignment, and once the transfer takes effect, the outgoing landlord’s ability to recover those sums is lost. Leases granted on or after 1 January 1996: the Landlord and Tenant (Covenants) Act 1995 applies. By virtue of LT(C)A 1995, section 3(3)(b), an assignee of the reversion is entitled to rent which becomes payable after the assignment takes effect. In...