Chapter 12 Multiple Choice Questions

. You are assisting a client, Susan Levene, with the approval of a new office lease. The lease is for 7 years with one rent review at the fourth year with the proposed rent being £25,000. It contains a long and detailed forfeiture clause. In approving the terms of the clause you need to decide which of the following would not normally give rise to the right to forfeiture?

Breach of a lease covenant.

A change of use with the landlord's licence.

The lessee's liquidation or bankruptcy.

Non-payment of rent.

. If a commercial lease is granted, the rule is that it is generally not exempt from value added tax but it is nevertheless subject to the option not to tax, i.e. to make the letting non-vatable.
Is this statement true or false?

True

False

. You act for Greta Doherty who is about to complete on the acquisition of a new commercial head lease of a sports equipment shop in the centre of London. The term is for nine years with rent reviews every three years at a commencing annual rent of £100,000. Which of the following must you do after completion to perfect the title?

Give notice to the lessor of the grant of the new lease.

Complete an Inland Revenue particular delivered form.

Register the property with the Local Authority for future Local Land Charge Search applications.

Register the title at the Land Registry.

. You act for Thomas Huddlestone. He is the lessor of a leasehold block of multi-let offices in Plymouth. He normally grants office leases for 12 years with 3 yearly rent reviews. However, he now knows that all registered leases are public documents. He feels that the rents in the leases are commercially sensitive and wants to avoid disclosing the annual rents in future leases. What should your advice be?

To leave out any mention of rent in the deed.

To grant an oral tenancy with nothing in writing.

To grant a licence for 12 years and not a lease.

To apply to the Registry for an EID.

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