SQE1 sample questions

Question 68

Three years ago, a woman bought the freehold of a building which is subject to a lease of the whole building protected by the Landlord and Tenant Act 1954 (Part II) (LTA).

The tenant runs a recruitment business from the building.

The term of the lease is for 12 years and there are ten months of this term remaining.

At the contractual expiry of the lease, the woman intends to reconstruct the building, converting it into flats. The reconstruction cannot reasonably be carried out without obtaining possession of the building. She has obtained the necessary planning permission for the works.

The woman has just received from the tenant a notice under s.26 of the LTA requesting a new lease.

The woman seeks legal advice about whether she can oppose the tenant’s request on the ground that she intends to reconstruct the building.

What advice should the solicitor give about whether the woman can oppose the tenant’s request for a new lease on this ground?

A. The woman can rely on this mandatory ground and compensation is payable.

B. The woman can rely on this mandatory ground and compensation is not payable.

C. The woman may rely on this discretionary ground and, if the woman successfully opposes the tenant’s request for a new lease on this ground, compensation will be payable.

D. The woman cannot rely on this ground as she has not yet owned her interest for sufficiently long.

E. The woman cannot rely on this ground as the lease is less than 14 years in duration.