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Property Law Journal: May 2016
Dentons

Bryan Johnston reports on the outcome of a recent High Court decision, and calls for further reform to the 1995 Act

The Landlord and Tenant (Covenants) Act 1995 (the Act) has been a source of much judicial consideration in recent years. In particular, the validity of guarantees given by guarantors following assignment of leases has been the cause of legal scrutiny as well as consternation and concern from commercial parties keen to deal with their own business affairs but affected by the operation of the Act. A landlord, for example, risks losing the security of a valid guarantee from a guarantor with good covenant strength. Conversely, a tenant group may find it difficult to restructure as landlords seek to avoid a parent company’s guarantee becoming void and refuse consent to assign.

William Naunton and Bryan Pickup review the potential implications of a possible exit from the EU

The real estate sector is already feeling the ramifications of the Brexit referendum, because of the pause it has created in the property investment market.

Alastair Morrison and Rose-Anna Higgins consider the details of the increased stamp duty land tax burden for buyers and their advisers

George Osborne’s 2016 Spring Budget introduced a number of changes that will affect UK real estate, which are set out below.

Forsters LLP

Dean Monk examines a case in which a guarantor unsuccessfully sought to avoid liability on the basis the landlord had accepted a surrender of the lease

The case of Padwick Properties Ltd v Punj Lloyd Ltd [2016] involved a bold attempt by a guarantor to delay and/or prevent liability following the tenant’s insolvency.

Dentons

Rebecca Clarkson and Roy Pinnock explore the conflict between planning policy preventing development in flood zones and the need to build more housing

A spate of major floods across the UK, warnings that global warming will lead to more frequent heavy rainfall events and increased risks of flooding have put the topic back at the top of the pile for planners.

Mark Pawlowski analyses when a lease can be terminated using surrender by operation of law

A surrender is the process by which a tenant gives up their leasehold estate to their immediate landlord. The lease is essentially destroyed by mutual agreement. An express surrender of a term of more than three years must be made by deed: s52(1) of the Law of Property Act 1925 (the 1925 Act). Otherwise, the express surrender must be in writing: s53(1)(a) of the 1925 Act.

John Starr

John Starr investigates whether ‘smash and grab’ adjudications relating to a final account should be reconsidered by another adjudicator

I have mentioned in previous articles in this column the current trend for what are fast becoming known as ‘smash and grab’ adjudications. They arise as a consequence, possibly unintended, of the amendments made to the payment provisions of the Housing Grants, Construction and Regeneration Act 1996 (the Act) by the Local Democracy, Economic Development and Construction Act 2009, which came into force on 1 October 2011.