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What is Security of Tenure and protection under the Landlord and Tenant Act 1954?

Security of Tenure and Protection under the Landlord and Tenant Act 1954 is an interesting and complicated area of commercial property law, but our helpful and knowledgeable commercial property solicitors can help guide you through the law.

Security of Tenure

There is an automatic right under statute for a Tenant to renew a lease at the end of the lease term, providing that the premises is occupied by the tenant for business use. The lease can be renewed on similar terms. If the tenant has a 15 year lease for example, he can request a further 15 year lease term to be granted.

The rights governing Security of Tenure arise from the Landlord and Tenant Act 1954. Providing your lease is not “contracted out” of the 1954 Act, you are likely to benefit from Security of Tenure.

Can a Landlord refuse my request to renew the lease?

A Landlord may be able to oppose a request for renewed lease in instances whereby the tenant is in breach of his lease e.g. failing to repair the premises and persistent delay in paying rent. The breaches are usually substantial breaches and not minor breaches of the lease. The Landlord may also take back possession of the premises if he intends to carry out substantial construction works or if the Landlord intends to occupy the premises for his own business use.

What is a “contracted out” lease?

A contracted out lease means that the lease is excluding the security of tenure provisions as set out in the Landlord and Tenant Act 1954. These types of leases ensure that the Landlord can reclaim the premises when the lease term ends.

Why should a Tenant should have Security of Tenure?

Unless the Tenant is obtaining a lease with a very short term and on a very low rent, then it would be prudent for them to ensure that their lease is protected by Security of Tenure. If a business has built up significant goodwill during their time at the premises, then would not take kindly to be asked to leave at the end of their lease term. Can you imagine Harrods being told to move from Knightsbridge?

 

For further information about how Josiah Hincks can assist you in negotiating Security of Tenure in your Lease, please contact Rikesh Valand at our Blaby office on 0116 264 3430