Security of Tenure

• What does security of tenure provide to a commercial tenant?

  It gives the tenant the right to stay in leased premises after the end of the tenancy.
• What is the exemption for commercial leases regarding security of tenure?

  Commercial leases less than 6 months are exempt from security of tenure.
• Under what conditions can a landlord contract out of security of tenure?

  If the landlord serves a health warning notice at least 14 days before the lease is completed, and the tenant signs a declaration confirming they have seen the health warning.
• What must the lease reference for a landlord to contract out of security of tenure?

  The lease must reference the health warning, tenant declaration, and agreement.
• What is a Section 25 Notice?

  It is a notice served by the landlord to terminate the tenancy.
• When must a Section 25 Notice be served?

  It must be served between 6 to 12 months before the end of the term.
• What are the statutory grounds for a landlord to serve a Section 25 Notice?

  Tenant breach of obligations, subletting, availability of suitable alternative accommodation, intent to demolish or reconstruct, or intent to occupy the premises.
• What distinguishes discretionary grounds A and B from grounds C to E in a Section 25 Notice?

  A and B are discretionary, meaning the court may decide to order a new tenancy, while C to E must be established for the court to refuse a new tenancy.
• What is a Section 26 Notice?

  It is a notice served by the tenant requesting a new lease.
• When must a Section 26 Notice be served?

  It must be served between 6 to 12 months before the end of the current lease.
• What is the landlord's obligation after receiving a Section 26 Notice?

  The landlord has two months to inform the tenant whether they intend to oppose the new lease.
• If a landlord is unwilling to agree to a new lease, what must they specify?

  They must specify a statutory ground for their refusal.
• What compensation is a tenant entitled to if the landlord requires the whole premises for letting?

  The tenant is entitled to compensation if the landlord requires the whole premises for letting, intends to demolish, or occupy the whole premises.
• What damages can a tenant claim if they have been in occupation for at least 14 years?

  The tenant can claim damages of twice the rateable value of the holding.
• What can a tenant claim if they have been in occupation for less than 14 years?

  The tenant can claim damages at the rateable value of the holding.
• How is the rateable value of the holding determined?

  It is set by the Government Valuation Office Agency.
• What happens if the parties cannot agree on the terms of the lease?

  The court can set the lease terms, with a maximum term of 15 years.
• What is ground A for refusing renewal of lease under s.30 Landlord and Tenant Act?

  GROUND A : BREACH OF REPAIR COVENANT

  • DISCRETONARY
  • EVIDENCE OF TENANTS FAILURE TO PAY IS NOT ENOUGH TO DISMISS TENANTS APPLICATION
  • LANLORD MUST SHOW THEY CANNOT RENEW LEASE DUE TO

  DISREPAIR

  • COURT WILL TAKE INTO ACCOUNT TENANTS OFFER TO REPAIR
• What is ground B for refusing renewal of lease under s.30 Landlord and Tenant Act?

  •  B: PERSISTANT DELAYED PAYMENT OF RENT
  • DISCRETIONARY
  • LANDLORD MUST SHOW PERSISTENT FAILURE TO PAY AS REASON NOT TO RENEW LEASE
• What is ground C for refusing renewal of lease under s.30 Landlord and Tenant Act?

  GROUND C: BREACHES OTHER OBLIGATIONS

  • DISCRETIONARY
  • COURT WILL CONSIDER ALL CIRCUMSTANCES SURROUNDING BREACH.
• What is ground D for refusing renewal of lease under s.30 Landlord and Tenant Act?

  GROUND D: AVAILIBILITY OF ALTERNATIVE ACCOMODATION

  • COURT HAS NO/ LITTLE DISCRETION
  • LANDLORD MUST SHOW ALTERNATIVE PREMISE OFFERED WITH REASONABLE LEASE TERMS.
• What is ground E for refusing renewal of lease under s.30 Landlord and Tenant Act?

  GROUND E: SUB TENANT POSSESSION REQUIRED FOR LETTING OR DISPOSING OF WHOLE PROPERTY

  • DISCRETIONARY
  • LANDLORD MUST SHOW TENANCY WAS FORMED BY SUBLETING

  SUPERIOR TENANCY

  • LANDLORD MUST PROVE SUPERIOR TENANCY HAS COME TO AN END
• What is ground F for refusing renewal of lease under s.30 Landlord and Tenant Act?

  • GROUND F: INTENTION TO DEMOLISH / RECONSTRUCT
  • MANDATORY GROUND
  • MUST SHOW INTENTION AND THAT PLAN COULD NOT BE DONE WITHOUT TAKING POSSESSION
  • COURT WILL BE MORE CONVINCED IF BUILDING IS OLD AND DILAPIDATED
• What is ground G for refusing renewal of lease under s.30 Landlord and Tenant Act?

  GROUND G: LANDLORD INTENDS TO OCCUPY THE PREMISES THEMSELVES

  • MANDATORY GROUND

  • LANDLORD MUST SHOW THEY INTEND TO OCCUPY FOR BUSINESS OR RESIDENCE PURPOSES

  • MUST HAVE OWNED PREMISES FOR 5 YEARS BEFORE TERMINATING THE LEASE
• When would a landlord serve a s.17 notice ?

  when a landlord wishes to recover rent from a former tenant or guarantor