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View the related checklists about Business tenancy

Surrender of lease—acting for the tenant—checklist

Surrender of lease—acting for the tenant—checklist This Checklist sets out some of the key steps and issues that the tenant should consider when contemplating surrendering its lease to its landlord. It is not exhaustive and you must always consider whether there are any other issues that need to be addressed in your particular circumstances. The Checklist assumes that: • the surrender is express and not by operation of law, and • there will be no re-grant in favour of the tenant immediately following the surrender This Checklist can be read in conjunction with Practice Note: Lease surrenders and Checklist Surrender of lease—acting for the landlord—checklist. How to use this Checklist Whilst the mechanics of the surrender of a lease are similar to a sale and purchase (because the tenant is selling and the landlord is buying), there are some differences. The first section (Key issues) in this Checklist sets out the key issues to consider with further detail in the table in Procedure when dealing with the surrender of a...

Due diligence—security of tenure—checklist

Due diligence—security of tenure—checklist The Landlord and Tenant Act 1954 (LTA 1954) gives tenants of business tenancies security of tenure—a statutory right to stay on in their premises after the expiry of the contractual term of the lease and to call for the grant of a new lease. It is essential on any due diligence exercise to check whether a lease does or does not have security of tenure under LTA 1954 because the application or otherwise of LTA 1954 to a lease of business premises is fundamental to all commercial leases and will, among other things, have an impact on the value of the property, the ease of obtaining vacant possession and any future plans of the landlord for the property. See Practice Note: Contracting out of the Landlord and Tenant Act 1954—procedures, timing and pitfalls. Does LTA 1954 apply to the lease? A business tenant will have security of tenure under LTA 1954 if they are in occupation of premises for the purposes of their business unless: •...

View the related flowcharts about Business tenancy

LTA 1954 unopposed lease renewal procedure—flowchart

LTA 1954 unopposed lease renewal procedure—flowchart A business lease automatically continues after the expiry of the contractual term if the tenant remains in occupation for business purposes under the Landlord and Tenant Act 1954 (LTA 1954). The statutory rights under the existing lease may be terminated by either party serving one of the statutory notices of termination. This flowchart sets out the procedure for an LTA 1954 unopposed business lease renewal. For the LTA 1954 opposed business lease renewal procedure, see: LTA 1954 opposed lease renewal procedure—flowchart. For more information regarding LTA 1954 security of tenure and the court procedure, see Practice Notes: LTA 1954 business lease renewal—proceedings and LTA 1954 business lease renewal—termination. Note 1 Diarise a date at least 12–18 months in advance of the contractual expiry date of the current lease. See Practice Note: LTA 1954 business lease renewal—termination. Note 2 Information must be provided within one month of service of notice. A party has a duty to correct any information supplied for six months...

View the related practice notes about Business tenancy

Contracting out of the Landlord and Tenant Act 1954—agreement to surrender a business tenancy

This Practice Note sets out the circumstances in which the Landlord and Tenant Act 1954 (LTA 1954) applies to a surrender of a lease of business premises.Parties intending to enter into an agreement to surrender a lease of business premises should check whether the lease has the protection of the security of tenure provisions in LTA 1954. If a tenant has protection under LTA 1954, Pt II and the correct statutory procedure is not followed, then any agreement to surrender will not prevent the tenant from exercising their rights to request (and obtain) a new lease under LTA 1954. This can cause expensive issues and delay for a landlord who wishes to take possession of the premises (eg for redevelopment, to occupy or to re-let).For further guidance on contracting out of LTA 1954, see Practice Note: Contracting out of the Landlord and Tenant Act 1954—procedures, timing and pitfalls.When does the Landlord and Tenant Act 1954 apply on the surrender of a lease?Leases of business premises fall into two categories; those...

A guide to rent review for property lawyers

A guide to rent review for property lawyers This Practice Note deals with the principles behind rent review provisions. For information on drafting and negotiating rent review clauses see Practice Notes: Rent review—a practical lease negotiation guide and Drafting index—linked rent review clauses. Onerous provisions Before getting to the rent review clause itself, the other provisions in a lease can have an impact on the reviewed rent. Points scored and gloated over when negotiating a lease can bite back when the rent comes up for review. In a weak market, the presence of onerous provisions in a lease can entirely wipe out the uplift in rent that would be achieved by a more reasonably pitched lease. In a rising market, any well-advised tenant seeking to limit rent increases at review will argue for a discount to reflect unfair or burdensome terms. While some terms are always regarded as onerous, others shift their status and effect depending on prevailing market conditions. The following are those terms most likely to be used...

View the related precedents about Business tenancy

Section 25 notice—landlord opposing renewal (with grounds) under LTA 1954

Section 25 notice—landlord opposing renewal (with grounds) under LTA 1954 These drafting notes are for use when completing a landlord’s section 25 notice opposing renewal (with grounds) under the Landlord and Tenant Act 1954 (LTA 1954). They are intended to be used when completing the prescribed form under the Landlord and Tenant Act 1954, Part 2 (Notices) Regulations 2004, SI 2004/1005, which is available here. It is good practice to serve the notice in duplicate and ask the receiving party to endorse and return the duplicate copy to acknowledge receipt. General A business tenancy automatically continues after the initial lease expires under the Landlord and Tenant Act 1954 (LTA 1954). A ‘business tenancy’ is one where property is occupied for the purposes of a trade or profession (see LTA 1954 business lease renewal—termination—Meaning of 'occupied for the purposes of business') unless it is one of 17 types of excluded tenancies (see: LTA 1954 business lease renewal—termination—Excluded tenancies), or where occupation is as licensee or tenant at will. Under LTA...

Section 26 request—Tenant’s request for a new business tenancy under LTA 1954

Section 26 request—Tenant’s request for a new business tenancy under LTA 1954 Tenant's request for a new business tenancy These drafting notes are for use when completing a tenant’s request for a new business tenancy under the Landlord and Tenant Act 1954. They are intended to be used when completing the prescribed form under the Landlord and Tenant Act 1954, Part 2 (Notices) Regulations 2004, SI 2004/1005, which is available here. It is good practice to serve the notice in duplicate and ask the receiving party to endorse and return the duplicate copy to acknowledge receipt. The parties Ensure that the notice is served by, and on, the correct parties. To The notice must be addressed to the competent landlord—see Practice Note: LTA 1954 business lease renewal—termination—Competent landlord. From It must be served by the tenant or, where there are joint tenants, all of them. For the position where the business is a partnership, see Practice Note: LTA 1954 business lease renewal—termination—Section 26—joint tenants. Paragraph 1 Complete the address...

View the related q&as about Business tenancy

Where a landlord opposes the grant of a new business tenancy in its section 25 notice/counter-notice to a section 26 request, based on a ground of opposition in section 30(1) of the Landlord and Tenant Act 1954 which gives rise to statutory compensation, must the tenant take any steps to preserve its right to compensation and if so, is there a deadline by which this must be done?

Where a landlord opposes the grant of a new business tenancy in its section 25 notice/counter-notice to a section 26 request, based on a ground of opposition in section 30(1) of the Landlord and Tenant Act 1954 which gives rise to statutory compensation, must the tenant take any steps to preserve its right to compensation and if so, is there a deadline by which this must be done? This Q&A has been drafted on the basis that the landlord has not included a non-compensation ground and the: • tenant does not make an application for the grant of a new lease (section 24(1) of the Landlord and Tenant Act 1954 (LTA 1954)), and

Should a landlord serve notice under section 5 of the Landlord and Tenant Act 1987 in respect of a property comprising a lease of each room (which incorporates an en suite bathroom), but where the tenants share a kitchen area?

Should a landlord serve notice under section 5 of the Landlord and Tenant Act 1987 in respect of a property comprising a lease of each room (which incorporates an en suite bathroom), but where the tenants share a kitchen area? Part I of the Landlord and Tenant Act 1987 (LTA 1987) applies to premises if: • they consist of the whole or part of a building • they contain two or more flats held by qualifying tenants, and • the number of flats held by such tenants exceeds 50% of the total number of flats in the premises The answer to this Q&A will depend on whether the rooms with en suite facilities, but shared kitchens, can be called flats and on the nature of the tenancies held by the tenants. Nature of tenancy In relation to the second point, a person is a qualifying tenant of a flat if they are the tenant of it under a tenancy other than: • a protected shorthold tenancy • a business tenancy...

View the related News about Business tenancy

Property Disputes weekly highlights—19 September 2024

This week's edition of Property Disputes weekly highlights includes: High Court cases on the use of an expert determination procedure under a contract for sale of land, variation of an express declaration of trust, and an unsuccessful claim for an interest in properties on the basis of a partnership or joint venture, and an FTT decision on a cladding defects remediation order.

Property weekly highlights—16 May 2024

This week's edition of Property weekly highlights includes: the government’s response to the consultation on High Street Rental Auctions, an update from the Law Commission on its work and a case on termination of a business tenancy through misrepresentation.