Landlord and Tenant Act 1954

Inside the Act? Outside the Act?

Does it matter?  – well yes it does if you are a Tenant

Go back to 1953 a good year, the Coronation, Everest conquered, sweety rationing over, but as a Tenant of commercial premises it wasn’t so good. You had no security of tenure. Your lease expired and your Landlord could kick you out – no compensation, business gone down the drain, no income, no food kids without shoes - destitution!

Sounds like a plot of a Dickens book, a cruel Landlord and a put upon Tenant.

A new year  and a new Act of Parliament.

Part ll of the Landlord and Tenant Act 1954 came in to force and gave to the Tenants of commercial premises a right enshrined in law to demand from their Landlord a new Lease on the expiration of the old one and, if terms could not be agreed, then a route via a tribunal for the terms to be agreed by an independent adjudicator was put in place.

 All’s well with the Tenant’s world, or is it?

Well not if you’re a Tenant it’s not because those 1950’s law makers gave the Landlords a “get of jail free” card. By agreement with the Tenant the Landlord is able to exclude the provisions of Sections 24 to 28 inclusive of the Act this means that the Tenant can agree to sign away his rights to an automatic grant of a new lease at the end of the term of an existing lease with no form of compensation (back to the Dicken’s story).

So Tenants need to look out for this.

As a prospective Tenant you should see it coming. The Heads of Terms produced by the letting agent should refer to this. There will be a clause in the Lease confirming it and to comply with the Act a formal Notice will be served on you giving you 14 days notice of the proposal to exclude the protection that the Act gives you.

But I want to move in tomorrow, I hear a Tenant say.

No problem, make a Statutory Declaration (a sworn statement) confirming that you have received the Notice and understand its meaning, Bobs your uncle –Charley is your aunt and you can be in the premises without the 14 days having to expire.

Your solicitor can explain it further but by the time you speak to them the deal is probably struck and as a Tenant you will be in a position to like it or lump it.

If in doubt – speak to Stephen Cook on 01737 362131 or email info@copleyclark.co.uk who will be able to advise you further on this aspect of leasing a commercial property and much more besides

© QualitySolicitors Copley Clark 2016