Q&As

A buyer is purchasing a commercial property and contracts have been exchanged. The tenant of the property has been in occupation under a business tenancy protected under the Landlord and Tenant Act 1954 (LTA 1954). The seller served a section 25 notice stating they would not oppose the grant of a new lease. However, the tenant has made no application, a new lease has not been agreed and all the agreed extensions to do so have now expired. In this scenario, has the tenant lost their right to security of tenure?; when the buyer completes the purchase of the property, assuming they want the tenant to vacate, does the buyer still need to apply for a court order against the tenant (and would that require a notice to quit)? or can the buyer simply peaceably re-enter the property?; would the buyer be able to pursue the tenant for damages for the tenant's occupation when their protection under LTA 1954 expired?

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Produced in partnership with Desmond Kilcoyne
Published on LexisPSL on 01/03/2018

The following Property Q&A Produced in partnership with Desmond Kilcoyne provides comprehensive and up to date legal information covering:

  • A buyer is purchasing a commercial property and contracts have been exchanged. The tenant of the property has been in occupation under a business tenancy protected under the Landlord and Tenant Act 1954 (LTA 1954). The seller served a section 25 notice stating they would not oppose the grant of a new lease. However, the tenant has made no application, a new lease has not been agreed and all the agreed extensions to do so have now expired. In this scenario, has the tenant lost their right to security of tenure?; when the buyer completes the purchase of the property, assuming they want the tenant to vacate, does the buyer still need to apply for a court order against the tenant (and would that require a notice to quit)? or can the buyer simply peaceably re-enter the property?; would the buyer be able to pursue the tenant for damages for the tenant's occupation when their protection under LTA 1954 expired?

Where a landlord has served a valid notice pursuant to section 25 of the Landlord and Tenant Act 1954 (LTA 1954) and neither the landlord nor tenant have applied to the court, the tenancy will come to an end on the date specified in the section 25 notice.

Applications by the landlord (for renewal or termination) or tenant (for renewal) must be made to the court no later than the end of the ‘statutory period’ (being the date for termination specified in the section 25 notice or the date for commencement specified in any tenant’s section 26 request as stated in LTA 1954, s 29A(1). However, the parties are able to extend the statutory period by agreement if it is made before the end of the statutory period (or any agr

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