Q&As

A commercial property has been ‘let’ under an oral agreement to a company tenant which has subsequently been dissolved. There have never been any rent demands (although the landlord did carry out improvements). The premises continue to be used by the company’s directors, or persons permitted by the company to occupy the premises, prior to its dissolution. What steps does the landlord need to take to terminate the lease and to remove the occupiers?

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Published on LexisPSL on 28/06/2019

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • A commercial property has been ‘let’ under an oral agreement to a company tenant which has subsequently been dissolved. There have never been any rent demands (although the landlord did carry out improvements). The premises continue to be used by the company’s directors, or persons permitted by the company to occupy the premises, prior to its dissolution. What steps does the landlord need to take to terminate the lease and to remove the occupiers?
  • Nature of the occupation and method of termination
  • Impact of dissolution

Nature of the occupation and method of termination

Consideration needs to be given to the nature of the occupation (including the extent to which the directors are continuing to use the premises for the same business as the business of the dissolved company) in order to ascertain whether it is or was a licence, tenancy at Will or a periodic tenancy. If it was a periodic tenancy, it will be automatically protected under the Landlord and Tenant Act 1954 (LTA 1954). The method of termination will depend both on the nature of the occupation and on the impact of the dissolution of the company. For more information in respect of the nature of the tenancy and methods of termination, see:

  1. Practice Note: Using licences and tenancies at will

  2. Practice Note: LTA 1954 business lease renewal—termination

  3. Practice Note: LTA 1954 business lease renewal—proceedings

  4. Q&A: Following termination by the licensor of a commercial licence to occupy, the licensee has remained in occupation for 14 months, paying rent to the licensor. The parties have been actively negotiating a new lease. The licensee argues that it has security of tenure. What

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