Q&As

A company is taking a 999-year lease of land that it will then sublet for the purpose of residential development. Will the 999-year lease constitutes a business tenancy under the Landlord and Tenant Act 1954, given that the land will ultimately be used for residential purposes?

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Published on LexisPSL on 11/07/2016

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

  • A company is taking a 999-year lease of land that it will then sublet for the purpose of residential development. Will the 999-year lease constitutes a business tenancy under the Landlord and Tenant Act 1954, given that the land will ultimately be used for residential purposes?
  • Business tenancy
  • Application

Business tenancy

A ‘business tenancy’ is defined as a tenancy regulated by the Landlord and Tenant Act 1954 (LTA 1954).

LTA 1954, Pt II applies to tenancies where the property comprised in the tenancy is or includes premises which are occupied by the tenant for the purposes of a business that he or she carries on.

Application

The LTA 1954, s 23 provides that a tenancy is within the LTA 1954 if the whole or a part of the demised premises is occupied by the tenant for the purposes of his business or for those and other purposes. The expression 'business' includes any trade, profession or employment. It also includes any activity carried on by a body of persons, whether corporate or unincorporate. Therefore, there are three essential conditions if the protection of the Act is to be secured:

  1. there must be a tenancy. A mere licence does not confer statutory protection

  2. the tenant must occupy at least a par

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