Q&As

A non-charity ‘tenant’ is occupying residential property for the purpose of a business carried on by it (providing child care services). A five-year lease, containing no contracting-out provisions, was executed, but never completed. It reserved an annual rent, paid quarterly. What is the basis of occupation of the ‘tenant’—an implied periodic tenancy on the terms of the lease with the Landlord and Tenant Act 19541 protection? If so, would the landlord need to serve a section 25 notice and also a notice to quit in respect of the periodic tenancy?

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Produced in partnership with Desmond Kilcoyne
Published on LexisPSL on 07/06/2018

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

  • A non-charity ‘tenant’ is occupying residential property for the purpose of a business carried on by it (providing child care services). A five-year lease, containing no contracting-out provisions, was executed, but never completed. It reserved an annual rent, paid quarterly. What is the basis of occupation of the ‘tenant’—an implied periodic tenancy on the terms of the lease with the Landlord and Tenant Act 19541 protection? If so, would the landlord need to serve a section 25 notice and also a notice to quit in respect of the periodic tenancy?

A non-charity ‘tenant’ is occupying residential property for the purpose of a business carried on by it (providing child care services). A five-year lease, containing no contracting-out provisions, was executed, but never completed. It reserved an annual rent, paid quarterly. What is the basis of occupation of the ‘tenant’—an implied periodic tenancy on the terms of the lease with the Landlord and Tenant Act 19541 protection? If so, would the landlord need to serve a section 25 notice and also a notice to quit in respect of the periodic tenancy?

The fact that a building is a house or flat (ie designed wholly for residential purposes) does not prevent it falling within the scheme of the Landlord and Tenant Act 1954 (LTA 1954). If the property comprised in the relevant tenancy ‘includes premises which are occupied… for the purposes of a business’ (LTA 1954, s 23(1)), and that business activity is a significant purpose of the occupation and not merely incidental to any residential use (see eg Cheryl Investments Ltd v Saldanha), the letting properly can fall within the scheme of LTA 1954.

It is not necessary that the tenant’s occupation is exclusively for business purposes. LTA 1954, s 23 states that the occupation may be for business purposes ‘and other purposes’.

Further, LTA 1954, s 23(4) provides that LTA 1954 does not apply to any tenancy

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