Q&As

An undertenant is holding over an underlease which is protected by the LTA 1954. Renewal of the underlease is being considered. Can the undertenant force the landlord to grant/consent to a new underlease even though the tenant’s lease contains a break clause—exercisable before expiry of the term of the new underlease? What would happen in the event that the tenant did exercise its break clause?

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Produced in partnership with Kate Andrews of Hamlins
Published on LexisPSL on 04/08/2016

The following Property Disputes Q&A produced in partnership with Kate Andrews of Hamlins provides comprehensive and up to date legal information covering:

  • An undertenant is holding over an underlease which is protected by the LTA 1954. Renewal of the underlease is being considered. Can the undertenant force the landlord to grant/consent to a new underlease even though the tenant’s lease contains a break clause—exercisable before expiry of the term of the new underlease? What would happen in the event that the tenant did exercise its break clause?

An undertenant is holding over an underlease which is protected by the LTA 1954. Renewal of the underlease is being considered. Can the undertenant force the landlord to grant/consent to a new underlease even though the tenant’s lease contains a break clause—exercisable before expiry of the term of the new underlease? What would happen in the event that the tenant did exercise its break clause?

In order to request the grant of a renewal lease, the undertenant will need to meet the qualifying criteria’s set out in section 23 of the 1954 Landlord and Tenant Act 1954 (LTA 1954), namely the undertenant will be required to show:

  1. that there is a tenancy

  2. the tenancy relates to the premises

  3. the premises are occupied for the purposes of a business

  4. that business is carried on by the undertenant, and

  5. the tenancy does not fall within any of the specific exclusions

If the undertenant meets those qualifying criteria, it will be entitled to serve a notice pursuant to LTA 1954, s 26 requesting the grant of a renewal tenancy. Any notice under LTA 1954, s 26 cannot be served more than 12 months prior to the

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