Q&As

How do the courts determine 'term/duration’ in a 1954 Act Lease Renewal? The tenants in this case require a very short new lease.

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 29/06/2016

The following Property Disputes Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • How do the courts determine 'term/duration’ in a 1954 Act Lease Renewal? The tenants in this case require a very short new lease.

How do the courts determine 'term/duration’ in a 1954 Act Lease Renewal? The tenants in this case require a very short new lease.

Part II of the Landlord and Tenant Act 1954 (LTA 1954) provides for significant protection to business tenants. Notwithstanding that a lease expresses that it will expire on a given date, the LTA 1954 provides (so long as the lease is not expressly contracted out of its provisions) that the tenancy will continue until terminated through specific court proceedings, and grants the tenant the right to apply for a new tenancy.

Either the landlord or the tenant can serve a notice under, respectively, LTA 1954, ss 25 and 26. The landlord can seek to terminate the tenancy, or either party can seek the grant of a new tenancy on proposed terms. If those terms cannot be agreed the court will determine those terms. One of the terms will be the length of the new lease.

It is unclear in this Q&A whether there is a dispute between the landlord and the tenant as to the terms of the new lease. The tenants require a very short lease; a landlord may well dispute this as it is not beneficial to it to have a tenant in situ for only a short period of time. If the parties can agree, then terms can be reached and

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