Q&As

If a company remains in occupation after expiry of a lease and continues to pay rent such that an implied periodic tenancy arises, can that periodic tenancy be assigned to a new company if the first goes into liquidation and the second (which has the same directors and operates the same business) continues in occupation and pays the rent? Or would a new periodic tenancy have arisen? Where the new company ceases to pay the rent, can the landlord forfeit?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 05/05/2020

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:

  • If a company remains in occupation after expiry of a lease and continues to pay rent such that an implied periodic tenancy arises, can that periodic tenancy be assigned to a new company if the first goes into liquidation and the second (which has the same directors and operates the same business) continues in occupation and pays the rent? Or would a new periodic tenancy have arisen? Where the new company ceases to pay the rent, can the landlord forfeit?

If a company remains in occupation after expiry of a lease and continues to pay rent such that an implied periodic tenancy arises, can that periodic tenancy be assigned to a new company if the first goes into liquidation and the second (which has the same directors and operates the same business) continues in occupation and pays the rent? Or would a new periodic tenancy have arisen? Where the new company ceases to pay the rent, can the landlord forfeit?

Where a company occupies premises for the purpose of a business the tenancy is sometimes protected by Part II of the Landlord and Tenant Act 1954 (LTA 1954). This means that the tenancy does not come to an end by effluxion of time but is continued on a statutory basis. The tenant has the right to apply for a new tenancy which the landlord can object to on specified grounds under LTA 1954, s 30. For more information, see Practice Note: LTA 1954 business lease renewal—termination. However it is possible to contract out of the provisions of LTA 1954 meaning that these statutory protections will not apply. See Practice Note: Contracting out of the Landlord and Tenant Act 1954—procedures, timing and pitfalls.

However, this Q&A relates to a lease which is contracted out of LTA 1954. Where a lease which is contracted out of LTA 1954

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