Q&As

If a lease is protected under the Landlord and Tenant Act 1954 will a side letter be taken into account on renewal of the lease? In what circumstances will a side letter be deemed a personal concession and not renewed with the lease? What are the risks and benefits of using a side letter in these circumstances?

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Published on LexisPSL on 10/09/2019

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

  • If a lease is protected under the Landlord and Tenant Act 1954 will a side letter be taken into account on renewal of the lease? In what circumstances will a side letter be deemed a personal concession and not renewed with the lease? What are the risks and benefits of using a side letter in these circumstances?

If a lease is protected under the Landlord and Tenant Act 1954 will a side letter be taken into account on renewal of the lease? In what circumstances will a side letter be deemed a personal concession and not renewed with the lease? What are the risks and benefits of using a side letter in these circumstances?

When a tenant seeks a new business lease that falls under the Landlord and Tenant Act 1954 (LTA 1954), disputes concerning the terms of the new lease are determined by the court in accordance with LTA 1954, ss 32–35.

LTA 1954, s 35(1) is particularly pertinent as to the exercise of the court’s discretion when determining the terms of a new lease.

While a tenant may seek for a side letter to be taken into account by the court when determining the terms of a new lease, it is unlikely that a side letter will result in rights being incorporated in a new lease that were not contained in the old. In The Picture Warehouse Ltd v Cornhill Investments Ltd a tenant sought, unsuccessfully, to appeal the decision at first instance that a provision concerning parking contained within a side letter to the lease should not be included as an express right

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