Q&As

If a tenant is occupying a property under a continuation of a lease that has the benefit of security of tenure under the LTA 1954, and wishes to serve a section 26 notice on the landlord, can the tenant unilaterally then assign its rights to a new lease under the section 26 notice to a buyer of its business? Or would the tenant be obliged to conform with the provisions in the original lease with regard to assignment (ie to obtain landlord consent etc)?

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Published on LexisPSL on 09/09/2016

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

  • If a tenant is occupying a property under a continuation of a lease that has the benefit of security of tenure under the LTA 1954, and wishes to serve a section 26 notice on the landlord, can the tenant unilaterally then assign its rights to a new lease under the section 26 notice to a buyer of its business? Or would the tenant be obliged to conform with the provisions in the original lease with regard to assignment (ie to obtain landlord consent etc)?

If a tenant is occupying a property under a continuation of a lease that has the benefit of security of tenure under the LTA 1954, and wishes to serve a section 26 notice on the landlord, can the tenant unilaterally then assign its rights to a new lease under the section 26 notice to a buyer of its business? Or would the tenant be obliged to conform with the provisions in the original lease with regard to assignment (ie to obtain landlord consent etc)?

This Q&A raises the nature of the interest which a tenant enjoys when its lease is continued under Part 2 of the Landlord and Tenant Act 1954 (LTA 1954).

Whenever a tenant occupies premises for the purposes of a business which it carries on there, or in which an individual who has a controlling interest carries it on where the tenant is a company, then the lease has the protection of the LTA 1954 and will continue until brought to an end in accordance with the LTA 1954’s provisions (LTA 1954, s 23–24). As the tenancy ‘does not come to an end’ unless so terminated (LTA 1954, s 24(1)), it remains a right which is capable of assignment. Any assignment must be in accordance with the terms of the lease.

Upon assignment, the lease will continue to have the protection of the LTA

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