Q&As

Is it possible by agreement (on the grant of a lease) to substitute the compensation provisions in the Landlord and Tenant Act 1954 (assuming termination is on ground(s) giving rise to the right to compensation) with terms that determine the sum payable in a manner agreed (at grant) between the parties?

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Produced in partnership with Carl Fain of Tanfield Chambers
Published on: 29 April 2020

The difficulty with this arrangement is that it could fall foul of section 38(2) of the Landlord and Tenant Act 1954 (LTA 1954) which will make the Agreement void.

LTA 1954, s 38(2) provides:

‘Where—

(a) during the whole of the five years immediately preceding the date on which the tenant under a tenancy to which this Part of this Act applies is to

Carl Fain
Carl Fain chambers

Tanfield Chambers

Property and chancery practice with a focus on landlord and tenant. Work includes all aspects of commercial and residential landlord and tenant including dilapidations claims, business tenancy renewals, enfranchisement, rights of first refusal, RTM, appointment of managers and service charge disputes.

Real property disputes including mortgage related claims and in particular LPA receivers, property related professional negligence, co-ownership, easements, nuisance, restrictive covenants, boundary disputes and Party Wall Act matters.

As well as appearing frequently in the County Court and the High Court, Carl has represented clients in the First-Tier Tribunal (Property Chamber), the Upper Tribunal (Lands Chamber) and the Court of Appeal.

"Very bright, gets on well with clients and is a terrier in court" and "he's extremely knowledgeable, doesn't balk at any points and is ready with the answers." Chambers UK Bar Guide 2018 (Real Estate Litigation)

"A hidden treasure; he is very bright, good in court and with clients, and always goes the long mile without being asked."

Legal 500 2017 (Property Litigation)

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Agreement definition
What does Agreement mean?

Agreement is broadly defined under EU and UK competition law so as to include activities ranging from a legally enforceable contract between two or more parties to an informal albeit clear understanding, whether entered into in writing or verbally.

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