Q&As

The owner of an estate of residential and commercial properties wishes to let a cottage on the estate to a local pub business for use as residential accommodation for pub employees. Is the lease from the estate owner to the pub owner a residential or business lease?

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Published on LexisPSL on 23/02/2016

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

  • The owner of an estate of residential and commercial properties wishes to let a cottage on the estate to a local pub business for use as residential accommodation for pub employees. Is the lease from the estate owner to the pub owner a residential or business lease?
  • Residential or business lease
  • Service tenancy v service occupancy
  • Service occupancy
  • Service tenancy
  • Conclusion

The owner of an estate of residential and commercial properties wishes to let a cottage on the estate to a local pub business for use as residential accommodation for pub employees. Is the lease from the estate owner to the pub owner a residential or business lease?

Residential or business lease

As to whether the lease from the estate owner ('E') to the pub owner ('P') is a residential or business lease will depend on the degree of control retained over the cottage by P when they allow the pub employee into occupation.

In particular see Halsbury's Laws of England: Business and Agricultural Tenancies: Protection of Business Tenancies: 1598. Meaning of 'business' which states that:

'Although the business of a property company may be the letting of premises, in order that it can be said to occupy for the purposes of its business the premises which it has sublet, it must retain control over them, and a letting of a dwelling house to a tenant for the purpose of the tenant making a profit from subletting is not of itself a letting for business purposes. Whether an activity which is carried on by an individual tenant is a trade, profession or employment so as to attract the statutory protection is a question of degree to be

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