Q&As

Where a commercial tenant is 'holding over' under terms of a business tenancy and has since the contractual expiry been occupying additional offices/rooms of the premises which sit outside the original demise, can a landlord increase the rent for use of the additional areas or is it bound by the same rent as agreed at the time of the last rent review?

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Published on LexisPSL on 29/07/2020

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

  • Where a commercial tenant is 'holding over' under terms of a business tenancy and has since the contractual expiry been occupying additional offices/rooms of the premises which sit outside the original demise, can a landlord increase the rent for use of the additional areas or is it bound by the same rent as agreed at the time of the last rent review?
  • Tenancy at will or periodic tenancy
  • Statutory continuation tenancy

Where a commercial tenant is 'holding over' under terms of a business tenancy and has since the contractual expiry been occupying additional offices/rooms of the premises which sit outside the original demise, can a landlord increase the rent for use of the additional areas or is it bound by the same rent as agreed at the time of the last rent review?

Tenancy at will or periodic tenancy

From the reference to ‘holding over’, this response assumes that the commercial tenant was in occupation under a lease which is contracted out of the Landlord and Tenant Act 1954 (LTA 1954). On that assumption, it is an open question whether the circumstances (including any payment of rent) show that the parties had agreed to enter into a new periodic tenancy or some other (lesser) arrangement (ie a tenancy at will) in respect of the original demise together with the additional space. Ordinarily, if one party allows another into exclusive possession of their land on payment of

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