Q&As

Will using a landlord break clause in the last year of a commercial lease, have the same effect as contracting out of the Landlord and Tenant Act 1954?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 07/04/2021

The following Property Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • Will using a landlord break clause in the last year of a commercial lease, have the same effect as contracting out of the Landlord and Tenant Act 1954?

Will using a landlord break clause in the last year of a commercial lease, have the same effect as contracting out of the Landlord and Tenant Act 1954?

Part II of the Landlord and Tenant Act 1954 (LTA 1954) applies to give security of tenure to tenants occupying premises for the purpose of a business, unless the landlord and tenant have contracted out of its provisions. The default therefore is that business tenants have security of tenure and are therefore protected from losing possession of the premises following the ending of the term of their lease.

LTA 1954, s 24 provides that a relevant tenancy will not come to an end unless terminated in accordance with the provisions of LTA 1954 and further gives the right to the landlord or tenant to apply to the court for the grant of a new tenancy. A landlord can only oppose the grant of a new tenancy on one of the grounds specified in LTA 1954, s 30(1).

A break clause is a contractual provision contained in a tenancy agreement that

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