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Contracting out of the Landlord and Tenant Act 1954—procedures, timing and pitfalls
Business tenancies guidance:
1954 Act—surrender of business tenancies

The following Property Disputes practice note provides comprehensive and up to date legal information on 1954 Act—surrender of business tenancies

Practice notes
A buyer is purchasing a commercial property and contracts have been exchanged. The tenant of the property has been in occupation under a business tenancy protected under the Landlord and Tenant Act 1954 (LTA 1954). The seller served a section 25 notice stating they would not oppose the grant of a new lease. However, the tenant has made no application, a new lease has not been agreed and all the agreed extensions to do so have now expired. In this scenario, has the tenant lost their right to security of tenure?; when the buyer completes the purchase of the property, assuming they want the tenant to vacate, does the buyer still need to apply for a court order against the tenant (and would that require a notice to quit)? or can the buyer simply peaceably re-enter the property?; would the buyer be able to pursue the tenant for damages for the tenant's occupation when their protection under LTA 1954 expired?

A buyer is purchasing a commercial property and contracts have been exchanged. The tenant of the property has been in occupation under a business tenancy protected under...

Q&As
A commercial lease has been forfeited for non-payment of rent and the landlord wishes to grant a new lease to a new tenant. The Land Registry (LR) is insisting on serving notice on the tenant of the title closure notice application, resulting in delay before grant of the new lease. What authority is there to allow LR to delay the application and insist on serving this notice? How can this be expedited?

A commercial lease has been forfeited for non-payment of rent and the landlord wishes to grant a new lease to a new tenant. The Land Registry (LR) is insisting on serving...

Q&As
A commercial tenant has remained in occupation for several years after the expiry of a contracted out lease. Rent has been demanded and paid but there have been no negotiations for a new lease. It seems that a periodic tenancy may have arisen because the rent is paid monthly in advance. Can the tenant serve a section 26 request for a new lease?

A commercial tenant has remained in occupation for several years after the expiry of a contracted out lease. Rent has been demanded and paid but there have been no...

Q&As
A commercial tenant is holding over under the terms of a lease within the security of tenure provisions in the Landlord and Tenant Act 1954. If the landlord wants to remove the tenant (and there being no breach of tenant covenants) is the only means of doing this by service of a section 25 notice?

A commercial tenant is holding over under the terms of a lease within the security of tenure provisions in the Landlord and Tenant Act 1954. If the landlord wants to...

Q&As
A company is in occupation of business premises. In 2013, terms were agreed for a protected business lease of the premises but the lease wasn't executed. Nevertheless the company took up occupation in January 2014 and has remained in the premises since. It has spent money investing in the property. No rent has ever been demanded or accepted. The company has tried to pay rent but to no avail and the landlord's solicitors have been notified that a specific rent account had been set up by the company for payment of rent when demanded. The landlord's solicitors had indicated they did not consider the company to have a tenancy of the premises as rent had never been paid. By virtue of remaining in the premises, has the company acquired a protected business tenancy on the terms intended by the parties as set out in the final draft lease? Failing that, has the company acquired a tenancy at will? The landlord's solicitors have served a notice seeking information pursuant to the LTA 1954, s40.

A company is in occupation of business premises. In 2013, terms were agreed for a protected business lease of the premises but the lease wasn't executed. Nevertheless the...

Q&As
A contracted out business lease has expired and the tenant now occupies under a periodic tenancy. How can the tenancy be brought to an end?

The following Property Q&A provides comprehensive and up to date legal information on A contracted out business lease has expired and the tenant now occupies under a...

Q&As
A freeholder granted a 99-year lease to a retailer (Y), Y granted a ten-year lease substation list to an electricity provider (E), and then Y granted a 15-year lease of whole to a retailer (A) subject to the substation lease. A’s lease has expired and the Landlord and Tenant Act 1954 proceedings are ongoing. E is also in occupation. Who can grant a new tenancy to E?

A freeholder granted a 99-year lease to a retailer (Y), Y granted a ten-year lease substation list to an electricity provider (E), and then Y granted a 15-year lease of...

Q&As
A landlord and a tenant are in dispute about whether the tenant’s current use of the premises is permitted by the user clause in the lease. The landlord proposes to vary the user clause to reflect the tenant’s current use of the premises but the tenant opposes this because it believes that it is not in breach of the user clause and also because the variation could lead to an increase in rent upon review. Is this a dispute that could be referred to a professional arbitration on court terms expert or arbitrator?

A landlord and a tenant are in dispute about whether the tenant’s current use of the premises is permitted by the user clause in the lease. The landlord proposes to vary...

Q&As
A landlord and tenant of a Landlord and Tenant Act 1954 lease have agreed terms for a new lease with a reduced rent. Is there any issue with the tenant not making an interim rent application until after completion of the renewal lease?

A landlord and tenant of a Landlord and Tenant Act 1954 lease have agreed terms for a new lease with a reduced rent. Is there any issue with the tenant not making an...

Q&As
A landlord client is entering into an agreement for lease, subject to completion of works. The agreement for lease anticipates that the lease plan may have to be amended before completion of the lease. The amendment will not affect the demise boundary. The changes are likely to relate to the location of buildings within the demised area. Would these changes to the plan affect the validity of the lease exclusion process as an LTBT 1 will need to be served before the agreement for lease is exchanged?

A landlord client is entering into an agreement for lease, subject to completion of works. The agreement for lease anticipates that the lease plan may have to be amended...

Q&As
A landlord company has let commercial property on a two-year lease, which has now expired. The tenant has remained in occupation while the property is being marketed. The tenant has now stopped paying rent and the landlord wishes to recover possession. What options are available assuming the tenancy is either a tenancy at will or a periodic tenancy? What are the implications if the landlord sends a monthly statement of arrears and continues to charge interest on arrears of rent from the date of demand for possession?

A landlord company has let commercial property on a two-year lease, which has now expired. The tenant has remained in occupation while the property is being marketed. The...

Q&As
A landlord has served a non-hostile section 25 notice offering a tenant a new lease, but the terms of the new lease have not been agreed. The section 25 notice has now expired, the tenant remains in occupation and neither the landlord, nor the tenant has made an application court. The landlord now wants the tenant to vacate the property—what steps does the landlord need to take to regain possession of the property?

A landlord has served a non-hostile section 25 notice offering a tenant a new lease, but the terms of the new lease have not been agreed. The section 25 notice has now...

Q&As
A landlord is granting a new lease to a charity. The current lease to the charity was not terminated by a section 25 notice (although the term has expired) but the parties have just agreed the terms of a new lease. Should a section 25 notice still be served or will the current lease terminate as soon as the new one is granted? The current lease is registered at HM Land Registry with its own title. Should the landlord request that the tenant close this title or can the new lease be registered against it?

A landlord is granting a new lease to a charity. The current lease to the charity was not terminated by a section 25 notice (although the term has expired) but the...

Q&As
A landlord leases a building which comprises a number of flats and a basement to a housing association. The flats are let on assured shorthold tenancies (ASTs), the basement has its own separate access and there are common parts to the building, ie stairways and halls. Would the housing association's lease be protected under Part II of the Landlord and Tenant Act 1954?

A landlord leases a building which comprises a number of flats and a basement to a housing association. The flats are let on assured shorthold tenancies (ASTs), the...

Q&As
A landlord served a break notice and section 25 notice on a tenant. In their status as competent landlord, the landlord then served a section 25 notice on a subtenant specifying grounds 30(1)(f) and (g) under the Landlord and Tenant Act 1954. Does the tenant need to remain in occupation until the section 25 notice expiry date in order to be entitled to statutory compensation? Would the landlord also need to pay statutory compensation to the tenant?

A landlord served a break notice and section 25 notice on a tenant. In their status as competent landlord, the landlord then served a section 25 notice on a subtenant...

Q&As
A landlord served an opposed section 25 notice on the basis of persistent failure to pay rent—resulting in significant arrears of rent—and other breaches of lease. The tenant has until June 2020 to issue proceedings. Is the position affected by the Coronavirus Act 2020? The landlord wishes to gain possession as soon as possible.

A landlord served an opposed section 25 notice on the basis of persistent failure to pay rent—resulting in significant arrears of rent—and other breaches of lease. The...

Q&As
A landlord serves a break notice on the tenant and but the notice is addressed to the previous tenant. The other details of the notice are correct. Is the notice valid?

A landlord serves a break notice on the tenant and but the notice is addressed to the previous tenant. The other details of the notice are correct. Is the notice valid?...

Q&As
A landlord serves a notice under section 25 of the Landlord and Tenant Act 1954 (LTA 1954) opposing the grant of a new lease on ground (f) of LTA 1954, s 30 based on its intention to redevelop the property. The tenant does not make a claim for a new lease and vacates the property at the expiry of the notice period, but later learns that the landlord either did not redevelop the property or the works were not substantial enough to have made out the ground of opposition. What recourse is available to the tenant? Can the tenant challenge the validity of the notice at this stage or would they have missed the opportunity to do so by not making a claim for a new lease when they had the chance to?

A landlord serves a notice under section 25 of the Landlord and Tenant Act 1954 (LTA 1954) opposing the grant of a new lease on ground (f) of LTA 1954, s 30 based on its...

Q&As
A landlord serves a section 25 notice stating that the landlord does not oppose renewal of the lease. Can the landlord subsequently (in negotiations) ask for a higher rent than that contained in the section 25 notice?

A landlord serves a section 25 notice stating that the landlord does not oppose renewal of the lease. Can the landlord subsequently (in negotiations) ask for a higher...

Q&As
A landlord serves a section 25 notices in respect of a property. The notice includes a proposal for a new lease, however, due to the landlord's proposed re-development of the building, the proposal includes the ground floor only (the tenant currently occupies ground and first floors under the current lease). If the tenant is happy to give up possession of the first floor as proposed, is he still entitled to statutory compensation in respect of that part it is giving up? And is the tenant required to provide vacant possession (currently the first floor is let on an assured shorthold tenancy)?

A landlord serves a section 25 notices in respect of a property. The notice includes a proposal for a new lease, however, due to the landlord's proposed re-development of...

Q&As
A landlord wishes to terminate a statutory tenancy under s 25 of the Landlord and Tenant Act 1954 at the earliest opportunity and oppose renewal. Can the landlord specify the contractual term date in the s 25 notice as the date for termination or is the earliest date it can specify the day after the contractual term date?

A landlord wishes to terminate a statutory tenancy under s 25 of the Landlord and Tenant Act 1954 at the earliest opportunity and oppose renewal. Can the landlord specify...

Q&As
A lease has been holding over under the Landlord and Tenant Act 1954 for over a year. The landlord requires the new term to run from the date after the initial term ended (ie over a year ago) and for the increased rent to be paid from this date. Are they able to insist on and enforce this, or will the new term and new level of rent only be payable from the date of completion given that the old lease is holding over and in existence up to that date?

A lease has been holding over under the Landlord and Tenant Act 1954 for over a year. The landlord requires the new term to run from the date after the initial term ended...

Q&As
A lease which was excluded from Landlord and Tenant Act 1954 (LTA 1954) expired two years ago and the tenant has been holding over ever since and paying rent. The tenant has agreed to vacate the property at the end of this year. As the lease was not protected by LTA 1954 does the landlord have to comply with the provisions of LTA 1954, s 38A(4) and as the lease is not going to be surrendered for another six months, is an agreement to surrender required?

A lease which was excluded from Landlord and Tenant Act 1954 (LTA 1954) expired two years ago and the tenant has been holding over ever since and paying rent. The tenant...

Q&As
A licence by a landlord of commercial premises to its tenant to sublet on a contracted out basis was never completed. The sublease, however, was completed but the tenant’s solicitor is unable to find the LTA 1954 notices and declaration which were purportedly completed by the subtenant. Can the LTA 1954 notices be reserved now, and a statutory declaration sworn by the subtenant retrospectively?

A licence by a landlord of commercial premises to its tenant to sublet on a contracted out basis was never completed. The sublease, however, was completed but the...

Q&As
A limited company is the landlord of a lease which is inside the Landlord and Tenant Act 1954 which is about to expire. The landlord wishes to object to a renewal of the tenancy within the Act on ground (g)—premises required for own use. However, the said company changed hands recently so while remaining the same landlord for over five years, shareholders and therefore beneficial owners have changed within the last 18 months. Will the company landlord still be able to use ground (g)? Is there any case law dealing with this issue?

A limited company is the landlord of a lease which is inside the Landlord and Tenant Act 1954 which is about to expire. The landlord wishes to object to a renewal of the...

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