Commercial tenancies

Copyright © 2025 LexisNexis

Contracting out

A commercial tenancy which is a 'business tenancy' may attract security of tenure under the Landlord and Tenant Act 1954 (LTA 1954). A ‘business tenancy’ is one where property is occupied for the purposes of a trade or profession within the meaning of LTA 1954, s 23, unless specifically excluded by LTA 1954, s 43, or where occupation is as a licensee or tenant at will.

Where security of tenure applies, the end of the contractual term does not mean the end of the tenancy. The tenant is entitled to remain in occupation, and to call for a new lease, unless the landlord can rely on one or more of the statutory grounds for regaining possession. If the landlord can rely on one of the statutory grounds, termination of the tenancy may involve payment of compensation in ‘no-fault’ cases.

If a landlord and tenant agree to exclude, or ‘contract out’ from, the security of tenure provisions in LTA 1954, ss 24–28, the landlord must serve a ‘warning notice’ on the tenant, explaining that security of tenure will not apply. The

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Property News

Court of Appeal on right to manage, strict procedural compliance and equitable tenancies (Avon Freeholds Limited v Cresta Court E RTM Company Ltd)

Property Disputes analysis: The Court of Appeal held that a right to manage (RTM) company’s claim notice was invalid because the company failed to comply with section 78(1) of the Commonhold and Leasehold Reform Act 2002 (CLRA 2002) as it failed to serve an equitable long lessee with a notice inviting participation (participation notice) before serving the claim notice. The Court upheld the Upper Tribunal (UT) (Lands Chamber)’s decision that a tenant of an equitable long lease during the ‘registration gap’ is a ‘qualifying tenant’ within s 75 2002 Act, provided that there is no legal titleholder of that lease. However, the UT had erred in holding that the failure to serve that qualifying tenant with the participation notice did not render the claim notice invalid on the facts of the specific case. Instead, strict compliance is required upon a proper interpretation of the statute, in particular ss 78(1) and 79(2). Written by Sophie Gibson, barrister at Landmark Chambers, junior counsel for the Appellant.

HM Land Registry updates Practice Guide 8

HM Land Registry (HMLR) has updated Practice Guide 8—Execution of deeds. Section 7 has been updated to provide further clarity on when a local authority must provide the attesting witness’ name or role.

The Building Safety Levy (England) Regulations—a quick guide

Construction analysis: The government laid the draft Building Safety Levy (England) Regulations before parliament on 10 July 2025. The draft regulations, made using powers conferred by the Building Safety Act 2022, propose the introduction of a levy on certain new residential developments. The proceeds will contribute to the costs of remediating building safety defects in England. The regulations prescribe the circumstances in which liability to pay the levy arises, who is liable to pay it, and how it will be calculated. In this article, we set out the context for these regulations, and summarise their key features.

Defendant exempt from affordable housing planning obligation (Westminster City Council v Gems House)

Planning analysis: In this claim Westminster City Council sought to enforce a planning obligation to provide affordable housing in accordance with an agreement under section 106 of the Town and Country Planning Act 1990. The defendants were not parties to the agreement and claimed to benefit from an express exemption clause, the interpretation of which was in dispute. The single short issue raised by the claim was whether the first defendant was entitled to claim the benefit of an exemption from the obligation as a person deriving title through a mortgagee of a registered social provider, where the mortgagor had been compulsorily removed from the register after obtaining the mortgage and before the mortgagee transferred its interest to the first defendant. The judgment sets out the principles applicable to the interpretation of these agreements and the competing arguments. The judge found that the defendants’ interest in the affordable housing units came within the claimed exemption, such that they were entitled to sell the units on the open market. Written by Harriet Townsend KC, barrister, at Cornerstone Barristers.

View Property by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

Concurrent leases

Concurrent leasesThis Practice Note explains:•what a concurrent lease is•when it is commonly used•who can enforce (and benefit from) the covenants in the existing lease(s), and•key differences between a concurrent lease and a headlease out of which underleases are grantedIt also looks at key terms

What are the key differences between the definitions of ‘group company’ in the Landlord and Tenant Act

What are the key differences between the definitions of ‘group company’ in the Landlord and Tenant Act 1954 (LTA 1954) and in the Companies Act 2006? Would the definition of group company in LTA 1954 catch a company held by the same ultimate holding company but not the same immediate parent

Implied tenancies at will—holding over after expiry of a contracted-out lease or occupation before

Implied tenancies at will—holding over after expiry of a contracted-out lease or occupation before completion of a new lease [Archived]ARCHIVEDWhere a tenant holds over after the expiry of an existing tenancy that does not benefit from security of tenure, it is an open question whether the

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a
Concurrent leases

Concurrent leases

Concurrent leasesThis Practice Note explains:•what a concurrent lease is•when it is commonly used•who can enforce (and benefit from) the covenants in the existing lease(s), and•key differences between a concurrent lease and a headlease out of which underleases are grantedIt also looks at key terms

What are the key differences between the definitions of ‘group company’ in the Landlord and Tenant Act

What are the key differences between the definitions of ‘group company’ in the Landlord and Tenant Act

What are the key differences between the definitions of ‘group company’ in the Landlord and Tenant Act 1954 (LTA 1954) and in the Companies Act 2006? Would the definition of group company in LTA 1954 catch a company held by the same ultimate holding company but not the same immediate parent

Implied tenancies at will—holding over after expiry of a contracted-out lease or occupation before

Implied tenancies at will—holding over after expiry of a contracted-out lease or occupation before

Implied tenancies at will—holding over after expiry of a contracted-out lease or occupation before completion of a new lease [Archived]ARCHIVEDWhere a tenant holds over after the expiry of an existing tenancy that does not benefit from security of tenure, it is an open question whether the

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a