fbpx

Business Tenancies

Business tenancies are protected under the Landlord and Tenant Act 1954.

The protection applies to business tenancies granted to most types of business but there are some

exceptions, the most significant is agricultural leases and short term leases.

Please call us for a free no obligation chat on 0800 3 10 11 12

The statutory protection prevents a business tenancy from being terminated in any way other than in accordance with the Act. The exceptions include a tenant or landlord can bring the tenancy to end by way of serving a notice to quit, so long as that is provided for under the lease, surrender of the tenancy and the landlord can forfeit the lease if it is permitted to do so under the lease (most notably if the tenant breaches an obligation). If there is a fixed term lease for the business tenancy and this has come to an end, the tenancy will continue on the same terms included within the lease.

Termination

Business tenancies can be terminated in the above ways but also by the landlord serving a Section 25 Notice or a tenant serving a Section 26 notice.

Note To Terminate

If the landlord requests the business tenancy to end, he must serve a Section 25 Notice on the tenant stating when the tenancy will end. There are formalities to a Section 25 Notice:

1. It must be in writing, the correct form and signed by the landlord
2. It must be given within a specified time frame before the termination
3. It must specify whether the landlord would oppose an application from the tenant requiring a new tenancy with reasons.

Requesting A New Tenancy

If the tenant wants to remain in the premises, he can serve a Section 26 Notice on the landlord. There are formalities to the Section 26 Notice:

1. It must be in writing, the correct form and signed by the tenant
2. It must give a specified time frame to begin the new tenancy.

Notice To Terminate A Tenancy

The tenant can terminate the tenancy. If it is a fixed term tenancy he can give the landlord notice in writing 3 months before the contractual end. If the tenant has remained in the business premises at the end of the fixed term, he can terminate the tenancy by giving the landlord notice in writing at least 3 months in advance.

Opposing A New Tenancy

For various reasons, the landlord may not want to grant a new tenancy to the tenant. However, under the protection of the Act, the landlord can only successfully oppose a new tenancy if it incorporates one of the following;

1. Premises are in disrepair
2. Persistent delay in paying rent
3. Substantial breach of covenant
4. Landlord has offered reasonable alternative accommodation
5. Landlord wants to let whole of premises and tenant was a sub-tenant
6. Landlord intends to demolish premises or complete substantial construction work
7. Landlord intends to occupy the premises himself

Conclusion

The law on business tenancies is extremely complicated and if there is a dispute, it is highly recommended to seek specialist legal advice.

Latest Articles About Commercial Law

Bankruptcy – Judges are Rarely Taken In by Transactions at an Undervalue

The prospect of impending bankruptcy sadly often brings on a flurry of activity designed to put assets beyond the reach of creditors...

Covid-19 – Open For Business And Safeguarding Our Clients & Staff – Announcement

As we were in the first lockdown, we are 100 percent committed and focused on doing the right things for our clients and our community.

IR35 Tax Dispute – Radio Presenter Falls Foul of Intermediaries Legislation

The so-called intermediaries legislation – commonly known as IR35 – has been the source of perennial controversy since it hit the statute book...

Football Club Scores Goal in Dispute Over Sponsorship Deal Commission

Many agents and marketing companies earn their livings by charging a commission on the successful introduction of buyers to sellers...

Why Use Seatons?

  • Practical sensible help and information
  • Fixed, competitive and affordable prices
  • We care about you and fight for you
  • Regulated by the Solicitors Regulation Authority
  • We can help resolve your issue quickly & easily

Latest COVID-19 Information

WE ARE STILL OPEN FOR BUSINESS HOWEVER, OUR FRONT DOORS WILL BE CLOSED TO THE PUBLIC DURING THIS 2nd LOCKDOWN PERIOD from 5th November until further notice. For us all to be as safe as possible, our preference will be to interact with clients by telephone, email and/or zoom meetings ONLY. We would ask that if you have to drop any papers off at our offices, you use our Post Box unless you need anything copying, in those cases please knock the door and one of our receptionists will deal with you at the front door but only if you are wearing protective face coverings. If you require further assistance then a member from the relevant department will telephone you thereafter to discuss. We hope you understand that this is to safeguard you, our staff and to limit as much contact as possible. We may take a little longer to respond to enquiries and deal with matters. Please bear with us. FOR MORE INFORMATION CLICK THE BUTTON BELOW.