Commercial Tenancies

According to the Property Data Report 2014, over half of the UK’s commercial property is now rented by occupiers.

Business owners who are aware of the distinctive characteristics of commercial tenancies therefore can be at a significant advantage in business.

At Seatons, our team of highly trained legal advisors have a wealth of experience in commercial tenancy matters and provide clear, easy to understand legal advice at low sensible fees. For more information, feel free to give us a call on 01536 276300.

Statutory Protection

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 being agricultural leases and short term leases.

The statutory protection grants a business tenant Security of Tenure. Where a business tenant has security of tenure, it means that the business tenancy will automatically continue at the expiry of the lease term on the same terms, until it is terminated in one of the ways specified in the Act. In addition, the business tenant can apply to court for a new tenancy and the landlord may only oppose on certain statutory grounds (including paying compensation by the landlord to the tenant if the tenant’s application is unsuccessful). A renewed tenancy will also benefit from security of tenure.

Many leases contract out of the Landlord and Tenant Act 1954 meaning that the tenant’s rights are significantly reduced. If a landlord insists on opting out of the Landlord and Tenancy Act 1954, the tenant must seek legal advice and sign a declaration that they have been advised on the effects of this.


Depending on when the original lease was entered into, the tenant could also potentially be liable for the enforcement of all obligations and covenants until the end of the lease term. This applies also in situations where the lease was sublet, or even assigned to a new tenant. The rules encompassing this area of law make up a complex framework, and it is best practice to seek professional legal advice for expert clarification first.

Authorised Guarantee Agreements

Depending on when the original lease was entered into, the landlord may also demand the tenant to enter into an Authorised Guarantee Agreement when subletting/assigning the premises to another tenant. The landlord has the power to do this in situations where there are no rights granted in the lease for the tenant to assign the premises. An Authorised Guarantee Agreement must be signed by the tenant and makes the tenant liable for the obligations under the lease for the duration of the term, should the new tenant be unable to carry them out.

Gemma McKimmie - Seatons Solicitors

Commercial Property Specialists In Corby & Kettering

Hello, I am Gemma McKimmie and I am the Head of Seatons Solicitors Commercial Property Department. We aim to provide our clients with an outstanding legal service.

We will help and support you and most importantly we work hard for you.

Please contact us for a free, no obligation chat at either our Corby office on 01536 276300 or our Kettering office on 01536 311690 or contact us online.

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Rights Of The Commercial Tenant

The Landlord and Tenant Act 1954 is an important piece of legislation when it comes to commercial leases as it confers security of tenure on commercial tenants and regulates the manner in which commercial leases can be terminated.

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