Many business tenancies have statutory protection under Part II of the Landlord and Tenant Act 1954 if they have not contracted out of the Act by agreement. Where it applies, the 1954 Act affords security of tenure to business tenants so that a lease of commercial premises does not come to an end on the expiry of the contractual term but continues until terminated in accordance with the provisions of the 1954 Act.
The terms of business lease renewals are usually negotiated between the landlord and tenant following the service of a Landlord’s section 25 Notice or a Tenant’s section 26 Notice. Occasionally, as a landlord, you may seek to rely on fairly limited statutory grounds to challenge a tenant’s request for a new business tenancy. The most usual grounds relied upon are that you intend to develop the building or intend to reoccupy the premises.
We regularly advise both landlords and tenants on the strategic time for serving a statutory notice. If the decision is taken by the tenant to vacate the premises, we can advise on negotiating terms for new premises and, where appropriate, dilapidations.