Business Tenancies

Question 1

What are the requirements for security of tenure to apply?

Answer 1

• tenancy
• occupied by tenant
• purpose of business

Question 1

What will not benefit from security of tenure?

Answer 1

licence to occupy
tenancy at will

Question 2

When will a tenancy not be deemed as being occupied by the tenant?

Answer 2

Left vacant
Underlet

Question 3

Which tenancies are excluded from security of tenure?

Answer 3

• Agricultural tenancies
• Mining leases
• Service tenancies
• Fixed term tenancies of 6 months or less

Question 4

What is the procedure for contracting out security of tenure?

Answer 4

1. landlord serves warning notice
2. Tenant provides declaration
3. If lease completion at least 14 days away - signed
4. If lease completion less than 14 days away - stat dec

Question 5

How may a landlord end a protected tenancy?

Answer 5

• forfeit if tenant breached covenants and lease allows
• s25 notice

Question 6

How may a tenant end a protected tenancy?

Answer 6

• vacate at end of term
• surrender with landlord’s agreement
• periodic tenancy - notice to quit
• s26 notice to request new tenancy
• s27 notice to leave premises

Question 7

What is a s25 notice?

Answer 7

states when the current tenancy will end – on or after when the contractual term ends

Question 8

What is the time requirement for a s25 notice?

Answer 8

Must be served no less than 6 months and no more than 12 months before date of termination

Question 9

What are the two types of s25 notice?

Answer 9

friendly: landlord willing to renew after termination
hostile: landlord intends to oppose renewal

Question 10

What are the grounds for a s25 notice?

Answer 10

• Persistent and serious breach by Tenant of repairing obligation
• Persistent delay in rent payment
• Serious and persistent breaches of other covenants
• Landlord offers suitable alternative accommodation
• Landlord intends to demolish or reconstruct or carry out substantial construction work requiring possession
• Landlord intends to occupy

Question 11

How may the grounds for s25 notice be classified?

Answer 11

• Can be mandatory (court must grant possession) or discretionary
• Can be compensatory or non-compensatory

Question 12

When will a s25 notice be compensatory or non-compensatory?

Answer 12

o If no fault of tenant = compensatory
o If tenant’s fault = non-compensatory

Question 13

How is compensation for a s25 notice calculated?

Answer 13

o 1x rateable value if business occupied premises for less than 14 years
o 2x rateable value if business occupied premises for 14 years or more

Question 14

Which grounds for s25 notice are mandatory?

Answer 14

alternative accomodation
demolish/reconstruct
intent to occupy

Question 15

What is a section 26 notice for?

Answer 15

Renewing lease

Question 16

What are the requirements of s26 notice?

Answer 16

lease originally granted term or more than one year

Question 17

What are the time requirements for a s26 notice?

Answer 17

• Must be served no less than 6 months and no more than 12 months before proposed commencement date
• Landlord has two months to serve a counter notice on one or more of the grounds

Question 18

What is a section 27 notice for?

Answer 18

to leave the premises

Question 19

What are the requirements for a s27 notice?

Answer 19

• Must give three months of intended termination date, which must be no earlier than contractual term end.

Question 20

When may parties apply to renew the lease at court where a s25 notice is involved?

Answer 20

Any time after notice served

Question 21

What is the deadline for a court application to renew the lease upon a s25 notice?

Answer 21

date of termination specified in notice

Question 22

When may parties apply to renew the lease at court where a s26 notice is involved?

Answer 22

after landlord has served counter-notice or 2 months elapsed since s26 notice

Question 23

What is the deadline for a court application to renew the lease upon a s26 notice?

Answer 23

day before proposed commencement date

Question 24

How will a court decide the terms of a lease renewal if the parties are unable to agree?

Answer 24

term up to 15 years, open market rent

Question 25

What can a tenant do if it does not like the terms of a renewal determined by the court?

Answer 25

tenant has 14 days to ask court to revoke

Question 26

When will a tenancy end if court orders termination of an existing lease?

Answer 26

Three months and 21 days after date of order

Question 27

What are the date rules for service of notice relating to business tenancies?

Answer 27

• Notice expires on same date on which served
• Notice served on last day of month will end on last day of appropriate month if it is shorter