Business Tenancies Flashcards
What are the requirements for security of tenure to apply?
- tenancy
- occupied by tenant
- purpose of business
What will not benefit from security of tenure?
licence to occupy
tenancy at will
When will a tenancy not be deemed as being occupied by the tenant?
Left vacant
Underlet
Which tenancies are excluded from security of tenure?
- Agricultural tenancies
- Mining leases
- Service tenancies
- Fixed term tenancies of 6 months or less
What is the procedure for contracting out security of tenure?
- landlord serves warning notice
- Tenant provides declaration
- If lease completion at least 14 days away - signed
- If lease completion less than 14 days away - stat dec
How may a landlord end a protected tenancy?
- forfeit if tenant breached covenants and lease allows
- s25 notice
How may a tenant end a protected tenancy?
- 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
What is a s25 notice?
states when the current tenancy will end – on or after when the contractual term ends
What is the time requirement for a s25 notice?
Must be served no less than 6 months and no more than 12 months before date of termination
What are the two types of s25 notice?
friendly: landlord willing to renew after termination
hostile: landlord intends to oppose renewal
What are the grounds for a s25 notice?
- 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
How may the grounds for s25 notice be classified?
- Can be mandatory (court must grant possession) or discretionary
- Can be compensatory or non-compensatory
When will a s25 notice be compensatory or non-compensatory?
o If no fault of tenant = compensatory
o If tenant’s fault = non-compensatory
How is compensation for a s25 notice calculated?
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
Which grounds for s25 notice are mandatory?
alternative accomodation
demolish/reconstruct
intent to occupy
What is a section 26 notice for?
Renewing lease
What are the requirements of s26 notice?
lease originally granted term or more than one year
What are the time requirements for a s26 notice?
- 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
What is a section 27 notice for?
to leave the premises
What are the requirements for a s27 notice?
- Must give three months of intended termination date, which must be no earlier than contractual term end.
When may parties apply to renew the lease at court where a s25 notice is involved?
Any time after notice served
What is the deadline for a court application to renew the lease upon a s25 notice?
date of termination specified in notice
When may parties apply to renew the lease at court where a s26 notice is involved?
after landlord has served counter-notice or 2 months elapsed since s26 notice
What is the deadline for a court application to renew the lease upon a s26 notice?
day before proposed commencement date
