Business Tenancies Flashcards
which tenancies can benefit from security of tenure?
Fixed term tenancy creates exclusive possession and a proprietary interest- binds successors in title to the landlord and CAN BENEFIT FROM SECURITY OF TENURE.
- Periodic tenancy creates exclusive possession and a proprietary interest- binds successors in title to the landlord and can be brought to an end by notice. CAN BENEFIT FROM SECURITY OF TENURE.
what is a business tenancy?
- tenancy.
- in occupation- control of premises.
- purpose of business- any trade, profession or employment (lodgers and free Sunday school doesn’t count).
can parties contract out of security of tenure provisions?
yes, if a fixed term lease.
Landlord must provide notice.
tenant must provide a declaration.
how can a landlord end a business tenancy?
s25 notice.
date of termination must be on or after the date on which the contractual date ends.
Must be served no less than 6 months and no more than 12 months before the date of termination.
friendly- willing to renew lease to start the day after date of termination.
hostile- indicates landlord intends to oppose renewal of the lease. only on statutory grounds.
what are the 7 grounds for a hostile s25?
- persistent and serious breach of the tenant of a repairing obligation (d)
- persistent delay by the tenant in paying rent (d)
- serious and persistent other breaches of covenant (d)
- offers alternative accommodation (m)
- sublet (d) (c)
- landlord intends to demolish or reconstruct the premises or carry out substantial construction work which require possession. (m) (c)
- landlord untends to occupy premises for itself. (m) (c)
tenants options to end a protected tenancy?
- simply vacate.
- surrender lease.
- notice to quit for a periodic tenancy.
- serve a s26- request a new tenancy.
- serve a s27 notice to leave
how can the tenant serve a s26 notice?
s26 can be served either before or after contractual expiry date but proposed commencement date of the new lease cannot be before the contractual expiry date of the lease.
Minimum notice is 6 months and max notice is 12 from date of making request and proposed commencement date.
landlord has 2 months from s26 to serve a counter notice.
how to serve a s27?
must give 3 months of intended termination date.
what declaration must the tenant provide if the landlord is contracting out of business tenancies?
If the lease completion is at least 14 days from the date of warning- simple signed declaration.
If lease completion is less than 14 days away- tenant must provide a statutory declaration.
can the landlord or tenant apply to court to grant a new lease?
YES, but the court is restricted on what lease terms it can impose.
duration of tenancy- based on what is reasonable (not exceeding 15 years).
Rent during tenancy- reasonably be expected to let in the open market.
