Business Tenancies Flashcards
What statute imposes security of tenure?
Landlord and Tenant Act 1954
What are the key protections in security of tenure?
1) Right to continue occupation
2) Right to request a new lease
3) Limited landlord control (cannot refuse without valid legal reasons)
What are the benefits of security of tenure for tenants?
1) Long-term business stability
2) Retention of goodwill
3) Avoidance of relocation costs
What are the benefits of security of tenure for landlords?
1) More attractive to tenants
2) Well-maintained property
3) Potentially higher rent at review
What are landlord’s disadvantages for security of tenure?
1) Restricted control over property
2) Complex legal process
What does security of tenure apply to?
1) Any tenancy
2) Occupied by the tenant
3) For the purposes of business
What is a fixed-term tenancy?
A lease for a specified period (e.g. 10 years)
What is a periodic tenancy?
A rolling lease with no fixed end date
What is a license?
A personal permission to occupy (e.g. hotel guests, co-working)
What is a tenancy at will?
No fixed term, can be ended at any time
Which types of occupation fall within security of tenure and which ones fall out of security of tenure?
Within: Fixed-term tenancy, periodic tenancy
Outside: License, tenancy at will
What is meant by ‘occupied by the tenant’?
Tenant must physically occupy the premises at time of end of lease – if it vacates (e.g. underlets whole), it loses security of tenure.
What types of lease tenancies are automatically excluded from security of tenure?
1) Agricultural tenancies
2) Mining leases
3) Service tenancies
4) Short-term fixed leases
(less than 6 months, no renewal) - if its 9 months with a renewal option, it will be included (allow for more than 1 year occupation)
Can parties contract out of security of tenure?
Yes
What is the contracting out procedure?
1) Landlord serves Warning Notice before lease completion
2) Tenant signs declaration agreeing to give up security of tenure
What type of declaration does tenant sign for contracting out?
If given 14+ days before lease, simple declaration is needed. If less than 14 days before, a statutory declaration (before a solicitor) is needed.
What constitutes a statutory declaration?
A declaration before a solicitor
What must a declaration refer to?
Both the notice and declaration in the lease itself
What options does a landlord have near end of lease under security of tenure?
1) Forfeiture (if breach of obligations)
2) Serve a s25 notice
What are the tenant’s options in a protected tenancy?
1) Vacate
2) Surrender lease
3) Serve notice to quit
4) Serve s26 notice to request new tenancy
5) Serve s27 notice to leave premises
What is holding over?
Refers to tenant remaining in possession after contractual lease expires until new lease is valid or valid completion is completed
What is a Section 25 notice?
A formal notice served by landlord to bring protected tenancy to an end, and either
a) Propose renewal (friendly)
b) Oppose renewal (hostile) on statutory grounds
What are key rules for termination date under s25?
Must be on or after contractual term end
What is the rule on timing for s25 notice?
Must be served 6-12 months before termination date
