Landlord And Tenant Act 1954 Flashcards
What are commercial leases governed by?
Landlord and Tennant Act 1954
What are commercial leases governed by?
Landlord and Tennant Act 1954
What is the definition of a business tenancy?
Section 23
The definition in effect states that the business is for a business I.e not for residential/agricultural.
The tenant must be in occupation at the end of the lease, otherwise the tenant does not have security of tenure. So a tenant not in occupation may not have rights of renewal.
Heads of terms (12)
Names and address - landlord and tenant
Demise - area of unit, outside space (parking/garden/communal area) rights of way, often a map
Guarantors
Deposit
Rent (and discussed payment period)
Length of term - often between 5 to 15 years
Repairs - FRI/IRI
Alienation - sublet/assignment + terms of this arrangement
User clause - I.e dairy manufacturers/planning use B2 & B8 generally
Service charge
Legal costs - usually both parties to bear their own legal costs - unless L is in a strong negotiation position
What are the repairing liabilities?
FRI - Fully Repairing and Insuring
IRI - Internal Repair and Insuring
What section is contracting out and what is it now known as?
Now known as a “Health Warning Notice”, previously a section 38.
This allows the L to contract out of the LTA54 - allowing the lease to be determined without the tenant’s security of tenure.
Should serve 14 days before new lease.
What is a AGA?
Authorised Guarantee Agreement
Original tenant can be liable when assignee then assigns to somebody else.