Landlord And Tenant Act 1954

Question 1

What are commercial leases governed by?

Answer 1

Landlord and Tennant Act 1954

Question 2

What are commercial leases governed by?

Answer 2

Landlord and Tennant Act 1954

Question 3

What is the definition of a business tenancy?

Answer 3

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.

Question 4

Heads of terms (12)

Answer 4

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

Question 5

What are the repairing liabilities?

Answer 5

FRI - Fully Repairing and Insuring
IRI - Internal Repair and Insuring

Question 6

What section is contracting out and what is it now known as?

Answer 6

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.

Question 7

What is a AGA?

Answer 7

Authorised Guarantee Agreement

Original tenant can be liable when assignee then assigns to somebody else.