Lease termination and security of tenure

Question 1

How can the landlord terminate a LTA 1954 lease?

Answer 1

By serving a s.25 notice

Question 2

When must a s.25 notice be served?

Answer 2

At least 6 months, but maximum 12 months, before the termination date given in it

Question 3

What should the tenant do in response to a s.25 notice?

Answer 3

Apply to court before the notice expires (both if the landlord opposes a new tenancy and if doesn’t)

Question 4

How can the tenant request a new tenancy?

Answer 4

Serve a s.26 request

Question 5

When must a s.26 request be served?

Answer 5

At least 6 months, but maximum 12 months, before the proposed start date

Question 6

How can the tenant terminate the tenancy on/after the lease expiry date?

Answer 6

Serve a s.27 notice on the landlord, giving 3 months notice

Question 7

How can the landlord oppose the tenant’s s.26 request?

Answer 7

Serve a counter-notice within 2 months of service, stating the s.30 ground for termination
Tenant must then apply to court for a new lease

Question 8

What are the discretionary s.30 grounds for opposition of a new lease?

Answer 8

• tenant’s failure to repair
• persistent delay in paying rent
• substantial breach of other obligations
• it’s an underletting of part

Question 9

What are the mandatory s.30 grounds for opposition of a new lease?

Answer 9

• the landlord offers the tenant alternative accommodation that’s suitable and on reasonable terms
• landlord intends to demolish/reconstruct, and can’t reasonably do so without possession
• landlord intends to occupy the property for its own business/residence

Question 10

What condition must be met for the landlord to oppose a new lease due to wanting to occupy the property?

Answer 10

Must’ve owned it for at least 5 years before the end of the lease (or owned it for less, but bought it vacant)

Question 11

What is the maximum duration of the new lease?

Answer 11

15 years

Question 12

When does the new lease start?

Answer 12

3 months and 4 weeks after the order is made

Question 13

When is the tenant eligible for compensation for termination of lease?

Answer 13

If it’s terminated due to:
- it’s an underletting of part,
- possession needed to demolish/reconstruct, or
- landlord wants to occupy the property

Question 14

What is the amount of compensation to the tenant for termination?

Answer 14

Rateable value of the holding
BUT: if the tenant + previous tenants in the same business have been in occupation for 14+ years, it’s 2x the rateable value

Question 15

Can compensation to the tenant for termination be excluded?

Answer 15

Any attempt will be void if the tenant/prior tenant in same business have been in occupation for 5+ years