Business Tenancies and The Landlord & Tenant Act 1954
The Landlord and Tenant Act 1954 is highly technical aspect of UK property and this article should be treated as a guide only. It is a summary of the important aspects of the Act and simplifies some of the Act's provisions. Legal advice should always be sought in connection with any specific matter.
I. Business Tenancies
A business or commercial tenancy is defined in the Landlord &Tenant Act 1954. Fairly obviously, a business tenancy or lease is where the tenant occupies the premises for the purposes of its business.
A business tenancy is created when a lease is granted for a period of more than 6 months or in a situation where the tenant has been in occupation over 12 months.
II. Landlord & Tenant Act 1954
The Landlord & Tenant Act 1954 (as amended) is UK Parliamentary act, covering England and Wales. Part I of the act, deals with the protection of residential tenancies, but this is now largely superseded. Part II of the act is the regulations governing business tenancies.
Part II of the act is an essential part of all business leases and grants a degree of security of tenure to a business tenant. If within this act the business tenant may not be simply evicted by the Landlord giving notice to leave or by the ending of a fixed term.
The person granting the lease must consider whether the lease is, either:
III. Security Of Tenure
As mentioned all commercial leases will either be within or excluded from the security of tenure provisions granted by the Landlord & Tenant Act 1954, Part II.
If the lease or tenancy is not specifically and correctly excluded the lease and tenancy will be considered to be within the security of tenure provisions set out in the Act.
A lease with security of tenure affords the tenant a certain amount of protection from being evicted at the end of the fixed term or if they have been in occupation for more than 12 months.
The Tenant has a right to renew the tenancy on a new lease following the end of the lease. If the Landlord wants to regain possession, they must specify and prove one or more grounds as stipulated within the Act.
A tenant will always be entitled compensation when the landlord terminates a protected lease.
IV. Excluding Security Of Tenure
The security of tenure provision conferred by the Act can be excluded by agreement, where the tenant agrees to a statutory declaration confirming this.
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