The Landlord and Tenant Act 1954 is essential for commercial business. It gives the security of tenure to commercial Tenants. Allowing them to remain in occupation of the property after their lease comes to an end, and the right to apply to court for the grant of a new lease. This only applies to commercial premises occupied for business purposes, where the Tenant is in occupation and there is some form of tenancy in place.
A tenant will automatically have security of tenure if they have not been contracted out of the 1954 act. This means that, even though the fixed term of the lease has ended, tenants of business premises have:
- the right to remain in occupation at the end of the contractual term of a lease; and
- the right to apply to the court for the grant of a new lease
If the landlord decides to serve a section 25 notice opposing a new lease they must oppose the new lease on one or more of the following grounds which are covered under section 30 of the act:
- A: Breach of repairing covenant – This is a discretionary ground.
- B: Persistent delay in paying rent – This is a discretionary ground.
- C: Breaches of other obligations This is a discretionary ground.
- D: Availability of alternative accommodation The Court has little or no discretion.
- E: Sub-tenant – possession required for letting or disposing of the whole of the property This is a discretionary ground.
- F: Landlord intends to demolish or reconstruct This is a mandatory ground.
- G: Landlord intends to occupy the premises himself This is a mandatory ground.
Compensation based on rateable value will be due to the tenant if the landlord succeeds on grounds E, F or G
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