How does a lease qualify for security of tenure?
If Part II of the Landlord and Tenant Act 1954 (LTA 1954) applies to a tenancy, the tenant will have a statutory right to renew its tenancy at the end of the contractual term. The landlord can only oppose renewal on certain limited grounds.
The LTA 1954 gives security of tenure to business tenancies. Broadly, this means that there must be a tenancy of premises that are occupied by the tenant for the purposes of its business.
To benefit from the protection of the LTA 1954, a tenancy must relate to premises. Although there is no definition of premises in the LTA 1954, it is clear from case law that the term premises should be given a wide meaning. To qualify, the premises must be capable of being occupied. Temporary structures, such as market stalls and newspaper kiosks, will qualify as premises for the protection of the LTA 1954 as will land leased for the purposes of advertising hoardings.
To qualify for a business tenancy, in addition to being for a business tenancy, the lease should also:
· Be for a term of years certain; and
· not have been contacted out of the 1954 Act by Landlord and Tenant.
The effect of "contracting out" of the protection of the LTA 1954 is:
· The tenant has no right to remain in the property at the end of the lease.
· The tenant must leave the property at the end of the lease unless the landlord chooses to offer a new lease.
· The tenant has no right to compensation from the landlord on leaving the property at the end of the lease.
· The tenant has no right to ask the court to fix the rent or the terms of the lease if the landlord chooses to offer another lease.
Posted on 5 February, 2019 by Ortolan