When it comes to commercial property, matters between tenants and landlords must be handled very carefully. It is very important that you are provided with the best legal assistance possible, so that you know, whatever your role in the matter, what your rights are as a landlord or tenant.
In this video, one of our Directors, Commercial Solicitor and Head of Residential Conveyancing Naomi Wilson discusses all that you need to know about commercial property law, including how to get your tenant to leave at the end of their term, and some common misconceptions on the matter.
Alternatively, notes from the video are written below.
The Landlord and Tenant Act 1954 protects all commercial business tenants. At the end of the lease, the tenants have a statutory right to require their landlord to grant them a lease with similar terms to the existing lease.
If the landlord wants the tenant to leave at the end of the term, it must be discussed before the lease is signed. Make sure they understand that they are going to contract out of those security of tenure provisions provided by the Landlord and Tenant Act 1954.
If the Landlord wants the tenant to contract out, they will need to sign a declaration before they complete their lease with the landlord, confirming they were served a notice explaining that they were going to have to contract out of the security of tenure provisions. The tenant will sign a declaration to confirm they had been served the notice, and they understand that at the end of their lease term, they would have no protection and would have to vacate.
A tenant must sign the declaration before the lease is completed. If it is signed:
A copy of the notice that was served to the tenant, and the declaration they signed, will be attached to the back of the lease, so everyone knows what was agreed and whether the tenant has to vacate or not.
If the tenants don’t contract out of the 1954 act, they are still protected by law. At the end of the lease term, they will have a right for the landlord to grant them a new lease.
If, as a landlord, you haven’t excluded security of tenure, and you haven’t contracted out of the act, there are specific grounds for possession. You would have to prove to a tenant or the court if:
If you’re a landlord with an agent, they will raise the issue with you and the tenant. If you found the tenant yourself, your solicitor will need to raise the issue with the tenant or their solicitor before the lease is agreed.
It is recommended that you take out legal advice when entering into a new commercial lease, whether you are a tenant or landlord. The importance of a lease can’t be understated as they last for a long time, so you should make sure that you are prepared!
If you need any more advice about your rights as a commercial tenant or landlord, our experienced solicitors are on hand to help guide and advise you through the process.
