Manual Business Lease Renewals: The New Law and Practice

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Or perhaps you are looking to redevelop the building? Have you been advised how you can require the tenant to leave when their lease ends, despite it being a protected tenancy? If the answer to any of these questions is yes, then you need to factor a new UK Supreme Court judgement into your plans.

Many commercial tenants have the benefit of a protected tenancy under the Landlord and Tenant Act This grants a tenant an automatic right to renew their lease at the end of the lease term on terms decided by the court, if the parties are unable to come to an agreement.

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In summary the grounds are:. As an aside, if the landlord is looking to rely on grounds 1, 2 and 7 above then they are obliged to pay compensation to the tenant. The sums can be significant and amongst other things, will depend on the period of time that the tenant has been in occupation.

The new Supreme Court decision is relevant to landlords looking to obtain vacant possession by proving the seventh ground — the development ground. Until this new judgment, landlords could present to the court planned works the sole purpose of which was to be sufficient to prove the development ground. In other words, the works added no value to the property and were pointless, save they allowed the landlord to maintain in court that the tenant had to vacate as the landlord would otherwise be unable to carry out those works.

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Landlord and Tenant Act 1954 (part 5 of 11)

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Court Report: Renewal of a business lease

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