Commercial Leasing Security of Tenure

Remain In Leasehold Business Premises

In short, under the Landlord & Tenant Act 1954, Security of Tenure is a statutory right that allows tenants to remain in the property after the lease has expired. For instance, if you’re the tenant of a commercial property, leaving the property on the day the lease expires could have a serious impact on your business. So, Security of Tenure is a legal provision that will allow business continuity until such time when you’re ready to move your business to another location. Without the 1954 Act, the only option for a tenant who needs to remain in the premises is an application to the courts for a new lease.

Landlords Security of Tenure Exclusion

Often landlords will exclude Security of Tenure from the lease agreement because they want control over the property occupation. They anticipate the 1954 Act will give tenants to liberty to remain in the property and continue to trade. This restricts landlords in a variety of ways, including plans to increase the rent after a period of time. With a rent rise, the present tenant could decide to leave, giving way to a new tenant who’s prepared to pay the new rent. Other plans could include selling the property, complete refurbishment and leasing it to a new tenant with more cash and a business with more profitability.

Issue of Notice to Quit

If a landlord needs to regain possession of leased property, the tenant must be served with a notice to quit the premises. The notice is served under the 1954 Act setting out grounds for reasons to vacate the premises. The reasons may include rent payment delays or non-payment, failure to keep maintenance obligations, any breaches of contract, landlords plans to refurbish or redevelop the property, any business plans and intending to occupy the premises.

Staying After Notice to Quit

The landlord could have automatic repossession of the property if the tenant agrees to exclude Security of Tenure from the lease agreement. But this will limit the tenant’s right to remain in the property once the lease is up. It could prove to be an inconvenience for the business and there might not be an alternative location for the business to continue. It will be up to the landlord’s discretion to decide if the tenant can stay in the premises and for how long. Depending on the circumstances, the tenant might be able to appeal to the courts to remain for a limited period of time whilst running their business, before vacating the premises.

If you’re a commercial landlord or tenant please give us a call to review or draft a lease agreement that includes or excludes Security of Tenure. If you’re already in a leasing agreement and are affected by any of the above issues, please give us a call for an initial consultation. SG

Make An Enquiry

Call us now on 020 7113 4003 or complete our Online Enquiry and we will be delighted to talk with you about your legal matter.

Free Enquiry

Back to all news

Share Article With:

Make An Enquiry

    Global Excellance Awards

    Client Reviews

    DG Law were fantastic throughout our purchase process. We had a short, fixed, timeline to

    Venetia Lawson-Cruttenden [solicitor] is fantastic!  She is always so thorough and efficient and gives you the

    DG Law supported us through a very difficult contractual negotiation to achieve exactly the outcome

    We were very pleased with the way that DG Law helped us on our transaction

    Thanks for all the help from DG Law in pulling together our somewhat complicated loan. 

    DG Law resolved a difficult lease renewal for us and their services were excellent –

    I needed understanding and experienced legal advice. DG Law provided an excellent service at a

    My experience was second to none – the service was professional and personal. DG Law

    DG Law always step up to the plate on our transactions and handle the various

    DG Law was recommended to me and my partner and I received excellent advice –

    Having worked with DG Law a number/couple of times now, I have been really impressed

    DG Law were constantly at hand, and kept pro-active throughout the thorny process of getting

    DG Law organised and ran a very useful session to help to make our team’s

    DG Law came recommended to me and whilst setting up a new business it was

    We were recommended three lawyers to handle the sale of our seven year old successful

    Why Choose Us?

    We live by our core values of transparency, flexibility and being honourable – every day

    We put ourselves in your shoes so we understand your problems from the inside out

    We deliver our advice in a way that is easy to understand