Business tenancies – continuation of leases by security of tenure

The Landlord and Tenant Act 1954 (“the Act”) gives “security of tenure” (certain right to tenants whose lease is coming to an end). This article provides general information in relation to business tenancies.

The Act gives “security of tenure” which is a generic term given to certain rights afforded to tenants.

The Act applies to any tenancy where the property comprised in the tenancy is or includes premises which are occupied by the tenant and are so occupied for the purposes of a business carried on by him or for those and other purpose.

If the Act applies then a tenancy will continue past the fixed term under the lease by operation of section 24 of the Act.

The effect of security of tenure makes matters difficult if a commercial landlord wishes to bring in a better paying tenant (perhaps because rents are rising). But termination can still be effected by following certain procedures.

For example:

1.    Serving a Landlord’s notice pursuant to section 25 of the Act.

2.    Serving a Tenant’s notice (request) under section 26 of the Act.

3.    Surrender.

4.    Forfeiture.

5.    Tenant serving notice to quit under a periodic tenancy.

6.    Tenant serving notice under section 27 of the Act.

7.    Tenant ceases to be in occupation for business purposes on the fixed date.

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