Ending and Renewing Commercial Leases / Business tenancies – Part II

In this article we look at the various Grounds available to the Landlord to end the Lease under Part 2 of the Landlord and Tenant Act 1954.

The grounds for ending the Lease

The landlord may oppose renewal on limited, specific grounds set out in the 1954 Act.

Among these are grounds where the tenant has failed to pay the rent or meet other lease obligations, but the landlord may also seek possession on certain specific grounds where the tenant is not “at fault”.

Briefly, the grounds are:

Ground 6: That the landlord who is seeking possession (or, if that landlord is a registered housing association or charitable trust, a superior landlord) intends to demolish or reconstruct the whole or a substantial part of the dwelling, or to carry out substantial works to any of it, and that the intended work cannot reasonably be carried out without the tenant giving up possession.

Ground 9: That suitable alternative accommodation is available for the tenant or will be available when the order for possession takes effect. Certain proof is required and conditions need to be satisfied, as required by law, where this ground is used.

Ground 10: That rent lawfully due from the tenant is unpaid on the date on which the proceedings for possession are begun, and was in arrears at the date of the service of the landlord’s notice to resume possession.

Ground 11: Whether or not any rent is in arrears on the date on which proceedings for possession are begun, the tenant has persistently delayed paying rent which has become lawfully due.

Ground 12: Where any obligation of the tenancy (other than the payment of rent) has been broken or not performed.

Ground 13: That the condition of the property or any of the common parts has deteriorated owing to the neglect or default of the tenant or any other person residing in the property, and where caused by the person lodging with the tenant or a subtenant, the tenant has not taken such steps as they ought reasonably to have taken for the removal of the lodger or subtenant.

Ground 14: That the tenant or any other person residing in or visiting the property has been guilty of conduct causing or likely to cause a nuisance or annoyance to others, or has been convicted of using the property (or allowing the property to be used) for immoral or illegal purposes, or of an arrestable offence committed in, or in the locality of, the property.

Ground 14A: The property was occupied by a married couple or a couple living together as husband and wife and one or both are the tenant, the landlord is a registered social landlord or a charitable housing trust, and one partner has left because of violence or threats of violence towards them or a family member living with the partner at the time of leaving, and the court is satisfied that the partner who has left is unlikely to return.

Ground 15: That the condition of any furniture provided for use under the tenancy has, in the opinion of the court, deteriorated owing to the ill-treatment by the tenant or any other person residing in the property, and in the case of a person lodging with the tenant or subtenant of his, the tenant has not taken such steps as he ought reasonably to have taken for the removal of the lodger or subtenant.

The following are additional grounds for possession contained in Schedule 10 to the local Government and Housing 1989:

Paragraph 5 (1)(b): Where the landlord is a public body and, for the purpose of redevelopment after the termination of the tenancy, proposes to demolish or reconstruct the whole of or a substantial part of the property relevant to the landlord’s function and

Paragraph 5 (1)(c): That the premises, or part or part of them, are reasonably required by the landlord for occupation as a residence for themselves or any son or daughter over 18 years of age, or their own or their spouse’s farther or mother and, if the landlord is not the immediate landlord, that they will be at the specified date of termination.

The court cannot make an order for possession on the last ground where the landlord’s interest was purchased or created after 18 February 1966, or where the court is satisfied that, having regard to all the circumstances of the case, including the question of whether other accommodation is available for the landlord or the tenant, greater hardship would be caused by making the order than by refusing to make it.

Compensation for the Tenant

A landlord successfully opposing the grant of a new tenancy under certain of the “no fault” provisions must pay compensation to the tenant. The amount payable depends on the rateable value of the premises and how long the tenant has occupied them.

share this Article

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email

Recent Articles