Legal Advice
Can a periodic business tenant in occupation of premises obtain a lease from their landlord?
Furlough coming to an end: 30 September
You are a commercial tenant running a business from premises and you now want your landlord to grant you a written lease for a fixed term. a new lease, the tenant will be lease, perhaps in order to grow resolve the dispute which could be or sell your business, you will not unsatisfactory to both parties and able to obtain a new lease on be able to serve on the landlord the uncertaintly of a court case terms to be agreed or if not a notice under section 26 of the could be avoided by agreeing agreed as determined by the 1954 Act requesting a new lease. upon lease terms. court. Accordingly landlord Aneilthe Balgobin The right to do this only applies cannot simply impose any terms One way in which the landlord Head of Employment to tenants whose tenancy was it wishes and the court will look can regularise the position is to Rights under a periodic granted for a fixed term certain at the implied terms of the periodic serve a written notice under tenancy exceeding one year or for any tenancy when considering what section 25 of the 1954 Act term and thereafter from year It is likely that you are a periodic by the end of the month or will the be tenancy and At the end of June 2021 there There are some businesses whoinhave terminating terms should be inserted the to year. tenant and if you have been in stating whether or not the landlord new lease. occupation of business premises were approximately 1.9million returning todo? work. Weisare assisting So what should the tenant willing to grant a new lease and theirThe buried heads in the sand and landlord is therefore likely to paying rent for more than if so on what terms including rent people still on the Furlough Negotiate both with Employers your be agreeable to grant a lease to 12 months, you will have become and individuals with and length of lease. have not made appropriate fallback a periodic tenant especially since landlord a protected business tenant with scheme. If the landlord opposes the grant it cannot increase the rent without the rights granted by the Landlord redundancy issues. A periodic protected tenant should plans the furlough scheme of a new lease, then it may only for when first terminating the lease under & Tenant Act 1954 Part 11. be in a strong position to negotiate The Furlough scheme refuse on certain grounds set out As such the landlord cannotfinally comes the Act, and the position will a new lease with the landlord who Many businesses are having to most commonly ends – there’s been 18 months’ worth in the statute, simply your lease by remain uncertain. to an terminate end on 30 September 2021would andbe keen to regularise the refusal on the grounds of giving you one month’s notice. position. Without a lease, the restructure in order topersistent survive rent andarrears, being Taking legal advice able funding of state propping up some whilst have several dates landlord cannot unilaterally It wouldthere need to servebeen you with to demonstrate an intention to It is best to seek legal advice first increase the rent, or regulatemeans the a statutory notice under the 1954 that usually redundancies. occupy the premises for itsbusinesses own in the past where the scheme was that are not economically before finalising terms in principle use of the premises or prevent Act giving you not less than 6 nor use or an intention to redevelop. with your landlord to ensure that thelike tenant from sharing if handled badly, However, more than 12 notice andit looks pencilled to months’ end, this time viable oncethe theterms Furlough scheme ends. of the new lease are not The landlord must demonstrate occupation or assigning its you will then have the right to thecause ability to do these things if itapply willtobe onerous and reflect the terms of tenancy. It is redundancies unlikely that the can often thedefinitely court for aending. new lease necessary by producing plans and your existing oral tenancy. Where landlord could easily sell its on terms to be agreed or decided We are ablethere to offer guidance to both to spend money they and do the necessary specifications interest in thebusinesses property while is a dispute with the landlord upon byhow the court. Given close we are to this date, planning permissions. This can a protected periodic tenant and the landlord is taking steps to businesses and individuals who may Can you require the not have,for when out with afor a landlord make it difficult to most furloughed workers shouldcontiuues know in occupation an they set terminate the tenancy without landlord to grant a new regain possession. indefinite period. offering acceptable new lease whether plan to cut costs, not increase them. find themselves in such situations. lease? they will be made redundant terms, it will be important to seek If the tenant is a protected With oral tenancy agreements if legal advice as to your rights and business tenant and the landlord If the time has come that you a dispute arises the court would how to protect your position. does not have grounds to oppose need the certainty of a fixed term need to hear evidence and try to You may have been paying rent monthly or quarterly for some years, but your landlord has still not given you a fixed term lease. What can you do to force the landlord’s hand?
Our team of expert commercial solicitors will be pleased to advise. Please contact Aneil Balgobin If you need expert legal advice, please contact Alan Zeffertt by email on aze@anthonygold.co.uk if you would like assistance: E: aneil.balgobin@anthonygold.co.uk T: 020 7940 3950 or ask for him or a member of our Commercial Property Team, telephone 020 7940 4000.
Anthony Gold Solicitors specialise in many different areas of law Our solicitors are experts in their fields. We are negotiators and litigators,
committed to doing whatever is best for our clients.
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