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Q. What is Security of Tenure?

14/09/2017

 
A

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 Charlotte Nutting, Associate in Commercial Property at FBC Manby Bowdler explains that a right of Tenure is "a right for a tenant to remain in occupation of a property even though their commercial lease has expired."

 

How is security of tenure affected?

Security of Tenure emerged in the publication of the Landlord and Tenant Act 1954 and was put in place to protect commercial tenants.

What does the Landlord and Tenant Act 1954 do?


It provides protection for commercial tenants in two ways

1. When a lease comes to an end through effluxion of time it enables a tenant to remain in occupation of the property until the tenancy is ended in one of the specific and limited ways as stipulated by the Act.

2. It gives a tenant a statutory right to apply for a new lease of the property.  A landlord can only resist granting a new tenancy on a number of limited statutory grounds which are set out in the Act.

Do all commercial leases have the benefit of security of tenure?

Unless the lease is specifically ‘contracted out’ then all commercial leases will be classed as ‘contracted in’ and will therefore have security of tenure.

How is a lease contracted out of the Act’s security of tenure provisions?

For a lease to be ‘contracted out’ meaning that the tenant does not have an automatic right to remain in the property at the end of the term a formal procedure has to be followed.  This involves the landlord serving a formal notice on the tenant informing them that they are being granted a commercial lease with no security of tenure and this is affected by the tenant swearing a statutory declaration in the presence of an independent solicitor or notary public confirming that they acknowledge they are being granted lease with no security of tenure provisions.

For more information on Security of Tenure, contact Charlotte on 01743 266280 or c.nutting@fbcmb.co.uk.


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