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Commercial

Business Lease Notices to Tenant to quit (1)
Notices to quit by landlord of business premises
(Part One)            
 
This is part one of a two part article. You can find part two here. 
 
Introduction
The words “lease” and “tenancy” are interchangeable. Different acts use different terms for no obvious reason. However, in general parlance a lease is a formal document. One does not speak of a verbal lease. A tenancy may arise either through verbal arrangements or a written agreement.
 
During the term of the lease, the landlord can obtain possession of the property only for the breach of a lease term by the tenant.
 
What happens at lease expiry?
When a lease expires, the tenant is said to “hold over”, under the terms of the expired lease. So far as the landlord is concerned, there are two routes:
  • either he seeks possession, or alternatively, 
  • he is willing to grant a new lease at a new rent and possibly with changes to other terms. 
If he seeks possession, there are two further alternatives:
  • either the parties jointly obtained an order of the court at the commencement of the tenancy to exclude the tenant’s rights to a renewal at the end of the term –
  • or they did not. 
If they did, the landlord can obtain possession immediately, and the court must grant possession.
 
If the parties did not obtain such an order, the new provisions of The Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 are effective from 1st June 2004.  
 
The Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 made life simpler for parties agreeing to exclude the usual tenant’s security of tenure but far harder for everyone in deciding which of 13 notices to serve in place of the original 2 we previously used.
 
So far as the parties are concerned, the notice types break down into several categories. This note describes the notices a landlord can / must give to a tenant. Briefly, there is no short cut to reading each description and deciding whether it applies to your circumstances.
 
Before starting, a landlord will find it useful to identify: 
  • Is the landlord opposed to the grant of new lease at the expiry of this one?
All the following questions assume first that the landlord is opposed to the grant of a new lease.
                                               
  • Is the tenant entitled under the 1967 act to buy the freehold or an extended lease?
  • Is it that the tenant may be entitled under the 1967 act to buy the freehold or an extended lease?
  • Does the landlord intend that the notice under section 25 of the Act will contain a copy of a certificate given under section 57 of the Act that the use or occupation of the property or part of it is to be changed by a specified date?
  • What is the date specified in the above certificate?
  • What is the date of termination of the tenancy?
Remember too that both the landlord and the tenant can ask questions of the other about the property - but only on the correct form of course.
 
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