A „protected lease“ is a lease that benefits from the security of property under the Landlords and Tenants Act, 1954 („the 1954 Act“). Only a lease that has security allows the tenant to remain on its business premises at the end of its lease and to „maintain“, except in certain circumstances, commits the landlord to grant the tenant a new lease, but it generally does not have more onerous terms than the old lease. The conditions that the landlord can update are the amount of rent payable (which can be changed to the current market rent) and any conditions where there have been changes in the law or general market practices since the original lease was granted that affect the commercial lease. An example of this would be the changes to assignment rights made by the Landlords and Tenants (Covenants) Act 1995. If a tenant benefits from the protection of the 1954 Act, his lease does not automatically end at the end of the rental period, unless the tenant decides to leave the premises no later than the last day of the term. If the tenant leaves after the expiry of the lease, he is not entitled to return to the premises after the expiry of the lease. The 1954 Act contains provisions that: The procedure provided for in Article 26 is not available for tenants of a periodic tenancy or tenants with a fixed-term lease of 1 year or less. The notice must be given to the tenant 6 to 12 months before the termination date indicated in the notice and it must be indicated whether the landlord will object to a new tenancy. If the landlord objects to a new tenancy, the notice must indicate the reasons referred to in section 30 on which it relies.
The landlord can then ask the court to terminate the lease. The tenant can also apply to the court for a new rental agreement before the end of the notice period. If you are not a protected tenant, you may not be entitled to give notices to your landlord or receive notices from your landlord. There are two different ways to terminate a protected commercial lease, both of which require that a section 25 notice be given to the tenant. If the tenant wants the lease to continue, they can send the landlord a „section 26 notice.“ This must be communicated to the landlord between 6 and 12 months before the start date indicated in the notice and indicate the terms of the new lease. This cannot be served after receiving a notice under section 25. To terminate a commercial lease protected by the 1954 Act, a landlord must first serve a legal notice period with a notice date of at least 6 months or more than 12 months after the notice is given. This is not an easy area of law and it is recommended to seek experienced legal advice before a landlord or tenant makes a decision about their business premises. For example, if a landlord unfairly terminated a lease protected by the 1954 Act, they would likely face a court order and a claim for damages; If a tenant leaves his business premises without appreciating his protection under the 1954 act, valuable compensation may be lost. If the landlord wants the lease to continue or if they object to the extension of the lease, they can serve a „notice under section 25.“ It cannot be delivered if the tenant has already given a notice under section 26. If a tenant has a „protected lease“, they have the advantage of securing the property under the Landlord and Tenant Act 1954 („the 1954 Act“).
This means that the tenant has the right to stay and „hold“ in his business premises at the end of his rental. Except in certain circumstances, the landlord is required to grant the tenant a new lease, which is usually no more expensive than the old lease. A non-hostile termination results in a commercial lease being terminated and conditions for a new lease being proposed at the same time. The proposed rent and other terms of the new lease must be included in the notice. The notice must also state that if the parties cannot agree on all the terms of the new tenancy, either party may apply to the court for a new lease and to settle the outstanding terms. Fortunately, the law in England is on your side as a business owner. Under Part II of the Landlords and Tenants Act 1954, commercial leases are protected. This means that most commercial tenants have the legal right to have their tenancy renewed after expiration.
A landlord must pay legal compensation to a tenant of commercial premises who is a multiplier of tax value if he takes possession of the premises for a legal reason. A „protected lease“ is a lease that has the advantage of securing the property under the Landlords and Tenants Act, 1954 („the Act“). The majority of commercial rentals are protected by law. If a lease is protected by law, the lease will automatically continue beyond its expiry date until the landlord or tenant has agreed to terminate it, or until a court decides. In order to terminate the lease, a special termination procedure must be applied. For more information, see our guide „The Relationship Between Landlord and Tenant“. Renewing a commercial lease is a complex area, and anyone thinking about the process should seek professional advice. One of the certified surveyors in our commercial department will be happy to provide it to you. Please also contact us to discuss your needs if you need help finding business premises in the area and surrounding area.
If the landlord proves a legal reason for ownership, the tenant is entitled to a new lease of the business premises after the expiry of the term of the old lease. Prince Evans Solicitors LLP partners with Brendons Commercial Agents to offer owners and tenants of commercial premises a series of free seminars to provide essential advice and information on the impact of the Utilitarian Spaces Act of 1954, including offices, industrial units, shops and restaurants….