Commercial Property

20th July 2017
Commercial Property image

Commercial Property

Commercial Property – Leasehold

Tenants Security of Tenure under the Landlord and Tenant Act 1954

This Act provides the statutory regime under which commercial tenants (usually) have a right to renew their tenancy at the end of the contractual term.

The tenant can therefore often require the landlord to grant a further lease on similar terms to the existing lease unless the landlord can take advantage of some of the exceptions in the Act.  These exceptions are however very narrow (provided that the tenant has been complying with its lease covenants) and often the landlord has to pay compensation to the tenant even if the landlord can exercise them.

For this reason many landlords require their tenant to contract out of these provisions.  This now involves a system of serving a formal notice on the prospective tenant at the outset of the lease.  The tenant then needs to sign a declaration confirming that he is prepared to take a lease without the usual statutory protection.  Unless a statutory declaration is used there will need to be a 14 day cooling off period between the service of the notice and the signing of the declaration / lease completion.

Where a tenant has the protection of the Act the landlord will need to serve at least 6 months written notice on the tenant prior to termination of the lease.  This notice (usually called a “Section 25 Notice”) either contains details of the landlords proposals for any renewal lease or states the exceptions that the landlord is intending to exercise to avoid the requirement to grant a new lease.

The Act is convoluted and both landlord and tenant need to be aware that failure to meet with the formalities and requisite deadlines can easily have serious consequences.  Even where these are complied with, court proceedings to determine new lease terms (where a tenant is enforcing its right to renew) or determine the landlord’s exercise of the exceptions are sometimes necessary.

Landlords therefore need to be careful that they do not rush into granting a lease to a commercial tenant without considering whether or not they are actually prepared to let the property on what may, in effect, be a permanent basis.

From the tenants’ perspective they should not agree to contract out without considering what might happen at the end of the term.  Potentially the Tenant stands to loose the goodwill they may have built up at those premises and possibly even some value to their stock and equipment, if they have to leave the premises at the end of the term.  It may also allow the Landlord to negotiate any new rent under a proposed new lease from a position of greater strength.

Given these competing interests between landlord and tenant it is often an important item to be discussed during lease negotiations and established in the Heads of Terms.

This is a complex area and both parties should take specific legal advice.  This note is merely a very basic guide and the applicability of the Act to a particular lease will vary depending on it’s terms and surrounding circumstances.

For more information on this contact James Turner

Maples supporting Macmillan Coffee Morning image

Maples supporting Macmillan Coffee Morning

On 29th September 2017 Maples Solicitors LLP will be hosting a coffee morning as part of Macmillan’s “World’s Biggest Coffee Morning”.

Tea, coffee and cakes will be served from 10:00am until 1:00pm and all donations received will go to Macmillan Cancer Support to assist them with providing medical, emotional, practical and financial support to those facing cancer and their families.

At the same time, Maples will also be running a free Wills, Lasting Powers of Attorney and Probate clinic so that whilst you are in the office you may take the opportunity to discuss any of these with one of the Private Client Team with no obligation to commit. You can use the time to raise any questions you may have about making a Will, who you could appoint as Executors, whether you need a Power of Attorney or how a Power of Attorney works, for example.

Maples hope to see their existing clients join them for the coffee morning and very much look forward to meeting new people- everyone is welcome!

If you would like to discuss any matters in relation to Wills, Lasting Powers of Attorney or any Probate related matters prior to the coffee morning then please contact one of the lawyers in our private client team:-

Jane Mawer-
Jamie Dobbs-
Faye Blair-

Or telephone the office on 01775 722261 and ask to speak with one of the team.

Read More


Gemma Mayer LLB

"I would highly recommend Maples Solicitors, especially Gemma Mayer, for any conveyancing work. The level of support and professionalism was excellent at all times. I also felt if I needed to ask or clarify anything that it was not an issue. Buying and selling a house is stressful enough, but Gemma helped me through it step by step."

Anita Toal LLB BA

"I think you are brilliant. You can use my comments above. You are efficient, friendly and quite clearly very good at what you do. Mainly you don’t leave people hanging around too long for." "So easy to talk to her and she understood what I wanted. She put me at ease and I cant thank her enough"

Daven Naghen LLB

"I felt the service I got from Maples was excellent and was very honest all through the process. I would recommend Maples as a first class Solicitors group"

Faye Blair LLB

Faye was excellent, sensitive and acted very well to the time constraints we faced. Great service and dealt with compassion at such sad times made the process less painful very professional.

Jamie Dobbs ACILEx

Over the last forty years I have cause to deal with many law firms both in a personal and professional capacity, including some ‘top’ London Companies. In all of those dealings I have never found anyone as proactive and so willing to offer help and advice as Jamie Dobbs. During the last two years Jamie guided my parents through the completion of Lasting Powers of Attorney. Helped myself with the use of the LPA and recently dealing with Probate and Estate Administration following their death.

Mike Pepper MA

This is the second time we have used Mike Pepper at Maples Solicitors in the sale of our house. We cannot praise Mike enough for the highly efficient and professional service that he has provided us with. He is by far the best solicitor we have ever worked with, and the service that he has provided us with has gone far and beyond anything we have ever experienced. We have found the whole process to be a very relaxing experience.

Claire Smith FCILEx

Claire Smith has been amazing in every way. I highly recommend her and I am so grateful for all her help. She’s professional on all levels, reliable, extremely organised and I will be recommending her to everyone. I’m very lucky to have had her representing me and I can’t thank her enough. She is an asset to Maples. Thanks so much Claire!

Anita Zaborniak

We found it a pleasure to deal with Anita Zaborniak, she was most helpful and informative and kept us up to date with the progress of the purchase of our new home. If we were to move again we wouldn’t hesitate to use Maples again.