Due diligence—security of tenure—checklist


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Property expert
Checklists

Due diligence—security of tenure—checklist


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Property expert

Checklists
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The Landlord and Tenant Act 1954 (LTA 1954) gives tenants of business tenancies security of tenure—a statutory right to stay on in their premises after the expiry of the contractual term of the lease and to call for the grant of a new lease.

It is essential on any due diligence exercise to check whether a lease does or does not have security of tenure under LTA 1954 because the application or otherwise of LTA 1954 to a lease of business premises is fundamental to all commercial leases and will, among other things, have an impact on the value of the property, the ease of obtaining vacant possession and any future plans of the landlord for the property.

See Practice Note: Contracting out of the Landlord and Tenant Act 1954—procedures, timing and pitfalls.

Does LTA 1954 apply to the lease?

A business tenant will have security of tenure under LTA 1954 if they are in occupation of premises for the purposes of their business unless:

  1. •

    the lease is actually a tenancy at will; check whether the tenancy is a genuine tenancy

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Jurisdiction(s):
United Kingdom
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