The Landlord and Tenant Act 1954 governs the rights and obligations of landlords and tenants of premises which are occupied for business purposes. Following on from our June update, here we briefly go through five further common but lesser known points.
- Periodic Tenancy - Only a tenant pursuant to a fixed term lease can serve a Section 26 notice. Accordingly a periodic tenant, whilst protected by the LTA 1954, can never instigate the renewal process.
- Key Dates - The lease commencement date and the valuation date in any renewal is 3 months after the court ruling.
- Interim rent - If the tenant discontinues proceedings and the premises were significantly over-rented, it is still possible that the tenant will not get a rental discount.
- Heads of Terms - Deciding not to instigate the lease renewal process because heads of terms have already been agreed might be risky.
- Experts - Using your own retained agent as an expert in the proceedings can be risky.