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Ending a commercial tenancy where LTA 1954 Part 2 excluded

Ending a commercial tenancy where LTA 1954 Part 2 excluded

Postby crusty » Wed Oct 04, 2017 4:33 pm

I am a landlord of a property where the 1954 Act has been excluded and the contractual lease ends next April. Do I serve a s25 LTA notice to determine or some other form? The lease was for 5 years with rent being paid monthly in advance.

If not a statutory notice what format should I use?
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Re: Ending a commercial tenancy where LTA 1954 Part 2 exclud

Postby theycantdothat » Wed Oct 04, 2017 8:02 pm

Do not serve a section 25 notice as it will be of no effect. Apart from that, you do not want to do anything which gives the tenant an excuse to argue that the tenancy is not contracted out.

Since the the lease is for a fixed term no notice is required to end it. It ends by "effluxion of time".

You need to be careful not to do anything which may have the effect of starting a new tenancy or agreeing to grant a new tenancy which is not contracted out.
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Re: Ending a commercial tenancy where LTA 1954 Part 2 exclud

Postby dls » Fri Oct 06, 2017 5:31 am

You also need to be quite sure that a renewal has been successfully excluded. Get confirmation from a lawyer who sees the documents that the renewal has been excluded. It need not be as easy as people think.

As usual TCDT is exactly correct - be careful not to do anything to suggest that you think a renewal may be on the cards. You might (just) enquire of the tenant for confirmation that he will be vacating on or before the expiry of the lease, and arrange for whatever schedule of condition needs to be prepared and agreed.
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Re: Ending a commercial tenancy where LTA 1954 Part 2 exclud

Postby atticus » Fri Oct 06, 2017 6:27 am

And if the tenant does not vacate, the landlord should bring possession action.
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Re: Ending a commercial tenancy where LTA 1954 Part 2 exclud

Postby crusty » Sun Oct 08, 2017 7:02 am

Presumably, if I may be prepared to grant a new LTA Part II excluded lease, given terms acceptable to me, there is nothing to stop me entering into without prejudice negotiations? I would need to make it clear that without such a new excluded lease the tenant would have to vacate at the expiry of the existing term.
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Re: Ending a commercial tenancy where LTA 1954 Part 2 exclud

Postby theycantdothat » Sun Oct 08, 2017 12:24 pm

crusty wrote:Presumably, if I may be prepared to grant a new LTA Part II excluded lease, given terms acceptable to me, there is nothing to stop me entering into without prejudice negotiations? I would need to make it clear that without such a new excluded lease the tenant would have to vacate at the expiry of the existing term.


You need to proceed with caution. If you want to be safe rather than sorry, employ a professional to negotiate for you.
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Re: Ending a commercial tenancy where LTA 1954 Part 2 exclud

Postby dls » Tue Oct 10, 2017 12:45 pm

Crusty, please take geat care.

People have been trying to get around these laws since . . 1954. Many have failed. The courts have repeaetedly said that the legislation is there to protect tenants, and that accordingly they will discourage attempts to avoid it. This has lessened a little, but your questions suggest a desire, if you will excuse the mixed metaphor, to pull a fast one without first getting your arse in gear.

The suggestion of a further tenancy may go directly to suggest an attempt to circumvent the Act.
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Re: Ending a commercial tenancy where LTA 1954 Part 2 exclud

Postby crusty » Tue Oct 10, 2017 12:54 pm

So are you saying that you can't have LTA 1954 excluded tenancies following each other?

My options are to sell freehold to the tenant, grant new tenancy or allow the term to expire and seek possession so I can sell freehold to someone else. What I do will depend on the terms that can be negotiated.
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Re: Ending a commercial tenancy where LTA 1954 Part 2 exclud

Postby dls » Tue Oct 10, 2017 1:00 pm

So are you saying that you can't have LTA 1954 excluded tenancies following each other?


No, I am not. I am saying that a court which might just want an excuse for giving security could lookrather cosely at the circumstances and documents to double check that the tenancy is in fact and in law excluded.

Years ago, people had to go to court to achieve such an exclusion. Then it was changed so that the paries were left to get on wit it, but the result might be uncertainty.

Nobody here has seen the papers, or taken a proper history. We cannot say. We do not give advice, we can only discuss the law.

For advice you do need somebody who is qualified, insured, registered, and has all the documents and the facts.
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Re: Ending a commercial tenancy where LTA 1954 Part 2 exclud

Postby theycantdothat » Tue Oct 10, 2017 10:41 pm

Unless it is a case of letting a lock-up under the arches to someone in import/export, no one should grant or take a commercial lease without professional advice. It is particularly important if you do not want to grant a lease within the 1954 Act. The law does not go so far as to say you cannot negotiate to grant a new contracted out lease to a tenant who already has one, but you need to watch you do not do the wrong thing. Above, you use the phrase "without prejudice" which is not going to give you the protection you may think it does. Experienced commercial surveyors and lawyers know how to proceed without unintentionally committing their clients.
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