Your Business Tenancy
Gus Cook, Partner, says: -
We deal with business tenancies week in, week out and it is rare for the law to change in such a fundamental way. The new rules mean that where the tenant is an individual, occupation by a company in which he has a controlling interest will give protection under land lord and tenant law. This improves your rights. If a company holds a lease, occupation by a person with a controlling interest will similarly provide protection. There are also some changes to procedure. Until 1st June a landlord was not required to set out his proposals for a new tenancy until after the tenant had applied to the court for a new tenancy. From 1st June the landlord’s notice stating that he is not opposed to the grant of a new tenancy will be the same as the tenant’s request – a new section in the Act requires the landlord’s notice to set out proposals as to:
- the property to be comprised in the new tenancy (i.e. being either the whole or part of the property in the old tenancy);
- the rent to be payable, and;
- the other terms of the new tenancy.
This will require valuation evidence and we can advise on how to obtain valuations.
The changes also mean that there is a presumption in favour of a new tenancy so tenants may find it easier to get their lease renewed. Local landlords however may not
Notes
1. The changes are intended to simplify the operation of the Act, and to a large extent they are procedural rather than substantive.
2. Changes were made in the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 (SI 2003/3096), which amends the Landlord and Tenant Act 1954, Part II. For further information or for advice on your business tenancy arrangements.
Gus Cook
Tel: 01202 446560
Email: civil_litigation@aldridge-brownlee.co.uk
