Landlord and Tenant Act 1954 - Reformed

clear practical advice

Landlord and Tenant Act 1954 - Reformed

Richard Pickersgill

Termination by tenant

• S27(2) notice amended– minimum 3 months notice to terminate at any time (not

on quarter day)– apportionment / reimbursement of rent

Requests for information

• Within last 2 years of the term• Tenant’s notice may require to know whether the

landlord is the freeholder or a mortgagee in possession and has any receiver been appointed?

• The landlord may require details of whether the tenant occupies all or part of the premises for the purpose of its business and to give details of any sub-letting


In addition• Parties required to give details of changes taking place within 6

months• Landlord must provide details of a reversionary interest in any

part of the premises• Landlord must provide information regarding Section 25 Notice

or Section 26 notices• Details of sub-letting from the tenant must include whether it is

contracted out of the Act


• As before Section 40 information must be given within a month

• Proposals also deal with transfers of interests• The duty on the recipient of a Section 40 Notice

ceases if the transferor has notified the party giving Section 40 Notice of particulars of the transferee


• The party serving the Section 40 Notice may transfer the benefit to the transferee by giving notice to the recipient or alternatively if the transferee gives such notice

• The specific right of a civil action for a claim for damages for breach of statutory duty for breach of Section 40

Landlords notice to terminate tenancy

• A Section 25 Notice may be served not less than 6 months nor more than 12 months before the date of termination specified therein

• The Notice must not expire earlier than the date when the tenancy would otherwise have come to an end

Tenants request for new tenancyunder Section 26

• The request may be made for the tenancy to begin not more than 12 nor less than 6 months after the date of the request

• The date for commencement shall not be earlier than the date on which the current tenancy would have come to an end

• The Section 26 Request must set out the tenant’s proposals

Tenants request for new tenancyunder Section 26

• Counter notice must be served by a landlord intending to oppose the application for the new tenancy

Landlords notice to terminate tenancy / tenants request

• The landlord’s notice must indicate the landlord’s proposals for the new tenancy if the landlord is not opposing the new tenancy

• The new Section 25 Notice must also contain a health warning that these are the landlord’s proposals


• Court application may now be made immediately after service of the Section 25 Notice

• If a Section 26 Request then application must not be made before 2 months have expired from the Request or earlier if counter-notice is served by Landlord

• The landlord may now apply for termination without a renewal


• Maximum time limits for a tenant’s application either:- A. Date specified in the Section 25 Notice for termination; or

B. The day before the date specified in the request for the date for commencement of the new tenancy; or

C. The parties are able to extend the deadline for applications to Court by written agreement provided it is achieved within the previous period


• No limit to the number of extensions which can be agreed and extensions extend a tenancy until the end of that extended period

Other changes regarding proceedings

• Landlord may apply to Court for termination• If landlord fails to make out the ground to terminate, a new

tenancy will be ordered without a separate application• Directions then to deal with the application for the new tenancy• Only one set of proceedings may be issued • A landlord’s proceedings may not be brought to an end either to

terminate or renew the tenancy without the consent of the tenant

Companies / controlling shareholder

• The individual and the company controlled by the individual are treated as equivalent

• A corporate tenant occupying the premises may apply where the business is being carried on by the individual controlling shareholder

• Individual controlling shareholder may apply where the business is carried on by the company controlled by the individual tenant

Companies / controlling shareholder

• Opposition may be relied upon where:– proposed occupation by the company controlled by the

individual landlord– where occupation by the controlling shareholder in the

case of a corporate landlord

• There may also be opposition if another member of the same group of companies is to occupy the premises

Members of a group of companies

• Group companies definition extended where:-– an individual has a controlling interest as opposed to companies

being subsidiaries of a third party or one is the subsidiary of another

Interim rent

Changes• The tenant may now apply• Only one party may make the application• An application may not be made more than 6 months from

the expiry date of the old tenancy• Commencement date is earliest date which could be

specified for termination / start of new tenancy in Section 25 notice or Section 26 request

Interim rent

Changes continued - assessment

Provided that the notice / request relates to the whole demised property and that the landlord does not oppose the application and the new lease is granted then:-• Interim rent will usually be the same as the rent

under the new lease

Interim rent

Changes continued – assessment

• modifications where substantial changes in the market rent from the date that it first became payable; or

• there have been changes in the terms of the lease

If above terms are not satisfied, then the previous

system generally still applies

Miscellaneous points

• Maximum length of term is 15 years and not 14• Right to compensation for misrepresentation extended

for the position where tenant induced not to apply for a new lease or withdraws a pending application by misrepresentation or concealment on the part of the landlord

Miscellaneous points

• Non-fault compensation of twice the rateable value payable only in respect of part of the premises occupied for 14 years or more with the lower single rateable value payable for part occupied for less than 14 years

clear practical advice

Landlord and Tenant Act 1954 - Reformed

Richard Pickersgill

Business

Landlord and Tenant Act 1954 - Reformed