Making sure you have a "Protected Lease" on your business premises

Clients setting up in business and entering into new leases for their premises should always try an ensure their Landlord does not seek to exclude the protection afforded by the 1954 Landlord and Tenant Act (“the 1954 Act”).

The 1954 Act is a significant piece of legislation that primarily governs the relationship between Landlords and Tenants of commercial properties. 

The purpose of the 1954 Act is to protect Tenants of business premises by giving them the right to renew their lease when it expires. It also outlines procedures for ending or renewing a lease and sets rules for how disputes are handled.

Very often a Landlord will seek to include a clause in the lease (that the Tenant has to formally acknowledge) whereby certain sections of the 1954 Act (sections 24 to 28) are specifically excluded from their lease. This means that at the end of the Lease term the Landlord has complete control over whether the Tenant can have a new lease. For a Tenant starting out in business, this could mean that they would need to vacate the leased premises and find new one, not helpful when running a business.

1. Security of Tenure:  Right to Renew: Tenants have the right to ask for a new lease when the current one ends. The Landlord can only refuse in specific circumstances, such as needing the property for personal use or if the tenant has breached lease terms.
2. Notice Requirements: Both Landlords and Tenants must follow specific notice periods and formats when ending or renewing a lease. For example, a Landlord must give at least six months’ notice if they do not wish to renew the lease.

Thomas Flavell and Sons can provide advice and representation to prospective tenants when entering into a new Lease. Please contact a member of our Commercial Property team.