Concurrent Lease UK

A section 25 notice is the formal notice by which a commercial landlord terminates a business tenancy protected by the Landlord and Tenant Act 1954 (LTA 1954) and either proposes terms for a new tenancy or opposes renewal on a statutory ground. Key features: served between 6 and 12 months before the proposed termination date; Form 1 (hostile — opposing renewal) or Form 2 (friendly — proposing new tenancy terms). Grounds of opposition (s.30(1)): (a) breach of repair; (b) persistent delay in rent; (c) other substantial breach; (d) alternative accommodation; (e) uneconomic sub-tenancy of whole; (f) intention to demolish or reconstruct (genuine, firm, settled intention required at date of notice and trial); (g) own occupation (14-month ownership required). Tenant's response: court application within 4 months of s.25 notice or right to new tenancy lost; deadline can be extended by written agreement under s.29B LTA 1954. Compensation (ss.37, 37A): where renewal opposed on grounds (e), (f) or (g) and landlord succeeds — rateable value; double rateable value if tenant occupied 14+ years. Interim rent (ss.24A-24D LTA 1954): either party can apply; runs from earliest possible termination date in s.25 notice. Scotland: LTA 1954 does not apply — tacit relocation governs commercial lease renewal.

An LPA receiver (Law of Property Act receiver or fixed charge receiver) is a property professional appointed by a mortgagee (lender) under LPA 1925 ss.101–109 without a court order when a borrower defaults on a mortgage. The receiver is deemed by statute to be the agent of the mortgagor (LPA 1925 s.109(2)) — meaning the lender is not liable for the receiver's acts. Statutory powers (s.109(3)): collect rents and income; grant/accept surrender of leases up to 21 years; insure; repair — usually supplemented by express contractual powers. Power arises when: mortgage is by deed; mortgage money is due; and the power is exercisable (s.103): one month's notice served; or interest is two months in arrears; or another mortgage covenant is in breach. Impact on existing tenancies: existing ASTs and tenancy agreements continue and bind the receiver; tenants redirect rent to the receiver; the receiver steps into the landlord's shoes to manage, enforce covenants, serve notices, and take possession; all statutory landlord duties (gas safety; EICR; deposit protection; Renters' Rights Act 2025) apply to the receiver. Landlord in default: loss of rent (all rents belong to the receiver from appointment); loss of management control; no automatic possession (receiver must take possession proceedings for vacant possession); sale by receiver under power of sale in mortgage deed; duty of care to obtain proper market value (Silven Properties v Royal Bank of Scotland [2003] CA). Corporate borrowers: registration at Companies House within 7 days required (Companies Act 2006 s.859A); agency terminates on winding-up or administration. MCOB compliance: regulated lenders must follow FCA MCOB 13 before enforcement.

Underleases (sub-leases): obtaining consent to underlet (LTA 1988), the fundamental rule that the underlease cannot exceed the head lease, intermediate landlord obligations, LTA 1954 security of tenure for commercial undertenants (including the s.65 risk), forfeiture of the head lease, and the intermediate landlord's trapped position.