Which Tenancies Have LTA 1954 Protection?
Applies to tenancies (not licences) of business premises not validly contracted out under s.38A. Statutory continuation (s.24) on expiry of contractual term. Excludes: agricultural tenancies, service tenancies, fixed terms of 6 months or less (unless 12+ months aggregate occupation or option to renew).
The s.25 Notice — Landlord's Termination Notice
Minimum 6 months, maximum 12 months from service to termination date. Must use prescribed form (SI 2004/1005). Must state whether landlord is willing to grant new tenancy (with proposed terms) or opposing (stating s.30 ground). Tenant must apply to court for new tenancy before the termination date specified in the notice.
Grounds for Opposing Renewal — s.30 LTA 1954
Fault grounds (a)-(c): breach of repair, persistent arrears, other substantial breaches — no compensation. No-fault grounds: (d) alternative accommodation; (e) economic subletting; (f) demolition/reconstruction — must prove genuine firm intention; (g) own occupation — 5-year bar on recently purchased reversions. Compensation (e/f/g): rateable value × 1 (or × 2 for 14+ years' occupation).
Unopposed Renewal — Terms and Interim Rent
Court sets rent, term (up to 15 years), and conditions at open market rates. Interim rent available from date of s.25 notice — use where market rents have risen. Consider agreed surrender premium where landlord wants possession but cannot prove a s.30 ground. Contract out renewal lease under s.38A to avoid future security of tenure.