LTA 1954 renewal procedures
The landlord’s notice is called a section 25 notice. This may be served not later than 6 months but not more than 12 months before the specified date in the notice, which must be the end date of the lease or a date after that. In the case of a periodic tenancy, the notice can be served at any date on or after the end of a period when the lease might end (which means in practice that difficulties would only arise in the case of yearly tenancies).
- The landlord is entitled to object to a new tenancy on a number of statutory grounds. The most frequently used grounds are: the landlord has a firm intention to demolish or reconstruct the premises at the end of the tenancy and cannot do so without obtaining possession from the tenant; or the landlord intends to occupy the premises for his own business purposes on termination.. If the landlord indicates that it will oppose the grant of a new lease on these statutory grounds, or successfully opposes the grant of a new lease, the tenant is entitled to statutory compensation based on the rateable value of the property.
- Other grounds include: the tenant’s failure to repair the premises; the tenant’s persistent delay in paying rent; the tenant being in substantial breach of other obligations; or that the landlord has offered alternative accommodation. Successful objection by the landlord on these “bad tenant” grounds does not entitle the tenant to compensation.
- If the landlord and the tenant cannot agree the terms of the new lease, then either party can apply to the court to determine the terms of the new lease. But basically, a tenant is entitled to a new lease of up to 15 years duration, on more or less the same terms as the existing lease at a market rent.
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Mr A B Smith