Section 25

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    Section 25

    Naomi music 04-07-2019, 09:56 AM
    Hello everyone I am a new to this site and hope that I can receive some help regarding the current situation we find ourselves in. So, we have been served with a section 25 after being a tenant for 20 years. We run an community educational facility with a small team of dedicated tutors. Music, Maths,English,Science etc. Our legal advice has not been very good using initially a supposed “specialist” in 3rd sector organisations, we used to attend the workshops of quite a famous organisation regarding, of all things, lease renewal etc. This particular solicitor used to provide advice at said workshops☹️ However we are where we are. How do we apply to court to “set aside” or challenge the opposing of a new lease ? Our lease provided us with LTA 1954. Or is that avenue closed to us now?

    We are still negotiating with the landlords, it’s just finalising terns etc. However we are obviously aware of the section 25 coming into force by August the 12th and want to make sure “if” things do take a little longer than August 12th then we would like to be protected until the new lease has been agreed upon. Ultimately we want to stay and there has been quite a bit of community campaigning to get us to this point. Any help / advice from the many sages that are on this wonderful forum would be greatly appreciated. Many thank you’s in advance.

    Naomi

    #2
    I am wondering have I posted the above issue in the correct section of the forum ?? If not please let me know where this issue should be posted. As time is not on our side to make sure we get the necessary paper work signed sealed delivered i couldn’t resist the musical link 😊

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      #3
      Regardless of any negotiations with the landlord for the renewal lease, if the tenant does not protect its renewal rights before the end date in the s25 notice then it would have no legal right to remain in occupation of the premises after that end date.

      There are two ways to protect the renewal right. (1) Either apply to the court or (2) before the end date in the s25 notice - usually a couple of weeks beforehand to allow for documentation (a simple letter) you (the tenant) should contact the landlord and request agreement to an extension to the end date in the s25 notice.

      ---

      For (2) the legislation is in LTA54 s29B which is an amendment of the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003. s29B reads:

      29B.—(1) After the landlord has given a notice under section 25 of this Act, or the tenant has made a request under section 26 of this Act, but before the end of the statutory period ,the landlord and tenant may agree that an application such as is mentioned in section 29A(1) of this Act, may be made before the end of a period specified in the agreement which will expire after the end of the statutory period.

      (2) The landlord and tenant may from time to time by agreement further extend the period for making such an application, but any such agreement must be made before the end of the period specified in the current agreement.

      (3) Where an agreement is made under this section, the court may entertain an application such as is mentioned in section 29A(1) of this Act if it is made before the end of the period specified in the agreement.

      (4) Where an agreement is made under this section, or two or more agreements are made under this section, the landlord’s notice under section 25 of this Act or tenant’s request under section 26 of this Act shall be treated as terminating the tenancy at the end of the period specified in the agreement or, as the case may be, at the end of the period specified in the last of those agreements.”.

      ---

      The usual period of extension is 3 months but the period is for the landlord to decide. Also, please note that the landlord does not have to agree to any extension and cannot be criticised for refusing.

      Although s29B does not specify formalities in respect of any such agreement, the parties will normally effect an agreement in writing. In the absence of formalities, an oral agreement will suffice, although a written agreement is to be preferred. An oral agreement is best reached between the parties lawyers, otherwise in the event of dispute there is a risk of one party's word against the other''s. (In all the years i have dealt with s29B extensions I have never attempted an oral agreement: In writing and unequivocal is best.

      Making the request and agreeing the wording of the agreement is best done by a experienced commercial property lawyer or an experienced commercial property surveyor well-versed in the procedure. (I am not interested in becoming further involved.)


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