re - commercial lease section 24-28 LTA 95 excluded

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  • re - commercial lease section 24-28 LTA 95 excluded

    I am in the process of negotiating a commercial lease. One aspect of the draft lease is a clause excluding the agreement from any of the provisions of 24-28 of the Landlord & Tenant Act 1995.

    Can anybody give me an indication why they have done this and would this action stand up in court?

    Many thanks

    Scribbler

  • #2
    It would remove business tenancy protection. Effectively, expiry of the lease would leave T with no right to remain [cf a common-law residential letting outside the Housing Act 1988]. L may not want T to have any security.

    Yes, it's a perfectly valid procedure. Yes, it would stand up in court. As to both, however, L has to serve T with a preliminary warning Notice [cf ground 1 in Schedule 2 to the 1988 Act]. If this is a renewal and such exclusion did not appear in the old lease, T should resist its appearance in the new lease.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

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    • #3
      Originally posted by scribbler View Post
      I am in the process of negotiating a commercial lease.
      Are you L, or T, or representing one of them (which)?
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

      Comment


      • #4
        It is the method by which the landlord excludes the tenants rights to continue occupancy past the minimum lease term. Yes it is perfectly legal if done properly, and usually the landlord will seek a specific seperate signed acknowledgement from the tenant that they understand this.

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        • #5
          Originally posted by scribbler View Post
          I am in the process of negotiating a commercial lease. One aspect of the draft lease is a clause excluding the agreement from any of the provisions of 24-28 of the Landlord & Tenant Act 1995.**
          ** No, you mean 1954.
          It's not possible to exclude s.24-28 of the Landlord and Tenant (Covenants) Act 1995.
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).

          Comment


          • #6
            Thanks for your responses. We would be the Tenant. The lease refers to the Landlord & Tenant Act 1995. Would that mean the clause would be unenforceable?

            Scribbler

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            • #7
              Originally posted by scribbler View Post
              Thanks for your responses. We would be the Tenant. The lease refers to the Landlord & Tenant Act 1995. Would that mean the clause would be unenforceable?
              No, but it's clearly wrong. As yet, the lease does not exist anyway. What matters is the pre-lease Notice excluding s.24-28 of LTA 1954, with a simple or Statutory Declaration. Be guided by your solicitor on this.
              JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
              1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
              2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
              3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
              4. *- Contact info: click on my name (blue-highlight link).

              Comment

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