A commercial property lawyer has warned landlords about taking back possession from a tenant with a protected lease \u2013 and urged them to seek legal advice to avoid breaking the law.<\/p>\n
The Landlord and Tenant Act 1954 was introduced after the Second World War to redress the relationship balance between landlords and tenants in commercial premises.<\/p>\n
However, Phil Hunt, a senior associate in the commercial property team at Midlands law firm mfg Solicitors, said: \u201cMany now believe the pendulum has swung too far in favour of tenants and landlords can find it difficult to remove protected tenants.<\/p>\n
\u201cThere have been calls to review this 1950s piece of legislation, with some arguing that it no longer reflects the modern market.\u201d<\/p>\n
The Law Commission concluded a consultation into the Act earlier this year and is now considering the responses it has received.<\/p>\n<\/p>\n
Four models are being considered. The first would see the Act effectively abolished, leaving tenants with no security of tenure, while the second option involves both parties \u201copting in\u201d to a tenure agreement. The third option of a \u201ccontracting out\u201d regime would retain the status quo and give tenants security of tenure by default, while the fourth option would make security of tenure mandatory, offering the highest form of tenant protection.<\/p>\n
Hunt added: \u201cThe other major issue being considered is the type of tenancies which should be covered by the Act. The Law Commission has been looking at whether certain tenancies should be excluded depending on the use of the property, the duration of the tenancy, the size of the property, the location, or the rent payable.<\/p>\n
\u201cFor now, it still remains the case that landlords who intend to redevelop or regain possession of their property at the end of a lease term should take legal advice as early as possible. Discussing your next step before you serve a notice can assist in understanding the options.<\/p>\n
\u201cEqually, landlords looking to let a commercial property should consider the consequences of whether or not a lease excludes the right to security of tenure. This is often a key negotiation point in heads of terms, and discussing future plans with a solicitor before finalising heads of terms could assist in avoiding potential issues later on.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
A commercial property lawyer has warned landlords about taking back possession from a tenant with a protected lease \u2013 and urged them to seek legal advice to avoid breaking the law. The Landlord and Tenant Act 1954 was introduced after the Second World War to redress the relationship balance between landlords and tenants in commercial […]<\/p>\n","protected":false},"author":1,"featured_media":291,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n