How can tenants and landlords navigate lease renewal and the impact of the Landlord and Tenant Act 1954?

Often what the lease says about the contractual term isn’t always the be all and end all. It will be if the Landlord and Tenant Act 1954 (54 Act) is excluded in relation to the lease. If it isn’t excluded, the 54 Act gives the tenant protection from eviction and the right to a renewal lease, subject to adhering to the 54 Act’s prescribed procedures.

If the Landlord wants to end the lease, they must give at least six but not more than twelve months’ notice to the tenant of their intention to end the lease. However, they must also inform the tenant that they have the right to a new lease. The landlord must also state whether or not they oppose renewal. If they do oppose renewal, they can only rely on one or more of the following grounds:

A) The premises are in disrepair

B) Persistent arrears of rent

C) There is a substantial breach of the tenant’s obligations other than repair or paying rent.

D) The landlord has offered and is willing to provide suitable alternative accommodation

E) If the tenancy was a subletting of part, the landlord requires the whole of the property for a subsequent letting.

F) The landlord intends to demolish or reconstruct the premises.

G) Landlord intends to occupy the holding

This procedure does not apply to a legitimately “contracted out” lease. To contract out so the 54 Act doesn’t apply, the following steps must be made:

– Notice served by the landlord on the tenant before entering into the lease;

– The tenant must sign a declaration agreeing to the Act being contracted out;

– A provision must be inserted into the lease declaring that this procedure has been carried out.

A potential pitfall for landlords however, is that if they fail to end the tenancy in accordance with the lease, and continue to accept rent from the tenant whilst he remains in occupation beyond the lease expiry date, the 54 Act will apply again, and the tenant will have the protections under the Act described above.

Landlords must ensure that they properly review their leases and make sure that they take to correct steps to renew any 54 Act excluded leases. They must do this before the existing term ends. Alternatively, they should serve the correct notice on their tenants if they want to bring a lease protected by the 54 Act to an end.

Landlords should also be wary that just because a lease is contracted out of the 54 Act does not mean that the tenant cannot regain the right to a new tenancy after the end of the term.

For further information, please contact us.

WBW Solicitors has offices in Axminster, Bovey Tracey, Brixham, Chard, Exeter, Exmouth, Honiton, Launceston, Newton Abbot, Paignton, Seaton, Sidmouth, and Torquay.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.