Olawill helped a charity client determine if they still had the right to remain on a property months after their commercial lease had expired. This case highlighted how outdated aspects of the main UK governing legislation – the Landlord and Tenant Act 1954 – can create confusion and imbalance in landlord-tenant negotiations.
The Act gives tenants automatic rights to renew leases to provide business stability. But it is riddled with complexities making compliance burdensome. As a result, many leases now opt out completely, leaving tenants unprotected.
In the client’s case, careful review of their expired lease revealed contracting out clauses and a statutory declaration. The landlord had also stopped demanding rent!. This meant the charity no longer had legal occupancy rights despite having already occupied the premises for months after lease expiry. We advised them on the urgency of securing a new Tenancy at Will agreement to remain on the property, so a new lease can be negotiated with the landlord.
Situations like this showcase how current legislation falls short. The Act’s drawn-out procedures, opacity, and misalignment with modern commercial practices often lead parties to circumvent it altogether. What was originally meant to defend tenants can ironically leave them high and dry.
Fortunately, government reform efforts aim to modernize the Act and make it truly usable and beneficial again for all sides. The committee’s stated goals include:
– Simplifying the law
– Updating for contemporary market dynamics
– Supporting wider priorities like sustainability
– Fostering productive landlord/tenant relations that encourage investment
The 2024 public consultation will be pivotal for proposing impactful changes. As professionals in this sector, we must provide input to ensure reforms meet the needs of 21st century real estate. I would like to hear different perspectives on how to improve commercial lease laws. Please share your thoughts!
Book a free consultation today with www.olawill.co.uk
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