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LANDLORD AND TENANT ACT 1954: FREQUENTLY ASKED QUESTIONS
When does the Act apply to a
tenancy?
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| When does the Act not apply to a tenancy? |
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| How can a tenancy protected by the 1954
Act be brought to an end? |
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| What is the tenant's next step
if a section 25 notice is served by the landlord? |
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What is the counter-notice procedure if
a section 26 request is served by the tenant?
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| What is the deadline for action after the
service of a section 25 notice or section 26 request and
any counter-notice? |
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| Can the deadline for the Court application
be extended? |
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| Who can apply for an interim rent? |
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| What is the deadline for applying for an
interim rent? |
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| From what date is the interim rent payable? |
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| How is the level of interim rent assessed? |
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When does the Act apply to a tenancy?
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There must be a tenancy, i.e. the Act does
not apply to licences. |
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The tenant or a group company
of the tenant must be in occupation of the premises. |
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The occupation must be for the purposes
of the tenant's business. |
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The tenancy must not be specifically excluded
from the application of the Act (see below). |
When does the Act not apply to a tenancy?
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If the parties have properly excluded the
Act. (See Excluding the 1954 Act). |
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If the term granted is 6 months or less,
unless the lease provides for the renewal or extension
of the term or the tenant's total period of occupation
(taking into account any previous occupation by the tenant
or its predecessor in the same business) exceeds 12 months. |
| • |
If the grant and continuation of the tenancy
is connected with the tenant's employment. |
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If the tenancy falls within certain categories
of agricultural tenancy. |
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If the tenancy was created by a mining
lease. |
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If the premises are licensed for the sale
of intoxicating liquor on the premises, subject to certain
exceptions. |
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If the tenancy arises out of the lease of
a flat granted under section 56 of the Leasehold Reform,
Housing and Urban Development Act 1993. |
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If the tenancy relates to certain premises
covered by the Dockyard Services Act 1986, the Atomic
Weapons Establishment Act 1991, the Armed Forces Act 1996,
the Channel Tunnel Act 1987, the Immigration and Asylum
Act 1999 and the Railways Act 1993. |
How can a tenancy protected by the 1954 Act be brought
to an end?
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The landlord serves notice under section
25 of the Act, either offering or refusing to grant a
new tenancy. The termination date for the tenancy specified
in the section 25 notice must be a date not less than
6 months nor more than 12 months after the notice is served.
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The tenant serves a request for a new tenancy
under section 26 of the Act, to start from a date not
less than 6 months nor more than 12 months after the making
of the request. |
| • |
The tenant gives 3 months' notice of its
intention to vacate the premises under section 27 of the
Act. |
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The tenant vacates the premises on or before
the lease termination date. |
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The lease is surrendered or
forfeited. |
The termination/start date specified in a section 25 notice/section
26 request respectively must not terminate the existing tenancy
before the expiry date stated in the lease, but it can terminate
the tenancy on any date after that provided that the date
falls 6-12 months after the date of service of the notice/request.
A section 27 notice cannot terminate the tenancy any earlier
than the termination date specified in the lease, but it can
be served after that date.
What is the next step for a tenant if a section 25 notice
is served by the landlord?
A tenant no longer needs to serve any counter-notice to
the landlord's notice to inform the landlord of its intentions
concerning the premises. However, depending on the circumstances,
it is often helpful to discuss the position with the landlord
and, if appropriate, start negotiations for the new lease.
What is the counter-notice procedure if a section 26 request
is served by the tenant?
There is no need for the landlord to serve a counter-notice
if it is willing to grant a new lease to the tenant, although
it may be helpful to contact the tenant to start negotiations
for the new lease.
However, if the landlord is opposed to the grant of new
tenancy, it must serve a counter-notice on the tenant
within two months of the service of the section 26 request.
The counter-notice must state the ground(s) on which a new
tenancy will be opposed by the landlord.
What is the deadline for action after the service of a
section 25 notice or section 26 request and any counter-notice?
Both landlords and tenants can make an application to Court
in relation to the tenancy. The tenant can apply for the grant
of a new tenancy. The landlord can either apply for the terms
of the new tenancy to be determined, or for the termination
of the current tenancy if it has opposed the grant of a new
tenancy. There are rules to prevent dual applications proceeding.
Where a section 26 request is served, neither party can make
an application to court until 2 months after the service of
the request unless the landlord serves a counter-notice. If
a counter-notice is served, the application can then be made
at any time up until the expiry of the statutory period (see
below).
The parties are not entitled to make any application to the
Court after the expiry of "the statutory period".
The tenancy will come to an end if no court application is
made before the end of the statutory period.
"The statutory period"
- Section 25 notice: the statutory period ends on
the termination date for the tenancy specified in
the notice.
- Section 26 request: the statutory period ends on
the date immediately before the date specified in
the request as the date for the start of the new tenancy.
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Can the deadline for the Court application be extended?
The deadline for the Court application can be extended by
agreement between the parties, provided that the agreement
is made before the statutory period would otherwise expire
Further extensions of the statutory period can also be made
by agreement between the parties, so as to facilitate progress
of negotiations, provided that such agreements are reached
before the end of the relevant existing extended period.
Who can apply for an interim rent?
Once a section 25 notice or section 26 request has been served,
either the landlord or tenant can apply to the court for an
interim rent to be determined, which is the rent payable from
"the appropriate date" see below
until the start of the new lease.
What is the deadline for applying for an interim rent?
The application for an interim rent must be made not later
than 6 months after the date for the termination of the tenancy
as specified in the relevant notice. However, if the parties
agree to extend the deadline for the substantive Court application
(either for a new tenancy or for the termination of the tenancy),
the deadline for the interim rent application will be similarly
extended until 6 months after the revised deadline for the
substantive Court application. If the substantive Court application
is made, section 64 of the 1954 Act operates to extend the
termination of the tenancy until 3 months and 2 weeks after
the application is finally disposed of.
From what date is the interim rent payable?
Interim rent is payable from "the appropriate date".
"The appropriate date"
- Section 25 notice: the earliest termination date
that could have been specified in the notice.
- Section 26 request: the earliest date that could
have been specified in the tenant's request as the
date on which the new tenancy is to commence.
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As a result, even if a tenant serves a section 26 request
which asks for the new tenancy to start in 12 months' time,
the interim rent may nevertheless be payable from an earlier
date.
How is the level of interim rent assessed?
The interim rent will normally be the same as the rent payable
under the new tenancy if:
| (a) |
the landlord has served a section
25 notice or has not served a counter-notice to the tenant's
section 26 request; |
| (b) |
the tenant was in occupation of the whole
of the premises comprised in the tenancy for the purposes
of a business being carried on by him or her; and |
| (c) |
the landlord grants a new tenancy either
as a result of successful negotiations or following an
order of the court. |
Where the landlord or the tenant can show that the market
has changed since "the appropriate date" (see
above), so that the interim rent which would normally
apply is substantially different from the rent determined
in respect of the new tenancy, an adjusted open market rent
can be fixed as the interim rent.
A "cushioned" interim rent is still possible in
cases where the landlord has opposed the grant of a new tenancy.
The amount of the rent payable is that which it is reasonable
for the tenant to pay during the on the assumption that the
tenancy is one from year to year.
For further information or advice please contact propertylitigation@charlesrussell.co.uk
These notes represent only an outline summary
of relevant principles and detailed advice should always be
sought in particular cases.
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