Beware of Section 25 Notices
This article is solely prepared on the basis that the Landlord and Tenant have not agreed, at the time of entering into a Lease, that Sections 24-28 of the Landlord and Tenant Act 1954 (“the Act”) will be excluded.
How can a Landlord bring a commercial lease to an end?
The Landlord MUST serve a Section 25 Notice. The Landlord can oppose a renewal of the lease if any of the following Grounds are applicable:
- Ground A – Breach of repair covenant;
- Ground B – Persistent delay in paying rent;
- Ground C – Breaches of other obligations;
- Ground D – Availability of alternative accommodation;
- Ground E – where a sub-tenant – Possession required for letting or disposing of whole property;
- Ground F – Landlord intends to demolish or reconstruct; or
- Ground G – Landlord intends to occupy the premises himself.
If none of the above are relevant, then a Section 25 Notice must be served by the Landlord to propose new terms or a Section 26 Notice by the Tenant.
What happens if no Notice is served?
If no Notice is served by either the Landlord or Tenant, at the end of the contractual term specified in the existing Lease, then the lease will be held over and continue to run, as before until such time that the Landlord or Tenant take steps to bring the tenancy to an end or seeks new terms.
The last thing I would say is that always seek legal advice regarding any legal Notice, failure to deal with either a Section 25 or 26 Notice correctly can be have disastrous implications for either party.