Tenant protection

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Discussion

NDA

Original Poster:

21,572 posts

225 months

Monday 26th June 2017
quotequote all
A pal of mine has run an artists studio business for 20 years - renting the studio. For some reason no formal contract exists and he was wondering what protection he might have, despite the lack of contract.

I have no knowledge of the law in this area but would assume there are some inalienable 'rights' for a tenant of such a long period?

He is invoiced quarterly for his rent and has always paid on the button.

There's no reason to suspect any change of this arrangement, but it would be useful to know if there is any legal protection against being hoofed out or the rental being increased dramatically.

NDA

Original Poster:

21,572 posts

225 months

Tuesday 27th June 2017
quotequote all
Apologies for the bump - assume someone here will have an idea smile

Norfolkaston

84 posts

215 months

Tuesday 27th June 2017
quotequote all
On the basis that he occupies the property for a business use, and he has exclusive occupation, it sounds like he has a periodic business tenancy protected by Part II of the Landlord and Tenant Act 1954.

If the landlord tries to end the tenancy, he must serve a specific notice under the 1954 Act (S25 notice) which must be for a minimum of 6 months and maximum of 12 months. Your friend has a statutory right to a new lease at a market rent at the end of this notice period. There is a specific procedure (and very strict time limits) to be followed if he wants a new lease (which can involve court proceedings) so he should consult a solicitor.

The landlord can defeat his right to a new lease in certain circumstances such as the landlord wanting to re-develop, wanting to occupy the premises himself, tenant not paying rent or persistently breaching covenants etc.

If the tenant wants to prompt all of this (and get certainty with a new written lease) he can serve his own notice (S26 notice) to kick start the renewal process.

However, if the landlord isn't doing anything to prompt a new lease, he might be better not to do anything as activating this procedure could result in a higher rent.

NDA

Original Poster:

21,572 posts

225 months

Tuesday 27th June 2017
quotequote all
Thank you very much - much appreciated.