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Business tenants
Do you know your rights
If you are a tenant of premises that you use for the purposes of a business you are, under the Landlord and Tenant Act 1954, entitled to a new tenancy at the end of your current tenancy unless your landlord can establish one of a few specific grounds of opposition which can be found at section 30(1) of the Act, or unless the tenancy agreement was specifically excluded from protection under the Act before it was entered into.
The premises do not have to be buildings – tenancies of open land may also be covered. Neither do you actually have to carry on your business in the premises themselves. The tenancy could still be protected if the premises are used for purposes related to your business, such as an office car park or a store for goods or equipment. For the purposes of the Act, “business” is defined as including any “trade, profession or employment” which simply reflects its common meaning.
Some tenancies of agricultural land are excluded from protection, as are tenancies for fixed terms of less than six months, although where successive short-term tenancies have been granted for an overall period in excess of twelve months, they will become protected.
If you have a business tenancy protected by the Act you have what is known as “security of tenure”. This means that your tenancy cannot be terminated, irrespective of any end date specified in your tenancy agreement and even if that date has passed, without either you or your landlord serving at least six months’ notice in accordance with the Act. Once such a notice is served you have the right to a new tenancy, unless your landlord can satisfy one of the grounds of opposition. If it is not possible for you and your landlord to agree the terms of the new tenancy you will need to make an application to the court. There are strict time limits for making such an application and you should seek advice at an early stage. Even if your landlord can successfully oppose your application, you may be entitled to compensation on vacating the premises.
So, if you are a tenant of premises that you use for the purposes of your business and your tenancy is coming to an end, or your landlord is seeking to terminate it, now would be an appropriate time to obtain advice on your rights as a business tenant.
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