Relief for landlords as the Court of Appeal confirms that leases have been validly contracted out
One of the requirements for tenants to contract out of the security of tenure regime contained in the Landlord and Tenant Act 1954 is that they make a simple or statutory declaration before entering into the lease.
One of the requirements for tenants to contract out of the security of tenure regime contained in the Landlord and Tenant Act 1954 is that they make a simple or statutory declaration before entering into the lease (or prior to an agreement for lease). That declaration has to be in the form, or substantially in the form, prescribed by the legislation.
The prescribed form of declaration requires the tenant to insert a date when the lease term will commence and makes no allowance for the fact that, more often than not, that date will be unknown when the declaration is made. To get around this, tenants will often resort to wording similar to that used in a recent case. The case concerned six leases in designer retail outlet centres where the declarations identified the start of the lease terms in three different ways - an access date determined under an earlier agreement for lease, a date to be agreed between the parties or the date when the tenancy is granted.
The Court of Appeal has approved the wording used in all six declarations (meaning that the leases had therefore been validly contracted out).
Landlords will breathe a huge sigh of relief after this decision. Had it gone the other way, it would have made it very difficult (if not impossible) to contract out a lease where the term commencement date was not known in advance. In addition, it would potentially have invalidated the contracting out process used in the past, opening the floodgates to tenants claiming security of tenure at the end of their leases.
Contact
David Harris
Professional Development Lawyer
david.harris@brownejacobson.com
+44 (0)115 934 2019
Related expertise
You may be interested in...
Legal Update
ASA bans “misleading” Huel and ZOE ads endorsed by Dragon’s Den Star
Opinion
Choose your words wisely: Balancing inclusivity and employees’ beliefs at work
Guide
Guidance for manufacturers of EVs and HEVs in the UK: ASA's non-exhaustive electric vehicle advertising guidance
Legal Update
(Deep)fake it till you make it? The ASA's role in regulating false celebrity endorsements
Press Release
Browne Jacobson strengthens Irish Corporate team with appointment of Principal Associate James Byrne
Legal Update
The benefits of good governance in sport
Press Release
Browne Jacobson to lead discussions on the future of real estate and infrastructure at this year’s UKREiiF 2024 event
Press Release
Browne Jacobson acquires business of real estate practitioner Paul Taylor Solicitors
Legal Update
The Baltimore bridge collapse: One of the biggest losses in maritime insurance history?
Legal Update
Understanding the ICO's new fining guidance
Legal Update
Unravelling the challenges and opportunities in UK sports governance
Legal Update
ASA ruling on Calvin Klein FKA Twigs advertisement
Press Release
Browne Jacobson successful for National Lottery in Court of Appeal
Opinion
Caregivers at work: Navigating new carer's leave regulations
Opinion
EHRC publishes new guidance on menopause and the workplace
Opinion
BBC personality wins appeal on IR35 status
Legal Update
Covid BI litigation (Autumn 2023): Insurance coverage disputes update
Legal Update
COP28 - how to limit and prepare for future climate change
Press Release
Browne Jacobson advise Maven Equity Finance on investment in Traverse Associates
Press Release
Three strong restructuring and insolvency team join Browne Jacobson
Podcast
The real estate podcast: How AI and tech is changing real estate
Legal Update
How to negotiate better ‘green’ provisions in your leases
Opinion
The Metaverse's influence on real estate: Implications for commercial retail clients and law firms
Guide
How to manage retail sector supply contracts and avoid disputes
Legal Update
Utilising prime retail sites to improve the health of our nation
Legal Update
A new era of opportunity for high street regeneration?
Opinion
Practical points from High Court ruling that Tesco has infringed Lidl’s IP rights in its famous yellow circle logo
Press Release
Corporate dealmakers advise Sodexo Live! on its move to 100% stake in global sports, travel and hospitality provider STH
Legal Update
Pitfalls for retailers to avoid when offering access to ‘buy now, pay later’ products
Press Release
Browne Jacobson’s Manchester dealmakers advise Spatial Global on its acquisition of Heathrow based freight specialist Hollyport Logistics
Opinion
Supreme court rules on retail tenant's service charge bill
Published Article - Consumer Duty
Consumer duty part 3 - 'The drill-down' into the 'cross-cutting' rules
On-Demand
The UK's green agenda - the outcomes of COP27 and actions since COP26
Press Release
Browne Jacobson’s retail lawyers advise Wilko on its strategic £48m sale and leaseback of Nottinghamshire distribution centre to DHL
Press Release
Suzanne Harlow joins Browne Jacobson as Non-Executive Director
Law firm Browne Jacobson is pleased to announce that Suzanne Harlow has been appointed Non-Executive Director of its Retail, Consumer & Logistics sector.
Legal Update
Fashion retailers: Is this the end for free returns?
Published Article
AI generated designs on retail products
Every AI will have its own terms of use. DALL·E 2’s Terms of Use dated 3 November 2022 specify that as between a user and Open AI, a user owns their prompts and uploads. Open AI also assigns to the user all rights in any images generated by DALL·E 2 for that user (subject to the user complying with those Terms of Use, and to a licence to use inputs and output to develop and improve the services).
Published Article - Consumer Duty
Consumer duty part 2 - 'The drill-down' into the 'cross-cutting' rules
Published Article
Luxury brands and sustainability: The challenges and solutions
Legal Update
The Retained EU Law
Created at the end of the Brexit transition period, Retained EU Law is a category of domestic law that consists of EU-derived legislation retained in our domestic legal framework by the European Union (Withdrawal) Act 2018. This was never intended to be a permanent arrangement as parliament promised to deal with retained EU law through the Retained EU Law (Revocation and Reform) Bill (the “Bill”).