A business tenancy does not come to an end unless it is terminated in accordance with the provisions of the Landlord and Tenant Act 1954 (LTA 1954). The tenant or the landlord can apply to the Court for an Order. The landlord can give notice under Section 25 of the LTA 1954 or the tenant can make a request for a new tenancy under Section 26 of the LTA 1954.
There are time periods to be complied with in relation to the service of such notices and they are strictly applied. A landlord can oppose the grant of a new tenancy if they can show that they intend to 'demolish or reconstruct the premises or a substantial part of them'. The landlord must show a fixed settled desire to do such work and demonstrate a reasonable prospect of being able to bring about the desired result.
In a recent case, it was held that the landlord need only prove his intention to demolish and reconstruct the property at the Court Hearing and not at the time of service of the notice.
This case does not establish any new law but is an important reminder to business landlords and tenants that the service of the notices and the content of them must be technically correct, otherwise the landlord or the tenant's application may fail. This can have far reaching consequences for a landlord who wants to regain possession of his premises but is forced into granting a new tenancy due to inaccuracies in the documentation.
To ensure that you are properly advised in this area, contact us.