F106LAW Business Tennancies

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LTA 1954 PART 2

Who to advise; look at the persons point of view and focus attention on that and remember arguements against them.

Assess whether there is a business tenancy using definition of business tenancy.

what is the issue

  • Landlord refusal to renew? does he have the grounds under s.30?
  • Tenant wanting to renew? what are his rights?
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LTA 1954 PART 2

A business tenancy is 'any tenancy where the property comprised in the tenancy is or includes premises which are occupied by the tenant and are so occupied for the purpose of a business carried on by him or for those or other purposes.

A tenancy can only be in form of a lease

Premises: building or part of or land Bracey v. Read race horse gallops

Purpose of business: with mixed use; business use is required to be of significant not incidental as with Royal Life Savings v. Page

Occupation can be via agent Wandsworth v. Singh by weekly visits of sub contractor for maintenance and can be seasonal Teasdale v. Walker

in contrast Graysim v. PO Holding not in occupation although all sub tenants would be

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LTA 1954 part 2

s.23(2) business use - employment, trade, or profession undertaken by an individual or body of persons corperate or unincorperated. Profits need not be made Hawkesbrook Leisure

If a tenant is carrying out a trade/profession/employment it does not matter that he is an individual - if it does not fit into this catagorisation then the activity must be carried out by a body of persons.

Abernethie v. Klienmann as an individual would not qualify as a trade; as an activity pursuit it would have had to be a carried out by a body of persons

Addiscombe Gardens v. Crabbe the activity was carried out by a body of persons

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LTA 1954 part 2

Business tenancies automatically continue on the same terms

Right of the tenant to continuity


limit circumstances where contiuation can be refused

right to be offered a new lease

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LTA 1954 PART 2

Landlord s.30 grounds for termination of a lease

a. Repairs Lyons v Central commercial Property ignored repairing obligation

b. Rent Rawasdeh v Lane persistently late and default of rent payments

c. Breaches of other covenant Turner v. Searle breach of planning legislation.

e.offer suitable alternative accomodation

f. Termination due to Demoliton, reconstruction which is a matter of fact and degree Cardle v.Jacmarch in contrast to Romulus v. Henry Smith

g.Termination due to landlord requiring premises for own business (connot have bought the reversion within the past 5 years) fact and degree Cox v. Binfield

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LTA 1954 Part 2

Power of the courts following breakdown of negotiations or failure to prove a s.30 ground to the satisfaction of the court

  • to grant a lease for upto 15 years dependant on factors
  • to decide rent payable (open Market) disregarding factors
  • Other factors of the lease transferred with: O'May v. City of London Real Property
  • compensation for disturbance 1or 2x rateable value
  • Compensation for misrepresentation Inclusive Technology v. Williamson
  • Compensation for improvements under LTA 1927
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