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To bring a business tenancy to an end on the contractual expiry date or at any point thereafter, a tenant may rely on a notice given under section 27 of the Landlord and Tenant Act 1954 (LTA 1954). This Checklist sets out the circumstances and procedure for serving such a notice. For wider guidance on ending LTA 1954 tenancies, refer to Practice Note: LTA 1954 business lease renewal—termination. It outlines timing and the method of service in clear terms. Is the tenancy for a fixed term? A section 27 notice is available only where the tenancy is for a fixed term. It is not available for periodic tenancies. Nevertheless, a tenant may end a periodic tenancy by giving a common law notice to quit (see Practice Note: LTA 1954 business lease renewal—termination under the heading Termination of LTA 1954 tenancies). Have any other notices been served? Once a tenant has served a section 26 request, they cannot then serve a section 27 notice...
Repair under the common law Under the common law, a landlord, relative to a tenant, bears notably heavy duties regarding upkeep and repair of the leased premises, see Practice Note: Repair clauses in commercial leases in Scotland—Repair under the common law. Within commercial leasing, landlords will almost invariably aim to exclude all such common law repairing liabilities for the demised premises, though not for common areas in multi-let buildings; see Practice Note: Service charge and outgoing provisions in commercial leases in Scotland. Consequently, tenants usually shoulder substantial repair commitments. The prevalent model is the full repairing and insuring (FRI) lease, under which the tenant assumes responsibility for repairs of every kind save for damage arising from insured risks; see Practice Note: Repair clauses in commercial leases in Scotland—Contracting out of the common law—the full repairing and insuring (FRI) Lease and The modern commercial lease: Stair Memorial Encyclopaedia [466]...
This checklist is intended for use in a due diligence process where a purchaser, tenant or lender is examining title to property that is burdened by, or enjoys the benefit of, positive covenants. It sets out the relevant matters to consider when reviewing and reporting on positive covenants. Are there any positive covenants affecting the property? A positive covenant is a commitment to perform an act or to make a financial contribution to something. Typical examples in property transactions include covenants to erect and keep in repair a fence, or to contribute towards the upkeep of a shared driveway or other communal facilities. HM Land Registry has no duty or authority to record the benefit of a positive covenant on a registered title...
Original news Mr K (CAS-44560-Q1C8)—12 September 2025 Summary The Pensions Ombudsman upheld a complaint concerning a scheme’s inadequate due diligence on a high-risk investment. The professional trustee was found to have breached both common law and statutory duties by committing funds to storage pods and airport parking. As the investments lacked diversification and were overly speculative, no reasonable trustee would have proceeded. The determination underscores that a professional trustee can be accountable for investment losses even where the member was heavily engaged in making the decision... What were the facts? Mr K was a member of the Blick-Horsham Limited Executive Pension Scheme (the Scheme), a small self-administered scheme (SSAS). The Scheme’s trustees were Rowanmoor Trustees Limited (RTL) and Mr K. He proposed investing in storage pods and airport parking via Store First Limited (Store) and Park First Limited (Park). In February 2015, RTL warned Mr K that the proposed investments featured a two-year break clause and advised him to consider how a replacement tenant might be...
Original news Taylor v Taylor [2017] EWHC 1080 (Ch) In June 2012, a father, Mark, and his son, Boyd, acquired a transfer of a modest hotel with a campsite, together by way of conveyance. It was undisputed between both sides that this made them joint tenants at law at the time. The conveyance concerned part only of a wider tract of land within a larger holding. In May 2013, Mark served a notice to sever the joint tenancy which, on its very face, converted the beneficial joint tenancy (assuming that was its nature) into a tenancy in common in equal proportions. Nonetheless, Mark asserted a four-fifths share of the beneficial interest, citing his larger contribution to the purchase price. By contrast, Boyd maintained he was due one-half of the beneficial interest, on the basis of a promise to that effect and his reliance: he entered the deal, permitted funds he was entitled to be applied, and worked (with his wife) at the hotel and campsite. What are the practical...
In this issue: Social housing Education Planning Local government finance Public procurement Governance Healthcare Social care Licensing Environmental law and climate change LexTalk®Local Government: a Lexis®Nexis community Daily and weekly news alerts New and updated content Social housing Local authority successful in Court of Appeal on suitability of accommodation offered in performance of prevention duty (Fatolahzadeh v LB of Barnet) Fatolahzadeh v LB of Barnet saw Genevieve Screeche-Powell represent the council, which prevailed in resisting a Housing Act 1996 (HA 1996), section 204 appeal pursued by a homeless applicant. Two central issues of principle arose: (i) whether Parliament intended that an alleged non-compliance with the ‘new’ HA 1996, s 189A duties should automatically vitiate any later decision taken to meet the duty to secure suitable accommodation; and (ii) the extent to which the section 202 review procedure can rectify asserted shortcomings. This marks the first occasion on which the Court...
What is a service charge? A service charge is a sum a tenant may have to pay to a landlord under a commercial lease to reimburse the landlord for services they provide in connection with the common parts and for the upkeep of the property. Commonly, this applies where multiple tenants occupy one property, for example a shopping centre, and the landlord looks after the communal parts of the building for everyone’s benefit. In most contemporary leases the tenant pays the service charge on account, before the landlord incurs the expenditure, calculated from an estimate of the next year’s costs. At the close of the accounting period a reconciliation is prepared and any shortfall or surplus is settled by or to the tenant. Sometimes, earlier forms of lease stipulate that the landlord must meet the outlay first. For more detail on service charges ordinarily charged to tenants of multi-occupied buildings by commercial landlords in Scotland, see Practice Note: Service charge and outgoing provisions in commercial leases in Scotland. ...
Practice Note overview This Practice Note sets out the key concepts and common hazards involved in the reinstatement of tenants’ alterations. The topic is often contentious: landlords may inherit premises in an unlettable condition, and tenants can be required to carry out reinstatement works—potentially lasting months—right at the eleventh hour... Scope exclusions Reinstatement following damage by an insured (or uninsured) risk—see instead Practice Notes: Negotiation guide—insurance clauses—commercial leases and Insurance issues for tenants Dilapidations in relation to disrepair—see instead: Dilapidations—overview No reinstatement obligation Where there is no obligation to reinstate the demised premises, any lawful alteration becomes part of the premises and the tenant cannot be compelled to reverse it. The tenant must yield up the premises with those alterations, although it may remove any tenant’s fixtures up to the very last moment of the term—see Practice Note: Fixtures and fittings. In Peel Land and Property v TS Sheerness Steel, the Court of Appeal confirmed that, while a tenant is,...
This Practice Note summarises several of the principal ways in which a residential flat project can be structured. It provides an overview of alternative leasehold flat arrangements for both developers and purchasers of residential flats. A central issue in residential leasehold developments is securing adequate, enforceable covenants for the repair, maintenance and insurance of the shared parts of the development (that is, the structure, foundations, roof, principal walls, internal and external communal areas and common services). It also addresses how obligations for the common parts are allocated among the key parties. The following structures, and their differing approaches to apportioning responsibility for the shared parts between landlords, management companies and tenants, are considered: developer/landlord retains the reversion and the management role developer/landlord keeps the reversion but outsources management duties developer/landlord keeps the reversion while tenants assume management duties developer/landlord transfers the reversion and management functions to the tenants ‘criss-cross’ or ‘crossover’ arrangement ‘cat’s cradle’ arrangement This Practice...
DATE [ date ] Parties [ name of Landlord ] [ of, or incorporated in, England and Wales with company registration number [ number ], whose registered office is at ] [ address ] (the Landlord) [ name of Tenant ] of [ address ] (the Tenant) [ [ name of Guarantor ] of [ address ] (the Guarantor) ] FORTHCOMING CHANGE : The Renters’ Rights Act 2025 obtained Royal Assent on 27 October 2025. For guidance on the Act’s effect on residential tenancies in England, refer to Practice Note: Renters’ Rights Act 2025—key provisions...
Date [ date ] Parties [ name of first joint tenant ] of [ address ] [ name of second joint tenant ] of [ address ] (collectively referred to as Joint Tenants) background (A) Pursuant to [ [ a conveyance OR transfer ] OR an assent ] dated [ date ], entered into between (1) [ [ names of seller(s)/transferor(s) ] OR [ name(s) of personal representative(s) ] ]...
Date [ date ] Parties [ name of first joint tenant ] of [ address ] [ name of second joint tenant ] of [ address ] (collectively known as the Trustees) background (A) The Property set out in the Schedule (Property) is held by the Trustees on trust for themselves as tenants in common in equal...
Section 1(1)(a) of the Housing Act 1988 (HA 1988) Under this provision in the Act, only an individual can be the tenant of an assured tenancy. Consequently, a company letting cannot qualify as an assured shorthold tenancy (AST). The HA 1988 also specifies categories of tenancy that are excluded from being ASTs, including business tenancies under the Act. As a result, the arrangement will then fall either as a common law tenancy—outside the HA 1988 and subject to ordinary contractual principles—or, where the relevant requirements are satisfied, as a business tenancy...
Damages After the lease ends, a landlord’s terminal dilapidations claim lies in damages. The recoverable sum is determined by common law rules for assessing loss arising from breach of the repairing covenant, but is curtailed by the statutory ceiling in section 18(1) of the Landlord and Tenant Act 1927 (LTA 1927). At common law, the benchmark for disrepair is the reasonable expenditure required to restore the premises to the condition they should have been in at the point of lease expiry. The claim for damages may, in addition, encompass foreseeable knock-on losses, including rent foregone during any period when the state of disrepair prevents the property being relet...
This query addresses what is required for a notice to quit to be effective. In general, such notices are controlled by common law principles that have developed over time. There are, however, situations in which service is not permitted (for instance, where a residential tenancy benefits from the Housing Act 1985 (HA 1985) or the Housing Act 1988 (HA 1988)) and circumstances where a particular format is mandated (for example, where a business tenancy enjoys the protection of the Landlord and Tenant Act 1954 (LTA 1954), the giving of a notice under LTA 1954, s 25 being comparable to a notice to quit, albeit with significant distinctions in important respects when compared)...