Rights that come from statute
- Security of tenure — the right to remain and renew under Part II of the 1954 Act unless the tenancy is contracted out
- A new tenancy on statutory terms, with the rent fixed under Section 34 disregarding your occupation, goodwill and qualifying improvements
- Compensation under Section 37 where renewal is refused on the no-fault grounds
- Compensation for improvements under Part I of the 1927 Act, where the correct notices were served
- A landlord's consent to assign or sublet not to be unreasonably withheld or delayed, under the 1988 Act, with reasons given in writing within a reasonable time
- The Section 18(1) cap limiting a dilapidations claim to the loss in value of the landlord's interest
Rights that come from the lease
Break options, service charge caps, alienation rights, alteration rights and quiet enjoyment are all lease-specific. So are the protections a tenant most often wishes they had negotiated: a schedule of condition limiting repair, a service charge cap, and a break that is not conditional on full compliance with every covenant.
Where tenants lose rights without realising
Signing a contracted-out lease, missing the court deadline in a Section 25 notice, failing to serve improvement notices under the 1927 Act, or agreeing a rent review without evidence. Each is avoidable, and each is far cheaper to avoid than to remedy.
Common questions
What rights does a commercial tenant have in the UK?
Principally security of tenure and the right to renew under the 1954 Act, statutory limits on dilapidations claims, protection against unreasonable refusal of consent to assign, and whatever the lease itself grants — breaks, alterations, alienation and service charge protections.
Can a landlord evict a commercial tenant?
Only by forfeiture for breach, following the correct procedure and subject to the tenant's right to apply for relief, or by ending a 1954 Act tenancy on a proven statutory ground of opposition.
Can a landlord refuse to renew my lease?
Only on one of the seven Section 30 grounds, which must be stated in the Section 25 notice and proved. Where the ground is redevelopment, occupation by the landlord, or a suitable alternative offer, statutory compensation is payable.
Does the landlord have to accept my assignee?
Consent cannot be unreasonably withheld or delayed where the lease is qualified, and under the 1988 Act the landlord must respond in writing within a reasonable time with reasons.
Do commercial tenants have rights if the lease is contracted out?
There is no renewal right, but the lease terms, the 1927 Act improvement provisions and the Section 18(1) dilapidations cap still apply, and a well-timed negotiation before expiry usually carries real leverage.
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Chris McGarrigle MRICS, chartered since 1989, acting for occupiers across England, Scotland, Northern Ireland and Ireland.
chris@mcgarrigle.comRelated guides
- Landlord and Tenant Act 1954 Lease RenewalPart II of the Landlord and Tenant Act 1954 explained for business tenants: security of tenure, Sections 25, 26 and 30, interim rent and compensation.
- Commercial Lease ExpiryWhat to do before a commercial lease expires: renewal rights, break notices, dilapidations exposure, reinstatement and exit planning.
- Commercial Dilapidations Surveyor for TenantsTenant-side commercial dilapidations advice from an MRICS chartered surveyor: schedules, quantified demands, the Section 18 cap, the Protocol, Scott Schedules and settlement.
- Break Clauses in a Commercial LeaseHow break clauses in commercial leases work: notice periods, conditions, vacant possession, rent apportionment and the mistakes that make a break fail.