Commercial Tenants' Rights

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.