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Leases Business Tenancies Notes

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A more recent version of these Leases Business Tenancies notes – written by Cambridge/Bpp/College Of Law students – is available here.

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Land: Leases - Business Tenancies - Landlord and Tenant Act 1954 Protection for Business Tenants - Landlord and Tenant Act 1954 Part II

(as amended by The Regulatory Reform (Business Tenancies) (England and Wales) Order 2003: statutory instrument, came into force 1 June 2004).

- LTA 1954 Part II: allows business tenants to stay on at end of lease + apply for new tenancy. unless s30: grounds of opposition - if present, landlord can refuse new tenancy.

Application: Who is Protected by the Act?

- s23(1): Act protects tenants who occupy premises for the purpose of a business. s23(2): business - inc. trade, profession, employment, any activity carried on by body of persons (corporate or not). s23(3): holding - lease property exc. any part not occupied by t. or person employed by t. for purposes of business.
? t. can only apply for new tenancy of 'holding': i.e. part of premises t. occupies. s23(4): not t. carrying on business in breach of lease (unless l. consents/acquiesces). app. to all tenancies: legal + equitable - but: not licence.

- Occupation: question of fact - dep. on presence + control - esp. relevant where t. sub-lets: Graysim Holdings Ltd v P&O Property Holdings Ltd [1996]: t. of market hall had sub-let hall to 35 stall-holders; t. employed superintendant who occupied office ? HoL: t. NOT in occupation - insufficient presence + control.
[Ld Nicholls]: if interest of 3rd party in nature of tenancy, 3rd party is normally occupier. Trans-Britannia Properties Ltd v Darby Properties Ltd [1986]: t. had sub-let lock-up garages; t. did not maintain accommodation on premises, employ guard, make regular visits ? CoA: t. not in occupation. residential: if t. retains substantial control + presence ? t. in occupation for business of sub-letting.

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