Security of tenure for commercial leases
Most tenants of commercial premises with a lease of more than 6 months, or if they have been in occupation for more than twelve months, have security of tenure. This means that they have the right to continue to occupy the premises after the lease has come to a natural end on similar terms to the original lease.
This protection is given by the Landlord & Tenant Act 1954:
- Part I Security of Tenure for Residential Tenants.
- Part II Security of Tenure for Business, Professional and other Tenants.
Security of tenure can be important for commercial tenants, for example; if they have installed a lot of equipment, If the location is vital to their operation, if business continuity is important and so on.
If negotiations to permit continued occupation fail at the end of the original lease, the tenant can apply to the Court for a new lease.
- If the tenant has not carried out repair and maintenance obligations.
- Persistent delay in paying rent.
- Other substantial breaches of obligations under the tenancy, or any other reason connected with the tenant’s use or management of the holding.
- The landlord has offered alternative suitable accommodation.
- The tenant is a sub tenant of part of the premises, and the landlord would be able to get more rent if they leased the entire premises.
- The landlord intends to demolish or reconstruct the premises.
- The landlord intends to occupy the premises.
The landlord and the tenant can agree to exclude, or ‘contract out’ the right to security of tenure, giving the landlord automatic possession at the end of the lease. This might be agreed, for example, if the landlord intends to redevelop the premises, or to occupy it themselves, or they may simply want flexibility at the end of the lease. See Statutory declaration excluding security of tenure for more information.
 Related articles on Designing Buildings Wiki
- Break clauses in leases.
- Ground rent.
- Landlord and Tenant Act.
- Lease Negotiations - Tenants Checklist.
- Penal contractual terms.
- Rent-free period.
- Rent in administration.
- Rent review.
- Sample retail lease.
- Service charge.
- Statutory declaration excluding security of tenure
- Vacant possession.
 External references
- The Landlord & Tenant Act 1954.
- Ashurst, Business Tenancies: Contracting out of the Landlord and Tenant Act 1954.
Featured articles and news
What is the Home Quality Mark? Find out how it can help you when buying/renting a new home.
Business Secretary launches £246m Faraday Challenge to establish UK as world leader in battery technology.
Government announces new plans for regulations to improve safety and security awareness of drone users.
Read our introductory article to the various different types of fuel.
IHBC book review: Charles Barry’s monumental struggle to rebuild the Houses of Parliament.
Read about RSHP's British Museum extension which has been shortlisted for the 2017 Stirling Prize.
Read our introductory article to building a house extension.
More updates from DCMS about the large-scale testing of cladding systems and the number of buildings affected.
UandI secure resolution to grant planning consent for major new regeneration project.
IHBC article considers how heritage is dealt with when infrastructure schemes are authorised.
It was the tallest structure in the world for 3,800 years, but to this day the exact construction techniques are a mystery.
Shortlist for the industry's most coveted award announced.
Government responds to Mark Farmer's review of industry, rejecting the call for a levy on clients.