Security of tenure

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Security of tenure is a crucial consideration for both landlords and tenants when it comes to commercial property leasing.

At Moore Barlow, we understand how important it is to protect your business interests, whether you are a landlord seeking to maintain flexibility over your property or a tenant looking for stability and security in your business premises. Our experienced team of commercial lease solicitors is here to offer expert legal advice, ensuring that your rights are protected and that your lease agreement aligns with your goals.

Security of tenure provides tenants with a legal right to remain in their rented premises at the end of their lease, offering peace of mind and continuity for their business. If a tenant has the benefit of security of tenure, then a landlord would only be able to remove them once the lease terms ends on very specific and limited grounds, and the landlord would also need to follow a specific process in order to be successful.

For landlords, understanding the implications of security of tenure is vital for managing your property effectively and making informed decisions about your future property plans.

Richard Hughes

Richard Hughes

Partner | Commercial Property, Real Estate, Real Estate Finance

020 3962 5855

What is security of tenure?

Security of tenure refers to the rights that some tenants have under the Landlord and Tenant Act 1954, which gives them the right to remain in their commercial premises after the lease expires and to request a new lease on reasonable terms, which a landlord can only oppose on certain grounds. It offers protection to tenants who need stability in their business location, preventing landlords from automatically regaining possession of the property once the lease term ends.

However, not all leases automatically include security of tenure, and landlords have the option to exclude these rights from a lease through a legal process known as “contracting out.” Both parties need to fully understand the implications of security of tenure when entering into a lease agreement, as it can affect long-term planning for both the tenant’s business and the landlord’s property management.

Why would a landlord want to contract out?

It provides landlords with greater assurance that they can regain possession of their property at the end of the lease. Alternatively, if they wish the tenant to stay, the landlord has complete control over the terms of any new lease that may be offered.

What is a lease without security of tenure?

A lease without security of tenure means that the tenant does not have the automatic right to renew the lease at the end of the term, as provided under the Landlord and Tenant Act 1954. This means the landlord is not obliged to offer a new lease or allow the tenant to remain in the property when the lease expires. This exclusion must be agreed upon by both parties, formally documented, and the tenant would need to make a declaration confirming that they understand that they are giving up their rights to security of tenure before the lease is granted, often referred to as “contracting out” of security of tenure.

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At Moore Barlow, we offer a comprehensive range of property services, ensuring that all aspects of your commercial property dealings are expertly managed. Whether you are entering into a new lease or negotiating the terms of an existing one, we provide:

  • Commercial leases: Tailored advice on lease agreements, ensuring the terms suit your business needs.
  • Land development: Expert guidance on acquiring land and planning permissions for future growth.
  • Property disputes: Resolving lease disputes, ensuring your rights are protected throughout.

We offer a full range of services, including:

  • Drafting and reviewing leases: We carefully review and draft lease agreements to ensure they reflect your goals, whether you’re looking for stability in your business location or flexibility in managing your property.
  • Negotiating lease renewals: Our solicitors assist tenants in negotiating favourable lease renewal terms, or help landlords regain control of their property when appropriate.
  • Advising on contracting out: If you’re a landlord, we provide expert advice on how to legally contract out of the Landlord and Tenant Act 1954, giving you more control over your property at the end of the lease.

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Do you have to use a commercial lease solicitor for security of tenure?

While it’s not a legal requirement to use a solicitor when dealing with security of tenure, the law surrounding this area is complex, and a misstep could lead to costly consequences. Seeking professional advice ensures that you understand your legal rights and obligations, whether you’re a tenant looking for long-term security or a landlord wanting more flexibility in your property management.

Why choose Moore Barlow?

Moore Barlow has a talented team of commercial lease solicitors with vast experience in handling security of tenure matters. We are dedicated to providing bespoke legal advice tailored to your unique situation, ensuring that your business or property interests are fully protected.

With offices in London, Richmond, Southampton, Guildford, Lymington, and Woking, we offer local and national support, helping clients navigate the complexities of commercial leases and security of tenure. Our goal is to provide you with the peace of mind that comes from knowing your property arrangements are secure and that your future plans are fully supported by sound legal advice.

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Client case study – Major Group

“We’ve worked with Moore Barlow over several years, they’ve been very attentive to our needs. One of the things we appreciate the most is speed – they’ve been great at that”

Aman Singh, Major Group

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If you need expert advice on security of tenure or any other aspect of your commercial lease, our team is here to help. Contact us today to discuss your options and learn how we can assist in protecting your rights and achieving the best outcome for your business.

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