Statutory declaration excluding security of tenure
Most tenants of commercial premises with a lease of more than 6 months have security of tenure. This means 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 and 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.
To regain possession, the landlord must serve notice under the Act setting out the grounds for opposing renewal of the lease, for example if the tenant has not carried out repair and maintenance obligations.
However, 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 refurbish or redevelop the premises, or to occupy it themselves, or they may simply want flexibility at the end of the lease.
To contract out security of tenure, the landlord must issue a Landlord’s Notice to Exclude Security of Tenure and in response to this the tenant completes a Declaration confirming that they understand and accept they are entering into a lease with no security of tenure. The notice and the declaration must follow a prescribed format.
If the landlord's notice is served at least 14 days before the lease is entered into, then a simple declaration can be used. If the landlord's notice is served less than 14 days before the lease is entered into then a statutory declaration is required, signed before a solicitor.
The lease must then refer to the notice, the declaration and the agreement to exclude security of tenure.
Leases that exclude security of tenure may have a lower rent.
[edit] Related articles on Designing Buildings Wiki
- Betterment.
- Break clauses in leases.
- Build to Suit.
- Dilapidations.
- Ground rent.
- Lease Negotiations - Tenants Checklist.
- Leasehold.
- Rent-free period.
- Rent in administration.
- Rent review.
- Reversion.
- Sample retail lease.
- Schedule of dilapidations.
- Security of tenure for commercial leases.
- Service charge.
- Supersession.
- Vacant possession.
[edit] External references
Featured articles and news
A threat to the creativity that makes London special.
How can digital twins boost profitability within construction?
A brief description of a smart construction dashboard, collecting as-built data, as a s site changes forming an accurate digital twin.
Unlocking surplus public defence land and more to speed up the delivery of housing.
The Planning and Infrastructure bill oulined
With reactions from IHBC and others on its potential impacts.
Farnborough College Unveils its Half-house for Sustainable Construction Training.
Spring Statement 2025 with reactions from industry
Confirming previously announced funding, and welfare changes amid adjusted growth forecast.
Scottish Government responds to Grenfell report
As fund for unsafe cladding assessments is launched.
CLC and BSR process map for HRB approvals
One of the initial outputs of their weekly BSR meetings.
Architects Academy at an insulation manufacturing facility
Programme of technical engagement for aspiring designers.
Building Safety Levy technical consultation response
Details of the planned levy now due in 2026.
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems, as first project of the newly formed government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.
The restoration of the novelist’s birthplace in Eastwood.
Life Critical Fire Safety External Wall System LCFS EWS
Breaking down what is meant by this now often used term.
PAC report on the Remediation of Dangerous Cladding
Recommendations on workforce, transparency, support, insurance, funding, fraud and mismanagement.
New towns, expanded settlements and housing delivery
Modular inquiry asks if new towns and expanded settlements are an effective means of delivering housing.