SECURITY OF TENURE 1954 ACT
A tenancy protected by the Act may continue until it’s terminated in accordance with the provisions
of the Act.
Section 23: “this Act applies to any tenancy where the property comprised in the tenancy is or
includes premises which are occupied by the tenant and are so occupied for the purposes of a
business carried on by him or for those and other purposes”
The Act provides for only 7 methods of termination:
1. Section 25 notice by Landlord to terminate the tenancy (initiated by Landlord)
2. Section 26 request by Tenant for a new tenancy (initiated by Tenant)
3. Forfeiture (initiated by Landlord)
4. Surrender (initiated by Landlord and Tenant)
Forfeiture and surrender are common law methods of termination allowed by the Act.
5. Notice to quit a periodic tenancy (initiated by Tenant)
In the case of a periodic tenancy, the Act allows the tenant to serve a notice to quit which follows
the common law method. Doesn’t work both ways. The LL can’t serve notice to quit on the tenant.
6. Section 27 notice by tenant to end a fixed term tenancy (initiated by Tenant)
Similarly, section 27 allows the tenant to serve a notice on the landlord to end a fixed term tenancy
but doesn’t afford the landlord the same right.
7. Section 27(1A) by Tenant ceasing to be in occupation for business purposes at end of the
lease (initiated by Tenant)
27 (1A) enables the tenancy to end by effluxion of time where the tenant ceases to be in occupation
for business purposes at the end of the lease.
Section 25 Procedure
If there are no grounds for forfeiture and the tenant won’t agree to surrender, the only way a
landlord can terminate a business tenancy protected by the Act is under s25. Can be used to
terminate either a fixed term or periodic tenancy but the LL must follow the correct procedure.
First, the landlord must serve a section 25 notice on the tenant (form LT1/LT2).
- Form 1 to be used when LL won’t oppose a new lease being granted to the tenant and Form
2 for use when LL wants vacant possession and will oppose a new lease.
Time Limits
The notice has to be served no less than six months' and no more than 12 months before the
termination date specified in the notice. And the termination date can’t be sooner than the lease
could otherwise have come to an end under the common law.
If it’s too late to serve a section 25 notice (because it’s after the end of the fixed term) the landlord
hasn’t lost the opportunity to terminate the tenancy altogether it’s just that the termination date
will be later and the tenancy will continue beyond the end of the contractual term.
- A s25 notice can be served specifying a termination date later than the contractual expiry
date, as long as the tenant is given at least six months, but no more than 12 months' notice.
Landlord’s Grounds for Opposing a New Tenancy
When the landlord serves his s 25 notice, or his counter-notice to a tenant’s s 26 request, if he
wishes to oppose the grant of a new lease he must specify his grounds of opposition.
LL can only oppose a new tenancy on one or more of the seven grounds specified in s30 1954 Act.
A tenancy protected by the Act may continue until it’s terminated in accordance with the provisions
of the Act.
Section 23: “this Act applies to any tenancy where the property comprised in the tenancy is or
includes premises which are occupied by the tenant and are so occupied for the purposes of a
business carried on by him or for those and other purposes”
The Act provides for only 7 methods of termination:
1. Section 25 notice by Landlord to terminate the tenancy (initiated by Landlord)
2. Section 26 request by Tenant for a new tenancy (initiated by Tenant)
3. Forfeiture (initiated by Landlord)
4. Surrender (initiated by Landlord and Tenant)
Forfeiture and surrender are common law methods of termination allowed by the Act.
5. Notice to quit a periodic tenancy (initiated by Tenant)
In the case of a periodic tenancy, the Act allows the tenant to serve a notice to quit which follows
the common law method. Doesn’t work both ways. The LL can’t serve notice to quit on the tenant.
6. Section 27 notice by tenant to end a fixed term tenancy (initiated by Tenant)
Similarly, section 27 allows the tenant to serve a notice on the landlord to end a fixed term tenancy
but doesn’t afford the landlord the same right.
7. Section 27(1A) by Tenant ceasing to be in occupation for business purposes at end of the
lease (initiated by Tenant)
27 (1A) enables the tenancy to end by effluxion of time where the tenant ceases to be in occupation
for business purposes at the end of the lease.
Section 25 Procedure
If there are no grounds for forfeiture and the tenant won’t agree to surrender, the only way a
landlord can terminate a business tenancy protected by the Act is under s25. Can be used to
terminate either a fixed term or periodic tenancy but the LL must follow the correct procedure.
First, the landlord must serve a section 25 notice on the tenant (form LT1/LT2).
- Form 1 to be used when LL won’t oppose a new lease being granted to the tenant and Form
2 for use when LL wants vacant possession and will oppose a new lease.
Time Limits
The notice has to be served no less than six months' and no more than 12 months before the
termination date specified in the notice. And the termination date can’t be sooner than the lease
could otherwise have come to an end under the common law.
If it’s too late to serve a section 25 notice (because it’s after the end of the fixed term) the landlord
hasn’t lost the opportunity to terminate the tenancy altogether it’s just that the termination date
will be later and the tenancy will continue beyond the end of the contractual term.
- A s25 notice can be served specifying a termination date later than the contractual expiry
date, as long as the tenant is given at least six months, but no more than 12 months' notice.
Landlord’s Grounds for Opposing a New Tenancy
When the landlord serves his s 25 notice, or his counter-notice to a tenant’s s 26 request, if he
wishes to oppose the grant of a new lease he must specify his grounds of opposition.
LL can only oppose a new tenancy on one or more of the seven grounds specified in s30 1954 Act.
