The grounds for opposing a new business tenancy are set out in section 30(1) of the Landlord and Tenant Act 1954.
The landlord can only rely upon the grounds he has specified in the notice served terminating the tenancy (section 25 notice). If the landlord sells his interest after serving the section 25 notice, the purchaser landlord can only rely upon the grounds specified in the previous landlord’s notice.
The grounds for opposing are as follows:
(a) The state of repair resulting from the tenant’s failure to comply with the repair obligations;
(b) Persistent failure by the tenant to pay the rent;
(c) Other substantial breaches by the tenant;
(d) The landlord has offered other suitable accommodation bearing in mind all the relevant circumstances including the goodwill of the busisness;
(e) Where the tenant is a sub-tenant and possession is required for letting or disposing of whole of property;
(f) Where on the termination of the current tenancy the landlord intends to demolish and/or reconstruct the premises comprised in the holding and the landlord could not reasonably do so without obtaining possession of the holding;
(g) That on the termination of the current tenancy the landlord intends to occupy the holding for the purposes of a business to be carried out by him or as his residence.
If the landlord’s opposition to a new tenancy is challenged at court and the landlord has to establish any of the above grounds then grounds (a) (b) (c) and (d) are discretionary in that the court has to consider whether in all the circumstances: ‘the tenant ought not to be granted a new tenancy. If the landlord establishes any of th other grounds then the court must find in favour of the landlord.
There is much case work on the above subject and we at Quinn & Co are fully conversant with the Landlord & Tenant Act 1954 and can guide you through the lease renewal procedure whether you be a landlord or a tenant.
This article does not constitute legal advice. Specific legal advice should be taken before acting on any of the topics covered.