Under the Landlord and Tenant Act 1954 security of tenure has been afforded to business tenants so that a lease of commercial premises does not come to an end on the expiry of the contractual term. It continues until terminated in accordance with the provisions of the Landlord and Tenant Act 1954.
The effect of the Landlord and Tenant Act 1954 can now be excluded by agreement between the parties provided certain statutory requirements are met.
Prior to the amendments to the Landlord and Tenant Act 1954 which came into force on 1 June 2004 when a new section 38A was inserted into the Landlord and Tenant Act 1954, it was necessary for the parties to apply to the court for an order authorising an agreement that excluded the security of tenure provisions in the Landlord and Tenant Act 1954, subject to section 38(4) of the Landlord and Tenant Act 1954 (now repealed). An agreement purporting to exclude the operation of the Landlord and Tenant Act 1954 would otherwise be void by virtue of section 38 of the Landlord and Tenant Act 1954.
The new section 38A amendment to the Landlord and Tenant Act introduced in 2004 now makes it possible to exclude the provisions of sections 24 to 28 of the Landlord and Tenant Act 1954 without a court order.
The agreement to exclude the Landlord and Tenant Act 1954 must be preceded by the service of a notice in a prescribed form and the tenant must also make a statutory declaration in the prescribed form before entering into the tenancy.
