Regulatory Reform of Business Tenancies

The Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 came into force on 1st June 2004. This introduced a number of changes to the Landlord and Tenant Act 1954 though the change that attracted most attention was the fact that from that date it was no longer necessary to obtain an Order of the Court before creating a lease which does not carry the protection of sections 24-28 of the Landlord and Tenant Act 1954.
 

The current procedure to grant a lease that does not confer security of tenure on the tenant is to:

  • Serve a notice in the prescribed form or substantially in that form
  • Comply with the requirements set out in schedule 2

 The requirements are:

  • The notice must be served on the tenant not less than 14 days before the lease is entered into or, if earlier, not less than 14 days before the tenant is contractually bound.
  • Provided that the 14 days notice is given before the tenancy is entered into (or before the tenant is contractually bound to do so) the tenant or someone on the tenants behalf must make a simple declaration (not a statutory declaration) in a prescribed form or substantially in that form.
  • If 14 days notice is not given then the tenant must swear a statutory declaration (as opposed to the simple declaration) in a prescribed form or substantially in that form. This will need to be done before the lease is entered into or before the tenant is contractually bound to do so.
  • A reference to the notice and either the simple declaration or the statutory declaration needs to be contained in or endorsed on the lease. As a matter of good practice it may be prudent to bind a copy of the notice and the declaration in the lease so that it cannot become lost.
  • A clause dealing with the agreement to exclude also needs to be contained in or endorsed on the lease.

Turning now to an agreement to surrender a lease which carries security of tenure the procedure is just the same. A similar notice has to be given before the tenant is committed to agreement to the surrender – the tenant needs to make either a simple or statutory declaration dependent on whether or not the appropriate 14 notice period has been given.

Our package of documents to be downloaded contains the following:

  1. Notice to be served prior to lease or commitment to lease being entered into
  2. Simple lease declaration
  3. Statutory lease declaration
  4. Clause to be included in lease
  5. Notice to be served prior to agreement for surrender
  6. Simple surrender declaration
  7. Statutory surrender declaration
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The documents available on this site have been prepared for use in England & Wales. They may not be valid if used in other areas.