Commercial Lease - Landlord & Tennant Act 1954 - Contracted outside question

TheScarletPixie

I would appreciate some help please regarding a clause in the lease for some new commercial premises that I'll be renting.  It's a ten year lease and I'm assuming that I have the right to stay for 10 years (subject to me paying the rent etc...) until the end of the term.  Nowhere in the contract does it say anything about giving notice.  I don't want to sign if the landlord can simply say they want me out when they feel like it.  

The contract states;
The lease will be contracted outside the security of tenure and compensations provisions of the Landlord and Tenant Act 1954 Part II (as amended).  

As I understand it, the lease is for 10 years and I have no rights to stay at the end of the term, unless we come to a new agreement.  

Thank you in advance.

user1977

Do you mean wanting you out before the 10 years are up? There's no implied right to do that, there would need to be a break clause in there.

I would strongly recommend you get legal advice though before signing up to a 10 year commercial lease, even if you did understand the basics.

daveyjp

From the questions you are asking it appears you have not taken advice from either a commercial property surveyor or solicitor.

Signing a commercial 10 year contracted out lease is a potentially more costly commitment than buying a house and very few do that without using suitably qualified professionals.

Contracted our means you waive your statutory right to a new lease after ten years.  Imagine you are doing well, you have invested thousands in the property, but with 6 months left the landlord wants you out.  You have no option but to leave and no compensation will be payable.

GDB2222

For some businesses the location is absolutely key to maintaining the goodwill. Are you okay with having to move on at the end of the ten years lease? 

Are you sure you will be able to pay the rent for the full ten years?

I agree with the others. Talk to a solicitor.

TheScarletPixie

Thank you everyone for your comments.  I wanted to make sure I understood the meaning of the term before doing anything.  I appreciate you taking the time to comment.

saajan_12

TheScarletPixie said:

I would appreciate some help please regarding a clause in the lease for some new commercial premises that I'll be renting.  It's a ten year lease and I'm assuming that I have the right to stay for 10 years (subject to me paying the rent etc...) until the end of the term.  Nowhere in the contract does it say anything about giving notice.  I don't want to sign if the landlord can simply say they want me out when they feel like it.  

The contract states;
The lease will be contracted outside the security of tenure and compensations provisions of the Landlord and Tenant Act 1954 Part II (as amended).  

As I understand it, the lease is for 10 years and I have no rights to stay at the end of the term, unless we come to a new agreement.  

Thank you in advance.

It just means the tenancy will not be covered by the 1954 Act. That means you may not be protected by some of its provisions, in particular the right to renew after the 10 year fixed term (except for certain grounds).

You have to decide whether that works for your business, ie would moving after 10 years lose any goodwill / procedures / employees / other arrangements etc you have in place. 

You should get particular advice though, this forum is mostly for residential tenancies.