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Contracting out

10 December 2009 / Philip Sissons
Issue: 7397 / Categories: Features , Landlord&tenant , Property
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Philip Sissons examines the effect of the decision in Newham v Van Staden

The operation of the Landlord and Tenant Act 1954 (LTA 1954) will be familiar to landlord and tenant practitioners. The Act affords security of tenure to business tenants so that a lease of commercial premises does not come to an end on the expiry of the contractual term but continues until terminated in accordance with the provisions of LTA 1954.

The effect of LTA 1954 can be excluded by agreement between the parties provided certain statutory requirements are met, and the decision in Newham v Van Staden [2008] EWCA Civ 1414, [2009] All ER (D) 131 (Apr) is of potentially wide-reaching effect in determining when an agreement which purports to exclude LTA 1954 will be effective.

Prior to amendments to LTA 1954 which came into force on 1 June 2004 (when a new s 38A was inserted into LTA 1954) it was necessary for the parties to apply to the court for an order authorising an agreement which excluded the security of tenure provided by LTA 1954, sub-s 38(4), now repealed.

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