Rupert Reed QC puts the security of the landlord’s rights under the spotlight
- In an age of increasing uncertainty for businesses, we can expect greater numbers of tenants to seek new tenancies of shorter terms and with early breaks.
- The court must determine whether the tenant’s claim is fair and reasonable and will do so by comparing the hardship to each of the parties.
It is usually assumed that the tenant wants a longer lease than the landlord wishes to grant. The courts then seek a fair and reasonable solution by balancing two rival considerations.
- First, there is a statutory policy of giving a tenant who has established itself in business in particular premises security of tenure.
- Second, there is a countervailing concern that such security should not be at the expense of stifling redevelopment.
Recent economic insecurity has, however, stood that assumption on its head. There are now business tenants who, while they want a new tenancy, seek a much shorter term, and one terminable with early and frequent break dates through that term.
Conventional policy considerations are therefore
