Contracted-out tenants: take note

By Jessica Ready

We tend to focus on the risks to a landlord of a tenant remaining in occupation beyond the expiry of a contracted-out lease.

However, the recent case of Barclays Wealth Trustees (Jersey) Ltd v Erimus Housing Ltd [2013] serves as an important lesson to tenants of a contracted-out lease.

The tenant occupied business premises on a five-year contracted-out lease that expired on 31 October 2009 (the lease). It paid an annual rent under the lease…

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