Wragge Lawrence Graham & Co

UK 200 2014 position: 28

Section 30(1)(c) LTA 1954 — a rare case involving the refusal of a landlord to grant a renewal lease

By Paul Kent and Rob Bridgman

As a general rule, if the requirements of section 23 of the Landlord and Tenant Act 1954 (LTA 1954) are satisfied, and the lease is not otherwise ‘outside’ of the LTA 1954, the tenant of commercial premises has a statutory right to be granted a renewal lease upon expiry of its lease. In the event that the landlord does not grant a renewal lease, the tenant may be entitled to receive compensation from the landlord. Whether this compensation is payable or not will depend upon the reason for the landlord’s refusal to grant the new lease.

These reasons — known as ‘the grounds’ — are set out in section 30(1) of the LTA 1954. Litigation involving this section usually relates to ground (f), where the landlord wishes to redevelop the tenant’s premises.

The Court of Appeal has had a rare opportunity to consider the meaning of ground (c). This states that ‘…the tenant ought not to be granted a new tenancy in view of other substantial breaches by him of his obligations under the current tenancy, or for any other reason connected with the tenant’s use or management of the holding’…

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