Commercial landlords across Worcestershire have been advised to protect themselves from the challenges of regaining possession from tenants.
This advice comes after a recent high-profile court case highlighted the tenant-favouring balance of power under the Landlord and Tenant Act 1954, marking its 70th anniversary.
The Act was introduced post-World War II to regulate commercial landlord-tenant relationships.
However, Phil Hunt, senior associate at Worcester-based law firm mfg Solicitors, has called for a review of this now "ageing piece of legislation".
He said: "The Act was considered a way to support tenants in a market weighted heavily towards landlords’ interests at the time.
"The general rule is that a commercial tenant operating a business from its premises has the right to remain in the property after the end date of its lease, unless the landlord can rely on specific exceptions."
Mr Hunt has urged landlords to be aware of their legal rights, including their position if they intend to redevelop their premises.
This requires consideration of the 'Ground F' exception.
He said: "Ground F is where the landlord has an intention to redevelop the property and the works cannot be carried out while the tenant remains in situ.
"At first glance, this seems relatively straightforward, but the courts have made it difficult for landlords to rely on it.
"Landlords need to first prove a 'firm and settled' intention to redevelop their property, including applying for planning permission."
A recent case involving supermarket giant Sainsbury’s and a property it rented in London put the spotlight on landlord/tenant rights.
Sainsbury’s unsuccessfully attempted to use Ground F to remove its tenant.
Mr Hunt said: "Landlords who intend to redevelop or regain possession of their property at the end of a lease term should take legal advice as early as possible.
"Discussing your next step before you serve a notice can assist in understanding the options available.
"Equally, landlords looking to let a commercial property should consider the consequences of whether or not a lease excludes the right to security of tenure.
"This is often a key negotiation point in heads of terms and discussing future plans with a solicitor before finalising your heads of terms could mean avoiding potential issues later on."
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