Landlord and Tenant Act 1954

General and supplementary provisions E+W

39 Saving for compulsory acquisitions. E+W

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

(2) If the amount of the compensation which would have been payable under section thirty-seven of this Act if the tenancy had come to an end in circumstances giving rise to compensation under that section and the date at which the acquiring authority obtained possession had been the termination of the current tenancy exceeds the amount of [F2 the compensation payable under section 121 of the M1 Lands Clauses Consolidation Act 1845 or section 20 of the M2 Compulsory Purchase Act 1965 in the case of a tenancy to which this Part of this Act applies], that compensation shall be increased by the amount of the excess.

(3) Nothing in section twenty-four of this Act shall affect the operation of the said section one hundred and twenty-one.

Textual Amendments

F1 S. 39(1) repealed by Land Compensation Act 1973 (c. 26), Sch. 3

F2 Words substituted by Land Compensation Act 1973 (c. 26), s. 47(3)

Marginal Citations

M1 1845 c. 19.

M2 1965 c. 56.

40 Duty of tenants and landlords of business premises to give information to each other. E+W

(1) Where any person having an interest in any business premises, being an interest in reversion expectant (whether immediately or not) on a tenancy of those premises, serves on the tenant a notice in the prescribed form requiring him to do so, it shall be the duty of the tenant to notify that person in writing within one month of the service of the notice—

(a) whether he occupies the premises or any part thereof wholly or partly for the purposes of a business carried on by him, and

(b) whether his tenancy has effect subject to any sub-tenancy on which his tenancy is immediately expectant and, if so, what premises are comprised in the sub-tenancy, for what term it has effect (or, if it is terminable by notice, by what notice it can be terminated), what is the rent payable thereunder, who is the sub-tenant, and (to the best of his knowledge and belief) whether the sub-tenant is in occupation of the premises or of part of the premises comprised in the sub-tenancy and, if not, what is the sub-tenant’s address.

(2) Where the tenant of any business premises, being a tenant under such a tenancy as is mentioned in subsection (1) of section twenty-six of this Act, serves on any of the persons mentioned in the next following subsection a notice in the prescribed form requiring him to do so, it shall be the duty of that person to notify the tenant in writing within one month after the service of the notice—

(a) whether he is the owner of the fee simple in respect of those premises or any part thereof or the mortgagee in possession of such an owner and, if not,

(b) (to the best of his knowledge and belief) the name and address of the person who is his or, as the case may be, his mortgagor’s immediate landlord in respect of those premises or of the part in respect of which he or his mortgagor is not the owner in fee simple, for what term his or his mortgagor’s tenancy thereof has effect and what is the earliest date (if any) at which that tenancy is terminable by notice to quit given by the landlord.

(3) The persons referred to in the last foregoing subsection are, in relation to the tenant of any business premises,—

(a) any person having an interest in the premises, being an interest in reversion expectant (whether immediately or not) on the tenant’s, and

(b) any person being a mortgagee in possession in respect of such an interest in reversion as is mentioned in paragraph (a) of this subsection;

and the information which any such person as is mentioned in paragraph (a) of this subsection is required to give under the last foregoing subsection shall include information whether there is a mortgagee in possession of his interest in the premises and, if so, what is the name and address of the mortgagee.

(4) The foregoing provisions of this section shall not apply to a notice served by or on the tenant more than two years before the date on which apart from this Act his tenancy would come to an end by effluxion of time or could be brought to an end by notice to quit given by the landlord.

(5) In this section—

• the expression “business premises” means premises used wholly or partly for the purposes of a business;

• the expression “mortgagee in possession” includes a receiver appointed by the mortgagee or by the court who is in receipt of the rents and profits, and the expression “his mortgagor” shall be construed accordingly;

• the expression “sub-tenant” includes a person retaining possession of any premises by virtue of [F3 the M3 Rent Act 1977] after the coming to an end of a sub-tenancy, and the expression “sub-tenancy” includes a right so to retain possession.

Textual Amendments

F3 Words substituted by Rent Act 1977 (c. 42), s. 155(2), Sch. 23 para. 17

Marginal Citations

M3 1977 c. 42.

41 Trusts. E+W

(1) Where a tenancy is held on trust, occupation by all or any of the beneficiaries under the trust, and the carrying on of a business by all or any of the beneficiaries, shall be treated for the purposes of section twenty-three of this Act as equivalent to occupation or the carrying on of a business by the tenant; and in relation to a tenancy to which this Part of this Act applies by virtue of the foregoing provisions of this subsection—

(a) references (however expressed) in this Part of this Act and in the Ninth Schedule to this Act to the business of, or to carrying on of business, use, occupation or enjoyment by, the tenant shall be construed as including references to the business of, or to carrying on of business, use, occupation or enjoyment by, the beneficiaries or beneficiary;

(b) the reference in paragraph (d) of [F4 subsection (1) of] section thirty-four of this Act to the tenant shall be construed as including the beneficiaries or beneficiary; and

(c) a change in the persons of the trustees shall not be treated as a change in the person of the tenant.

(2) Where the landlord’s interest is held on trust the references in paragraph (g) of subsection (1) of section thirty of this Act to the landlord shall be construed as including references to the beneficiaries under the trust or any of them; but, except in the case of a trust arising under a will or on the intestacy of any person, the reference in subsection (2) of that section to the creation of the interest therein mentioned shall be construed as including the creation of the trust.

Textual Amendments

F4 Words inserted by Law of Property Act 1969 (c. 59), s. 1(2)

[F5 41A Partnerships. E+W

(1) The following provisions of this section shall apply where—

(a) a tenancy is held jointly by two or more persons (in this section referred to as the joint tenants); and

(b) the property comprised in the tenancy is or includes premises occupied for the purposes of a business; and

(c) the business (or some other business) was at some time during the existence of the tenancy carried on in partnership by all the persons who were then the joint tenants or by those and other persons and the joint tenants’ interest in the premises was then partnership property; and

(d) the business is carried on (whether alone or in partnership with other persons) by one or some only of the joint tenants and no part of the property comprised in the tenancy is occupied, in right of the tenancy, for the purposes of a business carried on (whether alone or in partnership with other persons) by the other or others.

(2) In the following provisions of this section those of the joint tenants who for the time being carry on the business are referred to as the business tenants and the others as the other joint tenants.

(3) Any notice given by the business tenants which, had it been given by all the joint tenants, would have been—

(a) a tenant’s request for a new tenancy made in accordance with section 26 of this Act; or

(b) a notice under subsection (1) or subsection (2) of section 27 of this Act;

shall be treated as such if it states that it is given by virtue of this section and sets out the facts by virtue of which the persons giving it are the business tenants; and references in those sections and in section 24A of this Act to the tenant shall be construed accordingly.

(4) A notice given by the landlord to the business tenants which, had it been given to all the joint tenants, would have been a notice under section 25 of this Act shall be treated as such a notice, and references in that section to the tenant shall be construed accordingly.

(5) An application under section 24(1) of this Act for a new tenancy may, instead of being made by all the joint tenants, be made by the business tenants alone; and where it is so made—

(a) this Part of this Act shall have effect, in relation to it, as if the references therein to the tenant included references to the business tenants alone; and

(b) the business tenants shall be liable, to the exclusion of the other joint tenants, for the payment of rent and the discharge of any other obligation under the current tenancy for any rental period beginning after the date specified in the landlord’s notice under section 25 of this Act or, as the case may be, beginning on or after the date specified in their request for a new tenancy.

(6) Where the court makes an order under section 29(1) of this Act for the grant of a new tenancy on an application made by the business tenants it may order the grant to be made to them or to them jointly with the persons carrying on the business in partnership with them, and may order the grant to be made subject to the satisfaction, within a time specified by the order, of such conditions as to guarantors, sureties or otherwise as appear to the court equitable, having regard to the omission of the other joint tenants from the persons who will be the tenants under the new tenancy.

(7) The business tenants shall be entitled to recover any amount payable by way of compensation under section 37 or section 59 of this Act.]

Textual Amendments

F5 S. 41A inserted by Law of Property Act 1969 (c. 59), s. 9

[F6 42 Groups of companies. E+W

(1) For the purposes of this section two bodies corporate shall be taken to be members of a group if and only if one is a subsidiary of the other or both are subsidiaries of a third body corporate.

• In this subsection “subsidiary” has [F7 the meaning given by section 736 of the Companies Act 1985].

(2) Where a tenancy is held by a member of a group, occupation by another member of the group, and the carrying on of a business by another member of the group, shall be treated for the purposes of section 23 of this Act as equivalent to occupation or the carrying on of a business by the member of the group holding the tenancy; and in relation to a tenancy to which this Part of this Act applies by virtue of the foregoing provisions of this subsection—

(a) references (however expressed) in this Part of this Act and in the Ninth Schedule to this Act to the business of or to use occupation or enjoyment by the tenant shall be construed as including references to the business of or to use occupation or enjoyment by the said other member;

(b) the reference in paragraph (d) of subsection (1) of section 34 of this Act to the tenant shall be construed as including the said other member; and

(c) an assignment of the tenancy from one member of the group to another shall not be treated as a change in the person of the tenant.

(3) Where the landlord’s interest is held by a member of a group—

(a) the reference in paragraph (g) of subsection (1) of section 30 of this Act to intended occupation by the landlord for the purposes of a business to be carried on by him shall be construed as including intended occupation by any member of the group for the purposes of a business to be carried on by that member; and

(b) the reference in subsection (2) of that section to the purchase or creation of any interest shall be construed as a reference to a purchase from or creation by a person other than a member of the group.]

Textual Amendments

F6 S. 42 substituted by virtue of Law of Property Act 1969 (c. 59), s. 15, Sch. 1

F7 Words substituted by Companies Act 1989 (c. 40, SIF 27), ss. 144(4), 213(2), 215(2), Sch. 18 para. 3

43 Tenancies excluded from Part II. E+W

(1) This Part of this Act does not apply—

(a) to a tenancy of an agricultural holding [F8 [F9 which is a tenancy in relation to which the Agricultural Holdings Act 1986 applies or a tenancy which would be a tenancy of an agricultural holding in relation to which that Act applied if subsection (3) of section 2 of that Act][F10 did not have effect or, in a case where approval was given under subsection (1) of that section], if that approval had not been given];

[F11 (aa) to a farm business tenancy;]

(b) to a tenancy created by a mining lease;

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12

[F13 [F14 (d) to a tenancy of premises licensed for the sale of intoxicating liquor for consumption on the premises, other than—

(i) premises which are structurally adapted to be used, and are bona fide used, for a business which comprises one or both of the following, namely, the reception of guests and travellers desiring to sleep on the premises and the carrying on of a restaurant, being a business a substantial proportion of which consists of transactions other than the sale of intoxicating liquor;

(ii) premises adapted to be used, and bona fide used, only for one or more of the following purposes, namely, for judicial or public administrative purposes, or as a theatre or place of public or private entertainment, or as public gardens or picture galleries, or for exhibitions, or for any similar purpose to which the holding of the licence is merely ancillary;

(iii) premises adapted to be used, and bona fide used, as refreshment rooms at a railway station.]]

(2) This Part of this Act does not apply to a tenancy granted by reason that the tenant was the holder of an office, appointment or employment from the grantor thereof and continuing only so long as the tenant holds the office, appointment or employment, or terminable by the grantor on the tenant’s ceasing to hold it, or coming to an end at a time fixed by reference to the time at which the tenant ceases to hold it:

Provided that this subsection shall not have effect in relation to a tenancy granted after the commencement of this Act unless the tenancy was granted by an instrument in writing which expressed the purpose for which the tenancy was granted.

[F15 (3) This Part of this Act does not apply to a tenancy granted for a term certain not exceeding six months unless—

(a) the tenancy contains provision for renewing the term or for extending it beyond six months from its beginning; or

(b) the tenant has been in occupation for a period which, together with any period during which any predecessor in the carrying on of the business carried on by the tenant was in occupation, exceeds twelve months.]

Textual Amendments

F8 Words added retrospectively by Agriculture Act 1958 (c. 71), Sch. 1 Pt. I para. 29

F9 Words in s. 43(1)(a) substituted (1.9.1995) by 1995 c. 8, ss. 40, 41(2), Sch. para. 10(a) (with s. 37)

F10 Words substituted by Agricultural Holdings Act 1986 (c. 5, SIF 2:3), ss. 99, 100, Sch. 13 para. 3, Sch. 14 para. 21

F11 S. 43(1)(aa) inserted (1.9.1995) by 1995 c. 8, ss. 40, 41(2), Sch. para. 10(b) (with s. 37)

F12 S. 43(1)(c) repealed by Housing Act 1980 (c. 51), Sch. 26

F13 S. 43(1) (d) repealed (in relation to any tenancy entered into on or after 11th July 1989) by Landlord and Tenant (Licensed Premises) Act 1990 (c. 39, SIF 75:1), ss. 1(1)(2), 2(2)(a)

F14 S. 43(1)(d) substituted by Finance Act 1959 (c. 58), Sch. 2 para. 5

F15 S. 43(3) substituted by virtue of Law of Property Act 1969 (c. 59), s. 15, Sch. 1 in relation to tenancies granted after 1.1.1970

[F16 43A Jurisdiction of county court to make declaration. E+W

Where the rateable value of the holding is such that the jurisdiction conferred on the court by any other provision of this Part of this Act is, by virtue of section 63 of this Act, exercisable by the county court, the county court shall have jurisdiction (but without prejudice to the jurisdiction of the High Court) to make any declaration as to any matter arising under this Part of this Act, whether or not any other relief is sought in the proceedings.]

Textual Amendments

F16 S. 43A inserted by Law of Property Act 1969 (c. 59), s. 13

Modifications etc. (not altering text)

C1 S. 43A amended by S.I. 1990/776, arts. 2(2), 4(1)(d)

[F17 44 Meaning of the landlord in Part II, and provisions as to mesne landlords, etc. E+W

(1) Subject to the next following subsection, in this Part of this Act the expression “the landlord”, in relation to a tenancy (in this section referred to as “the relevant tenancy”), means the person (whether or not he is the immediate landlord) who is the owner of that interest in the property comprised in the relevant tenancy which for the time being fulfils the following conditions, that is to say—

(a) that it is an interest in reversion expectant (whether immediately or not) on the termination of the relevant tenancy, and

(b) that it is either the fee simple or a tenancy which will not come to an end within fourteen months by effluxion of time and, if it is such a tenancy, that no notice has been given by virtue of which it will come to an end within fourteen months or any further time by which it may be continued under section 36(2) or section 64 of this Act,

and is not itself in reversion expectant (whether immediately or not) on an interest which fulfils those conditions.

(2) References in this Part of this Act to a notice to quit given by the landlord are references to a notice to quit given by the immediate landlord.

(3) The provisions of the Sixth Schedule to this Act shall have effect for the application of this Part of this Act to cases where the immediate landlord of the tenant is not the owner of the fee simple in respect of the holding.]

Textual Amendments

F17 S. 44 substituted by virtue of Law of Property Act 1969 (c. 59), s. 15, Sch. 1

45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F18 E+W

Textual Amendments

F18 Ss. 45, 68(1), Sch. 7 repealed by Statute Law (Repeals) Act 1974 (c. 22), Pt. XI

46 Interpretation of Part II. E+W

In this Part of this Act:—

• “business” has the meaning assigned to it by subsection (2) of section twenty-three of this Act;

• “current tenancy” has the meaning assigned to it by subsection (1) of section twenty-six of this Act;

• “date of termination” has the meaning assigned to it by subsection (1) of section twenty-five of this Act;

• subject to the provisions of section thirty-two of this Act, “the holding” has the meaning assigned to it by subsection (3) of section twenty-three of this Act;

• “mining lease” has the same meaning as in the M4 Landlord and Tenant Act 1927.

Marginal Citations

M4 1927 c. 36.