Part 5: Business tenancies: rent reviews and arrangements for new tenancies
Section 100 : Rent reviews and arrangements for new tenancies
Background
- Business tenancies in England and Wales are governed by several key pieces of legislation:
- Landlord and Tenant Act 1954 (the 1954 Act). This provides security of tenure for business tenants and establishes procedures for renewing or terminating commercial leases.
- Landlord and Tenant (Covenants) Act 1995. This governs the enforceability of lease covenants between landlords and tenants. It applies to all new leases granted on or after 1 January 1996.
- Landlord and Tenant Act 1987. This applies where there is an intermediate landlord between the tenant and the superior landlord. It provides tenants with rights to acquire the landlord’s interest in certain circumstances, particularly where the premises is being sold.
- None of these Acts provides substantial legislation to define the parameters for rent review provisions in commercial leases in England and Wales.
Effect
- This section inserts new section 54A into the 1954 Act, to allow the 1954 Act to now define the parameters for rent review provisions in commercial leases in England and Wales. New section 54A refers to new Schedules 7A and 7B, which are inserted into the 1954 Act by Schedule 37 to this Act.
