MAKE YOUR FREE Landlords notice to exclude security of tenure

For use in England and Wales only.

Use this landlord's notice to exclude security of tenure when you do not want tenants to re-lease your property once their current lease is up. This landlord's notice to exclude security of tenure states that a tenant forfeits the automatic right to another lease when their existing lease comes to a natural end. This notice also covers when the contract is completed but not yet signed and when the tenant has not moved in yet. The legal information that must be covered when dealing with security of tenure is included in this document.

• for a lease of business premises
• where the tenant will not have an automatic right to another lease when the lease ends
• when the lease is agreed, ready for signature but not completed
• when the tenant is not yet in the property

• the required legal information that must be given to the tenant

Security of tenure gives a tenant the right to remain in the property, i.e. to renew their tenancy when the commercial lease comes to an end.

A notice excluding security of tenure is the formal notice by which a landlord decides to exclude the tenant's statutory right to a new commercial lease when the existing lease comes to an end.

If the landlord does not expressly exclude security of tenure, the tenant will have a statutory right to a new lease, and the landlord can only refuse to grant a new lease on certain strict grounds. Issuing a proper notice to exclude security of tenure ensures that the tenant waives their right to stay in the premises when the lease ends.

By forfeiting their right to security of tenure, the tenant:

• will have no right to stay in the premises when the lease ends 
• will need to leave the premises, unless the landlord chooses to offer another lease and
• will be unable to claim compensation for the loss of their business premises (unless the lease specifically gives such right)

The decision to exclude security of tenure should be made at the start of negotiations between the landlord and the tenant, when the tenant has not moved in yet.

The notice to exclude security of tenure should be issued at least 14 days before the start of the lease, ie when the lease is agreed and ready for signature, but not completed yet.

If the tenant receives the notice at least 14 days before committing to the lease, they'll need to sign a declaration stating that they have received the notice and that they accept its consequences, before signing the lease.

Ask a lawyer

• if you have multiple landlords or tenants
• for advice where the tenant needs urgent access to the property
• where there is a guarantor under the lease
• for property located in Scotland

This is governed by the law of England and Wales.