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.
Use this landlord's notice to exclude security of tenure
- 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
This landlord's notice to exclude security of tenure covers
- the required legal information that must be given to the tenant
What is a notice to exclude security of tenure?
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.
Why do I need a notice to exclude security of tenure?
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.
What are the consequences of excluding security of tenure?
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)
When should this notice be sent?
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.
What should the tenant do after receiving the notice?
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.
- 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.