When you enter a commercial lease with a commercial tenant, you need to make various decisions about the details of the commercial lease for the business premises. A commercial lease agreement will usually contain these details. For example, you must consider the rental amount, the lease term and other details such as any break clause. One important consideration is whether you wish to offer a protected or contracted-out lease. If you decide to provide the latter, there is a procedure you must abide by, or the lease will remain protected. This article will explain the procedure for a commercial landlord to contract out of the security of tenure in a commercial lease.<\/p>\n\n\n\n
A commercial lease usually automatically has security of tenure. This means it is a protected lease. The details about the security of tenure<\/a> are within the Landlord and Tenant\u2019s Act 1954,<\/em> which provides that a commercial tenant has the automatic legal right to renew their tenancy at the lease end date. <\/p>\n\n\n\n As a commercial landlord, you can only refuse if you can cite one of the legal reasonable grounds for doing so.<\/p>\n\n\n\n A contracted-out lease is a lease that contracts out of the provisions in the Landlord and Tenant Act 1954<\/em> that provide for security of tenure. Therefore, the commercial lease does not offer your commercial tenant the legal automatic right of renewal after the lease term ends. Instead, your tenant has no right to remain in your property. <\/p>\n\n\n\n They also have no right to seek compensation or ask a court to fix the rental of any new lease you may agree to<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nContracted-Out Lease <\/h2>\n\n\n\n