SECTION 25 NOTICE – What is it?
A Section 25 Notice is a provision of the Landlord and Tenant Act 1954 entitling a Landlord to bring to an end a commercial tenancy.
A Section 25 Notice is used to cover two events -
- To end a current tenancy and propose terms for its renewal.
- The Landlord wishes to oppose the grant of a new Tenancy and gain possession of the property.
Landlords – You need to get it right!
When to Serve a Notice?
A Section 25 Notice has to be served with no less than six months, and no more than twelve months notice, such notice cannot bring a tenancy to an end before the end of the contractual term specified in the Lease.
If the Landlord wishes to renew the Lease then terms of a new tenancy have to be stated in the Notice.
If the Landlord wishes to gain possession of the property for, say, redevelopment or use for its own business, then these grounds and those only permitted for possession must be capable of being proven.
Landlords, it’s important to remember that just because a lease comes to an end, it doesn’t if it’s a Landlord and Tenant Act 1954 tenancy.
You have received a Section 25 Notice, what do you do?
Firstly, you need to establish whether the Section 25 Notice is for the purpose of offering new terms to remain at the premises or whether it is a notice requiring possession.
It’s important, upon receipt, to seek advice either from a firm of Chartered Surveyors such as ourselves or your Solicitor.
What happens if I do nothing?
If a Section 25 Notice is served offering new terms and the Tenant does nothing in reply to the Notice, then at the end of the Notice period the terms stated in the Notice will become applicable.
If a Section 25 Notice is served with the intention of the Landlord to gain possession, it is imperative that the tenant investigates the validity of the Notice. Do nothing and you will potentially lose your rights under the Landlord and Tenant Act 1954 and possession of the property.
For further information on service or receipt of Notices, if you are either a Landlord or Tenant, please contact Andrew Price at Kingston CPC – 01543 414300 or firstname.lastname@example.org .