“I am the tenant of business premises which I have occupied for 14 years under a 1954 protected lease. The actual lease expired four years ago. The freehold of the premises was sold last year and the new landlord has served a hostile section 25 notice on me, stating that it does not want to grant me a new lease due to grounds of owner occupation (ground section 30 (1)(g)) and redevelopment (section 30 (1)(f)). Is there anything I can do?”
First, I am assuming that the notice served is valid! This is always the first thing to check.
Second, your landlord cannot rely on ground (g) as it hasn’t owned the premises for five years so that is your first point to challenge. However, the landlord can still rely on ground (f).
So, as your third point we now turn to what is required to prove ground (f). The important thing for the landlord to show is that it can prove its case at the trial of the preliminary issue. If you are aware or having any knowledge that the landlord may not have all in order (such as planning permission, funds, board minutes, etc. to evidence the proposed redevelopment), then I would suggest acting quickly and issuing and serving proceedings. This would try and push the preliminary issue to Court ASAP. Hopefully, if the landlord isn’t very organised, you could defeat its opposition at this trial.
Also consider whether the works are so substantial that you have to move out. Could you perhaps remain in situ? If so, you can oppose the redevelopment grounds on this basis.
The chances are, if you are successful and awarded a new lease, it would probably come with a redevelopment break clause.
If the landlord is prepared and succeeds at trial then unfortunately you won’t be granted a new lease. However, due to your length of occupation being over 14 years, you will be entitled to statutory compensation at twice the rateable value. Rateable value can be found here.
