Q. We have operated a social club since 1973 from premises which we lease from a local landlord at a peppercorn rent. The landlord has now verbally advised us that we have to get out with immediate effect as they say the building is in a poor condition. We don't agree. Can they do this?
A. A business trading from a particular location will come to be known in the locality over time, building up goodwill and reputation. This goodwill, together with the high costs that can be associated with fitting out and running commercial properties, is protected by the Landlord and Tenant Act 1954. The main effects of this Act are as follows:
- to provide the tenant with a right to renew its lease when it ends.
- to restrict the situations in which the landlord can terminate the lease (and the condition of the building is not something which of itself would allow a landlord terminate).
- to provide that the landlord must give the tenant proper written notice (a minimum of 6 months is required) and follow the correct procedure to end the lease.
Assuming that your business qualifies for protection under the act, and from what you say it appears to (the Act does apply where a peppercorn rent is paid) your landlord cannot terminate your lease in the way that you have described and it has not followed the correct notice procedure. We suggest that you seek immediate legal advice form an expert in order to protect the club's position as a matter of urgency.
Should you have a queries regarding a legal matter please contact Keith Swan of Patterson, Glenton & Stracey Solicitors by email at ks@pgslaw.co.uk or by telephone on 0808 231 7043. Patterson, Glenton & Stracey have provided legal advice to the people of South Tyneside for over 125 years. For details of their full range of services and to view previous Gazette articles please log on to www.pgslaw.co.uk.
