Business Tenancy

Business Tenancy in United Kingdom

Definition of Business Tenancy

In accordance with the work A Dictionary of Law, this is a description of Business Tenancy : A *tenancy of premises that are occupied for the purposes of a trade, profession, or employment. Business tenants have special statutory protection.

If the landlord serves a notice to quit, the tenant can usually apply to the courts for a new tenancy. If the landlord wishes to oppose the grant of a new tenancy he must show that he has statutory grounds, which may include breaches of the tenant’s obligations under the tenancy agreement or the provision of suitable alternative accommodation by the landlord. Otherwise the court will grant a new tenancy on whatever terms the parties agree or, if they cannot agree, on whatever terms the court considers reasonable. When the tenancy ends, the tenant may claim compensation for any improvements he has made.

Under the Landlord and Tenant (Covenants) Act 1995, in force from 1 January 1996, when business tenancies are assigned the new tenant generally takes over the covenants (or promises and warranties) of the first tenant in the lease except when otherwise agreed. Previously the old tenant was always liable, even after *assignment, if a subsequent tenant defaulted on the lease.