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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9651
Experience:  I have been practising for 30 years.
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I have a renewable lease with a pub company which is up for

Resolved Question:

I have a renewable lease with a pub company which is up for renewal 2020. I have had a meeting with them today as I wanted to extend my lease as I was intending to invest money to enhance the building. They informed me they have the right to take the building at the end of my lease if they intend to use it for their purpose. They will do this as they want to build houses on the land. I always thought I had rights to renew and they couldn't just take the building back. I have built a good business over 7 years of hard work and i'm going to lose it all. Can they really just take there building back off me at the end of my lease???
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.

Unfortunately, under the Landlord and Tenant Act 1954 section 30(1) Ground (f), and provided the landlord has owned the building for more than 5 years the landlord can oppose your application to renew on the basis that he intends to demolish or redevelop the property and that cannot be done with you still in the property.

He can also oppose your lease on Ground (g) if he intends to occupy the building once again, he must have owned it for more than 5 years.

The landlord has to be able to show a “firm and settled intention” which basically would mean that he would need plans and planning permission.

Here is quite a well laid out explanatory article.

http://www.ashfords.co.uk/media/405435/1954-Act-update-For-distribution-13227158_1-.pdf

The landlord however must pay you compensation under section 37 of the act.

If you have occupied the building for under 14 years, you get compensation of one years rateable value. For some reason that how it’s calculated.

If you have occupied the building for over 14 years, then you would get two years rateable value as compensation.

Can I clarify anything else for you?

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Best wishes.

FES

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Customer: replied 1 year ago.
It is a listed building so they would not be able to redevelop/demolish it and as a company wouldn't be able to occupy it. They said they would take it back to use as one of there managed houses, is this correct??