Legal advice: Tenancy is simplified

Renewing leases has been made an easier and less expensive procedure with potential pitfalls removed.

By Keith Miller, of thePublican.com's team of legal experts from London solicitors Joelson Wilson.​

Here we go again, yet more new legislation for licensees to get to grips with. New rules are now in force for renewing business tenancies, such as pub leases. Even though you will not need to know your way around them yourself, you may want to know how the procedure is being made easier.

Hopefully this means less expense will be involved in obtaining your new lease.

One object of the changes is to do away with the delays which occurred under the old system. Some of the innovations in procedure are:

• When a landlord serves a termination notice, it must propose terms for the new lease
• Either party can apply to the court for the new lease to be granted, not just the tenant. Therefore, if the landlord applies it can sort out whether the tenant is genuinely seeking a new lease - on the logic that if the tenant wasn't, he would be unlikely to incur the costs of a court action.

Old traps eliminated​

Matters can be brought to a head by the landlord (provided it opposed a new lease) asking the court to terminate the present lease at the end of its term. If that is refused, the court will immediately order the new lease and settle its provisions (rent, length of term, etc).

The parties can agree in writing to extend the time for settling a court application. Prior to this, the court could insist on the hearing going ahead. The tenant can withdraw from the proceedings at any time.

The old traps for tenants have gone. They used to lose out if they failed to serve a counter-notice within two months after the landlord's notice, or failed to apply to the court within four months. Now the last date for applying is the date the present lease ends.

Other reforms​

Legal changes will make it easier for pub tenants renewing business tenancies in future. This will be good news for tenants taking over the lease of pubs such as the White Bear, Shipston-on-Stour, Warwickhire (pictured above), when they come to be negotiated.

Situated in a prime tourist spot 10 miles south of Stratford Upon Avon, the attractive Georgian building overlooks the town square.

For further information on the sale, contact Andrew J Whelan at Fleurets Birmingham office on 0121 236 5252 or email andrew.whelan@fleurets.com.