Security of Tenure Guidance for commercial landlords and tenants

Tenants of commercial premises typically have security of tenure, allowing them to stay after the lease ends and apply for a new lease, which the landlord can only oppose on certain grounds. However, the landlord and tenant can agree to exclude this right. It is important that a specific three-step procedure is undertaken to ensure that the tenant does not acquire security of tenure.

Additionally, if there is a guarantor, they may need to take a new lease if the tenant can't pay rent or becomes insolvent, effectively creating a lease agreement. It's crucial for the guarantor to be served with the appropriate notice to exclude security of tenure and respond accordingly.

The Property folder includes a Guidance Note on the three-step process, as well as the necessary Landlord Notices and Tenant/Guarantor declarations. You can access these documents here.