Possession Of Commercial Property

[ellen]

A lease on a property is up for renewal quite soon. I understand that we could take possession of the property, with suitable compensation to the current tenants if we wish to use the property for our own use. I have also been told that we may only do this if we have owned the property for at least 5 years.
Is this correct?

[Editor]

Ellen, The tenant has the right to apply to the court for a new tenancy following the termination of the current tenancy eg by a s25 notice. The landlord must state on what grounds he intends to oppose the tenancy in the notice - eg ground g - where the landlord intends to occupy the building.
Yes, there is a requirement to have owned the property for 5 years prior to the termination of the tenancy - this prevents others speculatively buying properties to end the lease and take over themselves.
If the tenant opposes, the landlord would need to put together a good "cast iron" case and follow through - ie, if the whole scheme subsequently turned out to be a sham, additional compensation would be due to the tenant.

[ellen]

Thanks for your reply - makes sense so as to protect tenants from incoming purchasers. What is the situation if you wish to redevelop the site? The property was inherited which is the reason for the 'less than 5 years ownership'.

[Tax Accountant]

Thanks for your reply - makes sense so as to protect tenants from incoming purchasers. What is the situation if you wish to redevelop the site? The property was inherited which is the reason for the 'less than 5 years ownership'.

But you have still owned the property for less than 5 years.

ramnik