Re-development Ground, Section 25 Notice – My landlord has served notice citing the re-development ground as the reason for ending my commercial tenancy, what should I do?
Under the provisions in the Landlord and Tenant Act 1954 one of the limited number of grounds under which a landlord can re-claim possession of a commercial property is the re-development ground.
Once a valid Section 25 Notice has been served there are strict time limits under which action by both parties must be taken – first check that the notice is valid and take appropriate action within the time limits. It’s advisable to get professional help in this situation from a Chartered Surveyor.
The onus is on the landlord to show in court that he has done all preliminary work (plans and permissions etc) and fully intends to go through with the re-development.
He also must show that he cannot reasonably do the development (demolish and re-build or substantial structural work) without obtaining possession.
If the tenant intends to oppose he must apply promptly to the court for a new tenancy and either:
(1) show how reasonable access can be allowed for the works to be completed, or
(2) be willing to occupy another section of the premises.
Should the court grant the landlord possession, then the tenant may be entitled to compensation, which is worked out on a fixed scale. Higher compensation is due if the landlord subsequently fails to do the development.
By Tom Entwistle,
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©LandlordZONE All Rights Reserved – never rely totally on these general guidelines which apply primarily to England and Wales. They are not definitive statements of the law. Before taking action or not, always do your own research and/or seek professional advice with the full facts of your case and all documents to hand.