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On 1st December 2003 the Government approved The Regulatory Reform (Business Tenancies) (England and Wales) Order 2003. It will come into force on 1st June 2004.
Some notable changes are as follows:-
1) In the case of a continuation tenancy, the landlord or the tenant will be able to apply to Court to make an order for a new tenancy under certain circumstances. Currently, only the tenant can apply.
2) Either party will be able to apply for an interim rent. Currently, only the landlord can make an application for an interim rent.
3) If the landlord is prepared to grant a new tenancy, his Section 25 Notice will have to include specific proposals for the new tenancy, such as the rent, the property itself and other lease terms.
4) In the case of a continuation tenancy, the tenant will be able to bring the tenancy to an end by giving three months notice to expire on any day. Currently, a notice under Section 27 must bring the tenancy to an end on a quarter day.
5) There will no longer be a strict requirement for the tenant to respond to the landlord’s Section 25 Notice within 2 months.
6) The parties will be free to contract out of the provisions of Sections 24 to 28 of the 1954 Act, and also to agree terms for the surrender of the tenancy in advance. In each case, the landlord must serve notice upon the tenant.
The information in this digest is not intended to be a complete coverage of the subject. Professional advice should always be taken on the application of the law in any particular case.
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