Breaking Bad - DAC Beachcroft

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Breaking Bad

Published 15 December 2014

If a landlord wishes to exercise a contractual break option in a lease which is protected by the security of tenure provisions in the Landlord and Tenant Act 1954 ("LTA 1954"), the landlord must always remember to serve a LTA 1954 Section 25 Notice stating the landlord's grounds of opposition and specifying the break date. This will bring to an end both the tenant's contractual lease term and the statutory tenancy under the LTA 1954.

If the landlord serves a break notice alone, this will bring to an end the contractual lease term, but it will not end the statutory tenancy under the LTA 1954. In such circumstances the tenant is entitled to remain in occupation of the premises after the break date pursuant to the statutory tenancy under the LTA 1954. The tenant could also seek a new lease under section 26 of the LTA 1954.

Due to the risks involved it is important that legal advice is sought if a landlord wishes to exercise any kind of break provision in a lease.

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