Health Real Estate Tip of the Week: Avoid a 1954 Act trap - DAC Beachcroft

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Health Real Estate Tip of the Week: Avoid a 1954 Act trap

Published 16 octubre 2017

It is not unusual for a landlord to try to push for improved terms on a lease renewal. However, where you are negotiating a renewal of a lease which is protected pursuant to the Landlord and Tenant Act 1954 (1954 Act), remember: the House of Lords has held that 1954 Act lease renewals should be on the same terms as the old lease (save for reasonable modernisation). If the renewal goes to Court, the Court should not generally use its discretion to change terms and should only do so in circumstances where it is fair and reasonable to do so.

Two other points you should note when you are granting leases:

  1. When granting an underlease, the terms of the headlease should be considered so that you do not inadvertently agree to grant a sublease which would put you in breach of the terms of your head-lease; and
  2. NHS bodies should not generally grant 1954 Act protected leases as Health Building Note 00-08 recommends they maintain flexibility of their estates for potential future NHS use.

Authors

Madeline Ball

Madeline Ball

London - Walbrook

+44 (0) 20 7894 6286

Stan Campbell

Stan Campbell

Bristol

+44 (0) 117 918 2179

Andrea Proudlock

Andrea Proudlock

Newcastle

+44 (0)191 404 4098

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