Skip to main content

Insight article

January 14, 2015

Business lease applications

Ensuring both joint tenants apply for a business lease renewal to avoid losing security of tenure

In Lie v Mohile, the Court of Appeal held that an application for a new business tenancy made by one of two business partners was not valid.

This upholds the established case law of Jacobs v Chaudhuri in that all joint tenants must join in an application under the Landlord and Tenant Act 1954 unless the tenants can take advantage of one of the statutory exceptions.

Section 41A provides an exception for partnerships where not all of the joint tenants continue to use the demised premises for the purposes of the partnership business, namely:

  • The lease must be vested in at least two joint tenants;
  • The demise must include property occupied for the purposes of the business;
  • The business must, at some time during the tenancy, have been carried on in partnership by all of the joint tenants;
  • at least one of the joint tenants must currently carry out the business, either alone or in partnership with others and occupy no part of the property, under the tenancy, for the purposes of the business carried on by the other joint tenants or tenants;
  • It is very important, not only when a protected lease is ending but at the start of a business, that the legal structure is considered in view of any application. Doctors and dentists, in particular, often practice from shared premises, and there may be circumstances where vesting property interests in a special purpose vehicle (SPV), such as a limited company or limited liability partnership, may help avoid disputes in the future. It is sensible to take legal advice on a corporate and property level and to consider any tax implications.

Speak to property litigator Laura St-Gallay today about your business lease application.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Stay in touch

Subscribe to our newsletter

Stay in touch

By completing your details and submitting this form you confirm you are happy for us to send you marketing communications and that you agree to our Website Privacy Policy and Legal Notice and to us using Mailchimp to process your data.


Sending

News/Insight

  • An Introduction to Private Client Law
    Lasting Powers of Attorney


    Read more
  • Understanding financial provisions on divorce
    Divorce can be emotionally challenging, and navigating the financial aspects can add to the challenge.


    Read more
  • Digital divorce: the highs and lows
    According to figures from the Ministry of Justice, digital divorce applications rose by 20% in the year following the introduction of no-fault divorce (2022 to 2023).


    Read more
  • Agile AI Regulation: Moving with the times
    Artificial intelligence (AI) is becoming more prominent everywhere we look in our everyday lives. The critical questions for those trying to make AI safer with regulations are: how broad, how soon and how strict should they be?


    Read more
  • Inheritance disputes on the rise
    Inheritance challenges and disputed wills are soaring, but not just the mega-wealthy are fuelling the action.


    Read more

What they say...

  • Peter W, May 2024
    “Patrick Simpson provided first class support when I experienced redundancy. I couldn’t have asked for more. Demonstrating his superior knowledge and experience and explaining everything to me with crystal clarity. Efficient and timely with a

  • Mr Rose, April 2024
    “The firm acted for me in an employment matter where the issues were as much practical as legal. The advice given was thorough and clear, marrying black letter law to the practicalities. This helped me greatly in achieving a satisfactory outcom

  • Brian Higgins, April 2024
    “Patrick was excellent, responded quickly and gave concise, clear advice. He made the process very straightforward.” Employment

  • J. Cassell, April 2024
    “We were advised by Charlotte Barbaroussis. Her dealings were very professional. She was pleasant easy to deal with and very approachable. Her help during the process of setting up my wife’s and my will made the task a lot easier.”

  • David Delicata, April 2024
    “I dealt with Pippa Marshall for my divorce, who was recommended to me by a friend who worked with Pippa for his complicated divorce. She was very professional and very informative. Pippa took her time to go through every aspect, and I really f

Read more
Send this to a friend