New Leasehold Law and Traders
Page 54
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THE Leasehold Property (Temporary Provisions) Act, 1951, which came into force on June 24, confers protection on persons who carry on ,a retail trade or business, in cases where the premises are held under a tenancy agreement which expires on "the 24th" or at any time between that date and June 24, 1953.
The fact that some other parts of the premises may be used for other purposes than those of a retail trader will not prevent the tenant from claiming the benefit of the Act with regard to such portion of the unit, as it were, which is being used for the purpose of a retail trade or business.
Renewal of Tenancy
In such cases the tenant may Income entitled to a renewal of the tenancy if he makes an application to the County Court for that purpose. The Act imposes time limits within which the application is to be made, and if those time limits be not observed, the benefit of the Act cannot be claimed.
When the tenancy expires automatically by the passage of time, the application to the Court must be made not later than one month before the tenancy is due to expire; where, on the other hand, the tenancy, is determined by a notice to quit served bY the land
n20 lord, the application must be made within one month after the notice.
To meet the .case of tenancies expiringwithin the first month of the commencement of the Act, and in which the time limits would otherwise have to be cut down, the time for making an application is extended toluly 24, 1951. Thus, say that a tenancy expired on July 1, 1951, obviously the tenant could not have had one month before July 1, 1951, in which to make his application, as the Act came into operation only on June 24, 1951, a week before the tenancy was due to come to an end. Accordingly. the tenant would have until July 24. 1951, within which to make his application.
The Court has a discretion in making an Order for the extension of the tenancy. No extension can exceed one year on any application, but successive applications may be made for further extensions if necessary, so, however, that in no circumstances may the tenancy be extended beyond June 24. 1953.
The Court will determine the rent and the terms and conditions of the extended tenancy. and these may not be the same as they were under the tenancy that has expired. The rent which would be payable would be the ordinary market rental value, and factors such as the scarcity of accom
modation and any special attraction that the premises may have for any special class of person, such as multiple stores, .would be..taken,into account.
The tenant, however, will not be granted any extension if he has been guilty of any serious breaches of covenant, or if suitable alternative accommodation be available, or if the demolition or reconstruction of the premises be contemplated, or if greater hardship would be caused by extending the tenancy than by refusing an extension.
Final Decision The determination of the County Court will be final, unless the Court grants leave to appeal against its determination. In that event the Court would fix the rent and the terms and conditions on which the tenant is to hold the premises in the interval, pending the final determination of the appeal.
Tenants should remember that the rights conferred by this Act do not affect their right in a proper case to claim a new lease or compensation for loss of goodwill under the Landlord and Tenant Act, 1927, and those who are entitled to make claims under the 1927 Act should consider their position carefully when contemplating any action under the 1951 Act.