Contracting Leases out of the 1954 Act – A Practical Approach to the Six Question Marks [2023]

Contracting-out of the Landlord and Tenant Act 1954 may be a commonplace of commercial property practice, but it can be a crucial part of a deal, and getting it wrong can be a very costly mistake. It can mean a lost development opportunity, or a tenant who is in a ransom position, and can demand a large premium for relocating. The procedure is supposed to be a robust and simple one, which can be operated quickly, and even without the assistance of lawyers. Often it is, but even before it came into force a number of potential problems had been identified. Caselaw has clarified some of the issues, but others remain, and this session identifies the six important ones, and discusses practical approaches to them.

Below are a number of matters that will be covered:

• • How the term definition in the lease can invalidate contracting-out
  • When should the warning notice be served, and should a draft lease be attached?
  • How far need you go in checking the authority of the maker of the statutory declaration?
  • Problems in the function and form of the declaration
  • Contracting-out and agreements for lease
  • Surrender agreements for contracted-out leases