6 July 2021

Post-Pandemic Business Tenancy Renewal Terms

This is yet another recent County Court Judgment as to renewal of a business tenancy. It seems tenants are now keen to take renewals to Trial to not only seek lower rents but better terms generally.

This case relates to Poundland’s premises at 18-22 King St, Twickenham where the parties agreed a new rent of £130,000 per annum for a new 5 year lease without a break clause shortly before the Trial. But they did not agree all the other terms of the lease as Poundland wanted to change some of the historic terms in light of the pandemic and generally.

The case was heard by a District Judge whose findings will not be binding but they are interesting as set out below.

Overriding principle

It is not the purpose of the Landlord and Tenant Act 1954 to ordinarily permit amendments to leases on renewal which would result in a change to the respective risks, obligations and benefits carried and enjoyed, nor to insulate the tenant against the commercial and trading risks they may face, in a way that would either prejudice the landlord or interfere with their long term interests.

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Anna is a Senior Associate and Jonathan a Partner, both working in our Property Litigation team.

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