Tribunal route changes for some older lease disputes

The Ministry of Housing, Communities and Local Government has updated its guidance on renewing and ending business leases to reflect the change. The July update does not represent a wider reform of commercial lease law. Its principal purpose is to explain the new tribunal arrangements and how they affect the existing prescribed forms.

Which agreements are affected?

The new tribunal route applies to existing agreements involving telecommunications equipment on land where:

• the agreement was entered into before the current Electronic Communications Code took effect on 28 December 2017
• its main purpose is to grant rights under the Code.

Relevant proceedings will be allocated to the Property Chamber of the First-tier Tribunal or the Lands Chamber of the Upper Tribunal.

For agreements covered by the change, references to ‘the court’ in forms prescribed under Part 2 of the Landlord and Tenant Act 1954 should now be read as references to the tribunal with jurisdiction over the dispute.

Agents dealing with older telecommunications agreements should therefore check whether the new arrangements apply before advising parties about notices or the next steps in a dispute.  Specialist legal advice may be needed for specific agreements and proceedings that are affected by the change.

Wider guidance on business tenancies

The UK Government guide provides a broader overview of how the Landlord and Tenant Act 1954 applies when landlords and tenants want to renew or end a business tenancy. It covers security of tenure, grounds for opposing renewal, statutory notices and applications for a new tenancy.

It also explains ‘contracting out’ where parties to a new lease can agree that the tenant will not have the statutory right to renew. As this removes an important protection, tenants should obtain professional advice before entering such an agreement.