Legal Disputes

Can Landlords oppose the grant of a lease renewal relying upon the redevelopment works?

Where a new lease is sought by a Tenant whom is afforded the protection of the Landlord and Tenant Act 1954 (the LTA) what right does the Landlord have to oppose this where they plan to redevelop the property.

02 Aug 2021

Team name
Holly Minney

Holly Minney

The starting point when it comes to determining whether Landlords are able to oppose the granting of a new lease for redevelopment works is the LTA. Section 30(1)(f) of the LTA says that one of the grounds on which a landlord can oppose the grant of a new lease is:

‘that on the termination of the current tenancy the landlord intends to demolish or reconstruct the premises comprised in the holding or a substantial part of those premises or to carry out substantial work of construction on the holding or part thereof and that he could not reasonably do so without obtaining possession of the holding.’

This means a landlord who wishes to oppose the grant of a new lease may do so under the LTA so long as they can show that when the current lease comes to an end they intend to:

  • demolish or reconstruct the premises comprised in the holding or a substantial part of those premises; or
  • carry out substantial work of construction on the holding or part of it.

What constitutes substantial works?

‘Substantial’ means having a notable impact in terms of scale and time. The courts will assess the works as a whole and it will be a question of fact and degree as to whether the works proposed are substantial works of construction.

In the case of Marazzi v Global Grange, it was ruled that the installation of a new lift, new partition walls and bedroom facilities did not count as sufficient grounds to oppose a new lease. Conversely in the case of Morar v Chauhan, it was held that the addition of an extension for the premises to be used as a dry cleaning business and commercial laundry was a substantial work of construction.

M&P Commentary

Holly Minney, Head of Dispute Resolution, said:

“Landlords will need to be careful in their use of s30(1)(f) in opposing lease renewals for business tenants. They will need to make sure that the works proposed constitute ‘Substantial Works’ and fall within the LTA definition.

“Moreover, Landlords will need to be able to show that any proposed works will be undertaken regardless of whether the tenant applies for a new tenancy or not. Any intention to carry out the works must be unconditional.”

OUR CLIENTS SAY ABOUT US

Ranked highly in Romford and Brentwood for solicitor firms

Family
The service I received from Allison was exceptional. Always highly professional and informative.
Virginia
Wills
Mullis and Peake are very efficient, professional and friendly company to deal with. Excellent service throughout.
Brian
Employment
Excellent, swift service from Esther at Mullis & Peake. Showed clear expertise in her field & walked me through everything patiently & thoroughly.
Dan
Company and Commercial
I found the service provided was excellent from start to finish, with our requirements met in a timely manner throughout.
Gary
Wills
Staff very helpful and friendly. Trudi was easy to talk to and to understand the procedure.
Pamela
Dispute resolution
We contacted Martyn to deal with a sensitive Will dispute and we can’t thank him enough for his commitment and hard work.
Salena
Residential Property
Very prompt. Experienced. Expert. Friendly.
Trevor
Commercial Property
Excellent service and far quicker than previous negotiations using a different solicitor.
John
Family
At all times I was kept informed about the progress of the case and everything was completed in a timely fashion.
Melanie
Personal Injury
Martyn undertook and guided me through the lengthy process [of a personal injury case], and after much work, achieved a successful result.
Shirley

Related News insights

Charity & Fundraising, Mullis & Peake
London Legal Walk Completed for 2024
Legal, Wills & Power of Attorney
What Tax May I Have to Pay When I Die?
Movers & Shakers, Mullis & Peake
An Enjoyable Day at the Langtons Summer Concert
Charity & Fundraising, Mullis & Peake
M&P COTY – The Marillac Neurological Care Centre