The Landlord and Tenant (Amendment) Act, 1980 (the "1980
Act"), as amended by the Landlord and Tenant (Amendment) Act,
1994 (the "1994 Act") governs the relationship between
landlords and tenants of business premises and in particular,
provides for a number of statutory reliefs for tenants, notably the
right of a tenant to renew his or her lease. The right to a new
tenancy, and in particular the right to a new business tenancy, has
been amended by Section 47 of The Civil Law (Miscellaneous
Provisions) Act, 2008 (the "2008 Act") which enables
landlords and tenants of business premises to agree that the tenant
shall have the option to opt out of the tenant's statutory
entitlement to a renewal of the lease. This article outlines the
evolution of the laws governing a commercial tenant's rights of
renewal and identifies the changes made by Section 47 of the 2008
(1) The Landlord and Tenant (Amendment) Act 1980 (the
Section 16 of the 1980 Act provides that where Part II of the
1980 Act applies to a tenancy, the tenant shall be entitled to a
new tenancy, commencing on the termination of the previous one,
subject to proving any one of the following
Business equity under Section 13(1) (a), as amended by Section
3 of the 1994 Act - if the tenant has continuously occupied the
premises for 5 years.
Long possession equity under Section 13(1) (b) – the
tenant is required to be twenty years in possession.
Improvements equity under Section 13(1) (c) – if the
tenant is entitled to compensation for improvements and the said
improvements amount to half or more than half of the letting value
of the tenement when the notice of intention to claim relief is
served, then the tenant has an improvements equity.
If a new tenancy is established based on business equity, the
new tenancy will be fixed at twenty years or such lesser term as
the tenant may nominate. It will not however be fixed for a period
of less than five years without the landlord's agreement.
If a new tenancy is based on long possession equity or
improvements equity, the term of the new tenancy will be
thirty-five years or such lesser term as the tenant may nominate in
accordance with Section 23(2) of the 1980 Act, as amended by
Section 5 of the 1994 Act. The new tenancy will commence on the
termination of the previous tenancy.
Contracting out of one's rights under the 1980 Act is not
permitted and Section 85 provides that any provision in a...