Security Of Tenure In Commercial And Residential Tenancies

Author:Ms Linda Conway
Profession:Dillon Eustace
 
FREE EXCERPT
  1. The Four Equities

    A commercial or residential tenant will look to the Landlord

    and Tenant (Amendment) Act 1980 (the "1980 Act") and

    the Landlord and Tenant (Amendment) Act 1994 in asserting his

    or her rights to renew an existing lease. These acts provide

    that in order to be entitled to a new tenancy beginning on the

    termination of the previous tenancy, a tenant must prove the

    existence of one of the four "equities".

  2. Business equity

    A tenant has a business equity if he or she is in occupation

    of a business premise used wholly or partly for the purpose of

    carrying on a business for a continuous period of five years

    immediately prior to service of notice of intention to claim

    relief.

  3. Long possession equity

    A tenant has a long possession equity if he or she has been

    in continuous occupation of business or residential premises

    for a period of 20 years immediately prior to service of notice

    of intention to claim relief.

  4. Improvements equity

    A tenant has an improvements equity if improvements have

    been made on either business or residential premises of which

    he or she is in occupation and not less than one-half of the

    letting value of the premises at the time is attributable to

    those improvements.

  5. Rent acts equity

    Sections 14 and 15 of the Landlord and Tenant (Amendment)

    Act 1980 give certain tenants of both commercial and

    residential premises, which were decontrolled by the Rent

    Restriction Acts 1960-1967, rights to a new tenancy.

    As can be seen, the requirements which residential tenants

    must meet under the acts if they are to claim the right to

    renew an existing tenancy, put them in a rather unenviable

    position as compared to that enjoyed by a commercial tenant,

    which must only prove five years continuous occupation.

  6. Grounds for Refusal to Grant New Tenancy

    The legislative provisions under which a tenant may lose

    his/her entitlement to a new tenancy are more likely to impact

    adversely on residential tenants. Section 17(2) of the 1980 Act

    outlines the grounds on which a landlord can refuse to grant a

    new tenancy to which the tenant would otherwise be entitled.

    These grounds include where the landlord intends or has agreed

    to pull down or reconstruct the buildings or any part of the

    buildings, or where the landlord requires vacant possession for

    the purpose of carrying out a scheme of development. The

    relevance of these provisions to a tenant of a private house as

    opposed to a tenant of a unit in a shopping centre is

    obvious.

  7. Housing...

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