Declarations and notices to contract out of LTA 1954
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This is the set of declarations and notices that you need if contracting out of the security of tenure provisions under the Landlord and Tenant Act 1954 (“LTA 1954”) when putting in place:
- a new lease;
- sub-lease; or
- authorised guarantee agreement (or “AGA”) on assigning the remaining term of a lease. (This is only where that the parties to the lease have already contracted out from the LTA 1954.)
They are in the statutory form for the declarations and notices, so they should not be changed. Therefore, just complete them as appropriate.
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They are free of charge. If you download our lease, sub-lease or authorised guarantee agreement, they come with those templates as a free add-on.
Contracting out of the “security of tenure” provisions of the 1954 Act
An agreement disapplying the security of tenure provisions won’t be valid unless the correct procedure is followed. This is from the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 (the “RRO 2003”). The RRO 2003 allows contracting out after following one of 2 procedures:
- a “statutory declaration procedure” requires that the landlord serves a “warning notice” on the proposed tenant. However, you can do this less than 14 days before the parties sign and exchange the agreement. The tenant must then complete a statutory declaration and send it to the landlord, again doing this before the agreement is signed and exchanged.
- the “simple declaration procedure” or “advance notice procedure” requires the landlord to serve a warning notice at least 14 days before the parties sign and exchange the lease (or agreement for lease). The tenant must then complete a simple declaration and send it to the landlord, again doing this before the lease (or agreement for lease) is signed and exchanged.
Contracting out of the security of tenure provisions will only be valid if you follow one of these procedures correctly.
When to Contract out of Security of Tenure
If you want to contract out successfully, you must follow this procedure before the agreement is signed. More precisely, you do this before the tenant is contractually bound to enter into the agreement. So you must follow the right process in full, before any of the following happen:
- before completion of a lease or completion of the renewal of a lease.
- before completion of an agreement for lease.
- a tenant’s going into occupation of the property before completing on the lease.
- on assigning a lease to another tenant, before completion of a guarantee or authorised guarantee agreement (AGA), if the guarantee or AGA allow the landlord to require the guarantor to take a new lease of the property in the future, e.g. if the new tenant defaults on the lease.
- where a lease containing an option for the tenant to renew the lease has been entered into, you also need to contract out again before completion of the tenant’s option to renew. (This applies only if you had properly contracted out of the original lease.)
Form of words for the Declarations and Notices
As noted above, there are 2 alternative procedures to follow: (1) the statutory declaration or (2) the simple declaration. Use the appropriate one of the 2 declarations and notices in this downloadable template. Do not alter the wording of those statutory declarations and notices, other than by completing them as appropriate.
If you need the full batch of documents for the assignment of a lease, we offer 20% off when you buy them all at the same time using our discount package – click here for more details.
When you need the full batch of documents for the sub-letting of a lease, we offer 20% off when you buy them all at the same time using our discount package – click here for more details.
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