Commercial leasehold

A review of aspects of the law relating to commercial leasehold.

Background (Back to top)

Our project, Business Tenancies: the Right to Renew, is addressing one aspect of commercial leasehold law, but there are other issues in the commercial leasehold sphere which this project will review.

First, we have heard that two aspects of the law are causing significant problems in practice for commercial leasehold transactions, creating barriers for businesses, preventing commercially sound transactions and imposing needless bureaucracy.

Secondly, we have heard about the law governing the maintenance, repair and upgrading of leased commercial buildings. There is concern that the law in this area is causing confusion and unfairness, and that it is has not kept pace with modern priorities (such as the need to improve the environmental sustainability of buildings or to reinvigorate the high street).

This project forms part of the Law Commission’s 14th Programme of Law Reform.

Project (Back to top)

This project will comprise two sub-projects.

The first sub-project will be a focused review of two aspects of the law relating to commercial leasehold transactions:

(1) issues with the Landlord and Tenant (Covenants) Act 1995; and

(2) rights of first refusal under the Landlord and Tenant Act 1987 (in so far as the law relates to commercial premises).

The second sub-project will be a scoping project, focusing on the law governing the maintenance, repair and upgrading of leased commercial buildings. As part of this scoping work, we will consider the law relating to dilapidations, service charges, and the interaction between environmental frameworks and commercial leasehold law. Scoping work will enable us to understand the problems that exist and to test which might have a law reform solution.

Further detail about the project will be included on this webpage as soon as possible.