We'll paint a scene for you: a multi-let building is ripe for redevelopment and the developer/landlord is working towards obtaining possession of the various parts and terminating any rights that will interfere with the development. It knows that one tenant has a lease, contracted out of the Landlord and Tenant Act 1954 (the 1954 Act) to ensure that it would expire on the proposed block date for the building without any statutory renewal rights. But the project experiences delays and the landlord wants to retain its income stream for as long as possible. It discusses a short-term tenancy, with flexibility for the landlord to terminate when it is ready. But those negotiations stall. The lease ends, the tenant remains in occupation paying the same rent as per the expired lease and discussions are not resumed with any vigour.
Fast forward a year and the landlord is ready to recover possession from said tenant. Are they a tenant at will? Are they a periodic tenant? And what does it matter?
Matthew Bonye, Frances Edwards and Shanna Davison from our Real Estate Disputes team explore the risks of implied tenancies in light of the latest UK Court judgment (Valley View v NHS Property Services Ltd [2022] EWHC 1393).
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
