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Lease Renewal Refusal - Redevelopment

Updated: Jul 12, 2022

2020/NO.24 - Lease renewal approaching and you receive what is known as a “hostile” section 25 Notice under The Landlord and Tenant Act 1954 on the grounds of section 30(1) (f). This confirms your landlord’s intention to either redevelop or substantially renovate/restructure your property and cannot reasonably do so with you in occupation and needs to recover possession

That intention must be settled, firm and unconditional due to the ruling in a Supreme Court case last year being…

’S. Frances Ltd-v-Cavendish Hotel (London) Ltd [20018] UKSC 62 [2019] EGLR 4' .

Now universally known as the “Frances case”. The core issue was whether the landlord would intend to carry out the same work if the tenant had left of his own free will.

We recognise that one of the hidden uses of ground (f) is to clear out a Tenant when the underlying purpose is to have the option of selling the freehold with vacant possession. This is a particularly delicate tactic if say there was little if any income being received now and in the medium future as a result of the COVID-19 influence.

The Government stay on issuing forfeiture procedures or Statutory Demands also has a subtle link here. If there is any doubt that the landlord cannot swiftly put in place the required ground (f) either from not having the necessary full Planning Permission or a lack of proven funds to carry out the scheme then full detail must be requested as quickly as possible. You are quite entitled to request and be provided with that detail, so always ask if faced with a hostile s25 notice.


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