Commercial Landlords beware

For the first time in six years the rateable values for commercial property is set to change. The VOA has released the future rateable values taking effect from 1 April 2023. This will have a direct effect on any statutory compensation payable to tenants on a termination of their lease under the Landlord and Tenant Act 1954.

In short, this means landlords should consider serving any hostile section 25 notices now before the rateable values change.

The 1954 Act provides that, if the landlord terminates a protected lease relying on one of the no-fault grounds, statutory compensation will be payable to the tenant. This is usually one times the rateable value unless the tenant has been in occupation for more than 14 years.

For advice and assistance with any lease termination or lease renewal matters please do not hesitate to contact Sabina Haag who is a Partner in our Dispute Resolution Team specialising in property disputes.

If you would like some further information about the contents of this article, contact us today on 01502 532300 or email us using the 'make an enquiry' form.

This is not legal advice; it is intended to provide information of general interest about current legal issues.