LTA 1956 Section 25 and LTA1927

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ali_g12

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Jan 30, 2011
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  • #1
    My lease is approaching it's end and I'm anticipating a section 25 notice from the landlord, most likely with Ground (g)—landlord’s intention to occupy the premises for their own business or as their residence. It's very likely they will continue with the running of my business of 16 years in it's current form so I'm not best pleased to be shoved out of the door in this fashion. I was always aware of the compensation provisions of LTA 1956 but in my reading of the MVL Properties (2017) Ltd v The Leadmill Ltd [2025] also learned of the LTA 1927 the latter of which seems to be designed to offer some sort of compensation for this type of scenario.

    The problem seems to be that most people aren't aware of it and therefore don't serve official notices for improvements making it difficult to prove the value of the improvements. In my case I have had multiple landlords and although improvements at the beginning of this current lease period are documented and approved by the landlord (although not in an official notice) improvements made 15 years ago at the beginning with the previous freeholder are not well documented at all.

    The nature of the business is that the fitout IS the business and gives the building, which I took on in shell condition, it's rental value.

    Any experience for the forum members would be gratefully received. I am anticipating the need for a specialist legal advisor for this so would also welcome some suggestions.
     
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    Michael Loveridge

    Free Member
    Aug 2, 2013
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  • #4
    Sorry to be rather late to the party, as I've been away for the last month or so, and it may be that you've now obtained specialist advice.

    But if not, it's important to realise that your landlord can't just say that he wants the property for himself - he has to be able to prove that it's a definite decision and that he's taken steps to deal with it.

    As you say he intends to run your business that may not be enough to justify granting him possession.

    I suppose the key question is whether or not you want to remain there - if you're happy to vacate then it becomes a purely academic point. Also, though I assume it doesn't apply in your case, you should be aware that he can't serve a ground (g) notice if he's bought the property within the last five years.
     
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    DontAsk

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    Jan 7, 2015
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  • #5
    ali_g12 said:
    landlord’s intention to occupy the premises for their own business or as their residence. It's very likely they will continue with the running of my business of 16 years in it's current form
    Click to expand...

    You mean they are going to setup their own similar business in the premises. They can't simply take your business along with the lease. They can't use the same name and pass themselves off as you, assuming you carry on with the business in alternate premises.
     
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    Paul Kelly ICHYB

    Paul Kelly ICHYB

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    • Jan 21, 2008
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  • #6
    @ali_g12 Any updates?

    If you strip the business before leaving (many leases require return to possession status) what is left for them to run?

    What type of business do you have?
     
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    louis292

    Free Member
    Feb 3, 2026
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  • #7
    ali_g12 said:
    My lease is approaching it's end and I'm anticipating a section 25 notice from the landlord, most likely with Ground (g)—landlord’s intention to occupy the premises for their own business or as their residence. It's very likely they will continue with the running of my business of 16 years in it's current form so I'm not best pleased to be shoved out of the door in this fashion. I was always aware of the compensation provisions of LTA 1956 but in my reading of the MVL Properties (2017) Ltd v The Leadmill Ltd [2025] also learned of the LTA 1927 the latter of which seems to be designed to offer some sort of compensation for this type of scenario.

    The problem seems to be that most people aren't aware of it and therefore don't serve official notices for improvements making it difficult to prove the value of the improvements. In my case I have had multiple landlords and although improvements at the beginning of this current lease period are documented and approved by the landlord (although not in an official notice) improvements made 15 years ago at the beginning with the previous freeholder are not well documented at all.

    The nature of the business is that the fitout IS the business and gives the building, which I took on in shell condition, it's rental value.

    Any experience for the forum members would be gratefully received. I am anticipating the need for a specialist legal advisor for this so would also welcome some suggestions.
    Click to expand...
    With 16 years of business and undocumented improvements on the line, you definitely need a specialist property surveyor and a solicitor immediately. Don't rely on forum advice for Ground G.
     
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