Business leases – contracting out and security of tenure

Brighton & Hove City Council v Collinson and Collinson [2004] EWCA Civ 678

The Landlord and Tenant Act 1954 has long contained provisions for contracting out of the security of tenure provided by the Act. Historically the procedure for obtaining the pre-lease order has been cumbersome and sometimes time-consuming, and often occurs at a time when both landlord and tenant are keen for the tenant to be in occupation, trading and paying rent. Practical difficulties arise, especially when an order is obtained and then the parties agree to vary the terms of the draft lease. Is another order needed, or will the present one do? This case is a timely reminder of the attitude taken by the court on the contracting-out process. Although the recent amendments to the Landlord and Tenant Act 1954 have changed the process by which tenancies are contracted out, as from 1 June 2004, this case will continue to be key as an indicator of the policy to apply where the process may not have been adhered to strictly.