Overview

It is common for landlords to allow tenants to remain in occupation when a lease expires and whilst the parties are negotiating new terms. If the parties intend the tenant to take a new lease, there seems no point in asking the tenant to vacate until the documentation is agreed.
However, negotiations can drag for months, even for years. There is a danger that, in the meantime, the tenant is acquiring rights that it was never intended to enjoy. Part II of the Landlord and Tenant Act 1954 gives most tenants who are occupying premises for the purpose of their business a statutory right to renew their tenancy at the end of the term. This is known as security of tenure.
A tenant can waive its right to a renewal lease by contracting out of the Act. In order to do so, however, the landlord must serve a warning notice on the tenant prior to the tenant entering into the lease, or agreement for lease.
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