Agreement To Exclude Security Of Tenure Template for England and Wales

When entering into a commercial lease agreement, you may need to consider whether the tenant should have automatic rights to renew the lease at the end of the term. Under English law, the Landlord and Tenant Act 1954 grants business tenants security of tenure, meaning they can typically remain in the property and request lease renewal. An Agreement To Exclude Security Of Tenure allows you to contractually remove these protections, giving landlords greater flexibility over their commercial properties.

When do you need this document?

You need this agreement when entering into commercial lease arrangements where the landlord wishes to maintain control over the property at lease expiry. This commonly occurs in short-term letting arrangements, development sites where redevelopment is planned, or properties being sold with vacant possession. The agreement is also essential for landlords who want certainty that tenants will vacate at the agreed date without lengthy renewal negotiations or tribunal proceedings.

Key legal considerations

The agreement must comply with strict statutory requirements to be valid. You must serve the mandatory warning notice on the tenant at least 14 days before the lease is completed, clearly explaining the consequences of excluding security of tenure. The tenant must then make a statutory declaration before a Commissioner for Oaths or solicitor, confirming they understand and accept the exclusion. If the warning notice is served less than 14 days before completion, the tenant must make a statutory declaration instead of a simple declaration. The agreement must expressly reference sections 24 to 28 of the Landlord and Tenant Act 1954 and clearly state both parties' intention to exclude these provisions.

Legal requirements in England and Wales

Under the Landlord and Tenant Act 1954 and the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003, specific procedures must be followed precisely. The warning notice must be in the prescribed form and served by an acceptable method such as personal service or registered post. The tenant's declaration must be made before a person authorised to administer oaths, and both documents must be retained as evidence of compliance. Any deviation from these procedures can render the exclusion invalid, potentially leaving landlords unable to recover possession at lease expiry. The agreement itself should be executed as a deed to ensure enforceability and should clearly identify the property, parties, and the specific lease to which the exclusion applies.