Commercial landlord and tenant law 2 Essay Example | Topics and Well Written Essays - 1750 words

Commercial landlord and tenant law 2 - Essay Example In the event where the landlord intends to repossess the premise for personal use for other reasons, the Act provides the processes the landlord should follow without incurring a liability for breach of the lease contract (Bright, 2007. P. 186). The actual procedure for bringing tenancy to end depends on the terms under which the contract was formed. In addition, the process will be influenced by the manner in which both parties have adhered to the terms of the contract as well as the application of right process for ending the tenancy in accordance to the Act. Unit 1 In the case of unit 1, the lease contract was initiated on September of the year 2000, and the lease period was fifteen years. The contract was completed under Full Repairs and Insurance (FRI) lease in accordance to the landlord and tenant Act of 2000. However, during the lease period the tenant renovated the premise by constructing an extension and installing air conditioner at a value of ?125,000 in the year 2004. Thi s resulted to an appreciation of the rental value of premise to about ?14,500. In this situation, the occupier is entitled for compensation from the landlord for the cost he or she has incurred in adding value of the building (McQueen, 2010. P. 43). According to this Act, the tenant is entitled to receive compensation because of improving the status of the building above the state it was in before the occupancy (Bright, 2007. P. 195). Since the tenant occupied the building in the year September 2000, the period of occupancy is below fourteen years. The tenant has left twenty months before the expiry of the lease period. The Act requires compensation at a value of rate-able value of the premise in the event of termination at the request of the landlord. In case the landlord succeeds in terminating the lease contract for unit 1, the occupier will have to be compensated on the ground that the landlord wants the building for other use rather than breach of agreement by the occupier (Lin da, 2013. P. 17). The landlord has numerous means to explore in clearing unit 1 for another tenant. Firstly, the landlord can issue the tenant with a six months notice under section 25 of the Act. In this notice, the landlord should indicate the reasons for refusal of a new tenancy taking into considerations the requirements of section 30 of the Act (Portman, & Marcia, 2012. p.79). In this situation either the landlord or the tenant will petition the court of law to justify the landlord’s application of rejecting new tenancy under section 30 of the Act. The case will have to be determined by the court and decide whether the occupier will vacate the premise to continue living in it (Jeffrey, 2003. P. 43). If the landlord succeeds in this application, the tenant will have to vacate the building upon the completion of the lease period that will expire in twenty months time from now. Another option available for the landlord to clear unit 1 building for another client is through mutual agreement with the current occupier. This is the best option because it will not require tedious procedure, but instead the landlord may inquire from the client as to whether they will renew the contract or whether to bring the tenancy to an end (Bright, 2007. p. 256). This is referred to as mutual agreement since the two parties must consent on the action to be taken. The Act grants the tenants right of tenure that allows tenants to continue