Contracting out of LTA 1954 security of tenure when the warning notice is served late (s.38A)
Zainab Hussain is taking a five-year lease of a small office in Leicester for her accountancy practice. The parties have agreed that the lease will be contracted out of the security of tenure provisions of Part II of the Landlord and Tenant Act 1954. Completion of the lease is fixed for 15 July 2026, and Zainab will not be contractually bound before then. The landlord's solicitor serves the prescribed warning notice on Zainab on 9 July 2026, six days before completion.
What must happen for the contracting-out agreement to be valid?
Choose one answer to see the reasoning.
Worked answer
Correct answer D: Before she enters into the lease, Zainab must make a statutory declaration in the prescribed form, and the lease must contain or be endorsed with references to the notice, declaration and agreement.
THE RULE TO REMEMBER
If the landlord's warning notice is served less than 14 days before the tenant commits to the lease, the tenant must make a statutory declaration (not a simple one) beforehand for the contracting out to be valid.
Contracting out of LTA 1954 security of tenure when the warning notice is served late (s.38A)
Under s.38A(1) of the Landlord and Tenant Act 1954, the parties to a lease for a term of years certain may agree to exclude ss.24 to 28. By s.38A(3), the agreement is void unless the landlord serves the notice in Sch 1 to the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 and the requirements in Sch 2 are met. Where the notice is served at least 14 days before the tenant enters into the lease (or becomes contractually bound, if earlier), a simple declaration is enough (para 3). Here the notice was served only six days before completion, so para 4 applies: the tenant or a person authorised by her must make a statutory declaration, before entering into the lease. Paragraphs 5 and 6 require the lease to contain or be endorsed with a reference to the notice and statutory declaration, and to the agreement itself.
Why A is wrong: A simple declaration suffices only where the notice is served at least 14 days before the tenant enters into the lease or becomes contractually bound.
Why B is wrong: Court approval of contracting-out agreements was replaced in 2004 by the notice and declaration procedure.
Why C is wrong: A notice served less than 14 days before is not fatal; the tenant can instead make a statutory declaration.
Why E is wrong: Any declaration must be made before the tenant enters into the lease or becomes contractually bound; it cannot follow completion.
A little more practice done.
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