Recovery of premises under the Landlord and Tenant Act 1954

A recent judgment has reinforced the importance of landlord intentions under the Landlord and Tenant Act 1954. Kirsty Black and Sophie Tracey look at the lessons from the case.

In a key ruling under the Landlord & Tenant Act 1954, the High Court has granted a landlord possession of an iconic Sheffield music venue following successfully satisfying the requirements of section 30(1)(g) of the Act (Ground G) – entitling landlords to recover possession of premises from protected tenants where they intend to occupy the premises for their own business purposes.

The Leadmill was operated by The Leadmill Limited, which was occupying the premises pursuant to a lease that expired March 2023. The lease benefited from the security of tenure protection of the Act. 

MVL Properties (2017) Ltd (“MVL17”), the landlord, sought to terminate the Leadmill’s tenancy as part of contested lease renewal proceedings pursuant to Ground G. 

In its submissions, MVL17 argued that it planned to refurbish and operate the venue as part of its music venue circuit, which includes other notable settings across the UK.

The Leadmill Limited contested the termination, arguing that the venue’s unique character and historical significance should be preserved under its current management. It emphasised its long-standing commitment to the community and the venue’s role in nurturing local talent.

Decision

After some deliberation, the court found in favour of the landlord, concluding that MVL17 had a “clear and genuine” intention to refurbish and operate The Leadmill as part of its music venue offering. 

Of relevance was the fact that MVL17 demonstrated adequate financial resources to undertake the necessary refurbishment, meeting the requirements of Ground G. 

The Judge commented that “the balance between tenant security and landlord rights is crucial, and in this case, MVL17’s intentions align with the legal requirements to reclaim possession”. 

In response to the Leadmill’s concerns about the venue’s legacy, the Judge further remarked that “while the historical significance and unique character of The Leadmill are undeniable, the law provides for landlords to reclaim possession if they have genuine and feasible plans for the property. MVL17 has demonstrated such plans convincingly”.

Implications

This ruling serves as a reminder of the complexities involved in balancing the rights of landlords and tenants under the Act, especially in the context of culturally significant properties. 

It also highlights the importance of genuine business intentions and the financial capability of the landlord in contested lease renewals, emphasising the need for landlords to demonstrate well considered and feasible plans for their own occupation and redevelopment of the property in question.

Kirsty Black is a Partner and Sophie Tracey is a Principal Associate at Shoosmiths.