The new procedure on contracting out requires that:
T must be served with a notice warning him of the consequences of contracting
out of his LTA 1954 security of tenure.
T must then confirm that he has received the notice. This can be by a 'simple
declaration' if L's warning notice is served 14 days or more before T signs
the tenancy (or the contract). If the warning is served less than 14 days
beforehand, then T's declaration has to be a 'statutory declaration'.
In addition, the lease must contain (or have written on it) a reference to the warning notice given by L, plus a reference to the simple (or statutory) declaration made by T, as well as the agreement to exclude security (or a reference to that agreement). Suitable wording would be:
In accordance with the provision of s38A(1) of the Landlord and Tenant Act
1954 the parties have agreed that the provisions of ss 24-28 of that Act (inclusive)
shall be excluded in relation to the tenancy created by this Lease.
The landlord has served on the tenant a notice in the form, or substantially
in the form, set out in Schedule 1 to the Regulatory Reform (Business Tenancies)
(England and Wales) Order 2003 ('the Order').
The requirements specified in Schedule 2 to the Order have been met in that
the tenant has made a [statutory] declaration in the form, or substantially
in the form, set out in Para 7 [if simple declaration] Para 8 [if statutory
declaration] of Schedule 2 to the Order.
