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LTA 1954 changes – interim rent Print
Under the new regime, interim rent will be payable from the earliest date which could have been put in the actual s25 notice served by L, or the actual s26 request served by T. It follows that the very earliest date from which it will be possible for interim rent to be payable will be immediately after the end of the contractual term date.

Note that the interim rent will be backdated to that date irrespective of whether it is L or T who made the application, and irrespective of when that application was made.

Example 1: the contractual term expires 1 March 2005. T serves s26 request on 6 January 2005 and gives 6 January 2006 as the date the new tenancy should run. The earliest date T could have given is 6 July 2005 (ie six months’ notice), and thus interim rent will be payable from 6 July 2005.

Example 2: the contractual term expires 1 March 2005. L serves s25 notice on 6 January 2005 giving 6 January 2006 as the termination date. The earliest date that L could have given as the termination date is 6 July 2005 (ie six months’ notice). Whilst on a strict interpretation of the Act the interim rent will be payable from and including 6 July 2005, this does not make sense since the tenancy is continued under the s25 notice until Midnight on 6 July. Accordingly, the suggestion is that interim rent will be payable from 7 July 2005.

In general terms, the date for interim rent will be six months after service of the s25 notice or s26 request or, where later, the contractual term date. This backdating means that neither L nor T will get any benefit from manipulating the length of the s25 notice or s26 request. Source: Business Tenancies: The New Law – A Practical Guide to the Changes to the Landlord and Tenant Act 1954 Pt II, Jacqui Joyce, Lovells. £35. To order call 020 7396 9303 or e-mail  © Practical Lawyer

July 2004
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