1. T must be served with a notice warning him of the consequences of entering into the agreement (ie that it excludes LTA 1954 security of tenure). He must be advised to get legal advice.
2. T must then confirm that he has received the notice.
3. There must be reference to the exclusion agreement, plus (1) and (2) above in the actual tenancy agreement. The written confirmation to be provided by T (ie (2) above) can either be a 'simple declaration' if T is given 14 days or more notice, or a statutory declaration (if T is given less than 14 days notice).

Particular points to note:

• there is no need to attach a copy of the proposed tenancy agreement to the notice given to T;
• best practice will probably be to ensure that the original declaration (which will contain a copy of the notice given to T) be attached to the counter-part lease, and that a copy of it be attached to the original tenancy document. Also, it is probably best practice to refer to the notice and the declaration immediately above the place where T signs the lease and the counterpart;
• these declarations require T to identify the premises and the commencement date. No other detail is specifically required, which leaves open the question of what happens if the negotiated terms have changed substantially in the meantime. In practice, it is difficult to see why there should be a problem (unless L has been foolish enough to attach a copy of the proposed tenancy to the notice served on T). In any event, if T's declaration is attached to the counter-part lease it is difficult to see how T could raise a valid complaint at a later date.

For further commentary see useful article in [2004] SJ 520. © Practical Lawyer