It launched two consultations this week, ‘Business tenancies: the right to renew’, and ‘Commercial leasehold’. Both consultations run until 16 September.
According to the commission, there are problems with the renewal regime, under which business tenants are entitled to renew tenancies unless they opt out. It says those opting out endure extra expense and delay due to the convoluted procedure they must follow.
It identifies other areas of unnecessary bureaucracy, for example, in certain mixed-use developments, flat owners have a right of first refusal where their landlords plan to sell. These rights, introduced in the 1980s and 1990s, are preventing sensible commercial transactions, the commission says.
Law Commissioner Professor Lisa Webley said the law is ‘causing significant problems in practice, creating barriers for businesses’.
