Termination of Tenancies for Tenant Default - Law Commission
Termination of Tenancies for Tenant Default - Law Commission
Termination of Tenancies for Tenant Default - Law Commission
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dispensation power will only be exercised where it is just and equitable to do so. 69<br />
It is very unlikely to be exercised where a landlord has served a summary<br />
termination notice knowing that it was likely to be successfully challenged by the<br />
tenant (or a qualifying interest holder).<br />
7.100 Where the court refuses an application <strong>for</strong> a discharge order the tenancy will<br />
terminate automatically on the date specified in the summary termination notice<br />
or on the date that the application is refused (whichever is the later). 70 However,<br />
where the tenant or another person remains in occupation <strong>of</strong> the premises after<br />
that date, the landlord will require an order <strong>for</strong> possession in order to en<strong>for</strong>ce the<br />
right to take possession <strong>of</strong> the premises. We consider that it would <strong>of</strong>ten be unfair<br />
<strong>for</strong> the landlord to have to apply to the court <strong>for</strong> an order <strong>for</strong> possession in<br />
circumstances where the court has already rejected an application <strong>for</strong> a<br />
discharge order. We there<strong>for</strong>e recommend that, where a court declines to make a<br />
discharge order, it should have power to make an order <strong>for</strong> possession.<br />
Automatic termination<br />
7.101 If the summary termination notice is not withdrawn by the landlord or challenged<br />
by the tenant (or a qualifying interest holder), the tenancy will terminate<br />
automatically one month after being given.<br />
7.102 Once the tenancy has ended, the landlord will be entitled to recover possession<br />
<strong>of</strong> the premises. If the premises are abandoned, the landlord will be able simply<br />
to recover possession on that date. If the <strong>for</strong>mer tenant (or anyone, <strong>for</strong> that<br />
matter) remains in occupation, the landlord will need to obtain an order <strong>for</strong><br />
possession from the court. We do not want this to be a time-consuming process<br />
<strong>for</strong> the landlord to have to undertake. We there<strong>for</strong>e recommend that an expedited<br />
procedure should be available to the landlord. This will be achieved through the<br />
CPR governing actions <strong>for</strong> the recovery <strong>of</strong> land 71 rather than by means <strong>of</strong> express<br />
provision in the draft Bill.<br />
Post-termination order<br />
7.103 Under current law, a tenant or derivative interest holder may apply <strong>for</strong> relief after<br />
the tenancy has been <strong>for</strong>feited (whether by court action or physical re-entry). 72<br />
Under the CP’s provisional proposals there was no such right. We believe that<br />
this would potentially have placed tenants and derivative interest holders in a<br />
worse position than that they are in under the current law. We now recommend<br />
that, where a tenancy has terminated under the summary termination procedure,<br />
the <strong>for</strong>mer tenant or <strong>for</strong>mer qualifying interest holder should still be entitled to<br />
apply to the court in appropriate circumstances.<br />
69<br />
For example, where the landlord reasonably believed that the demised premises had been<br />
abandoned by the tenant.<br />
70 Where there is an application <strong>for</strong> a discharge order, the tenancy will continue until<br />
determination <strong>of</strong> that challenge (or the expiry <strong>of</strong> any period during which an appeal in<br />
relation to that determination may be brought, and during the disposal <strong>of</strong> any such appeal).<br />
71 Civil Procedure Rules, Parts 55 and 56.<br />
72 But there is currently no right to relief after a court order <strong>for</strong> possession has been<br />
executed, except where the ground <strong>for</strong> <strong>for</strong>feiture was non-payment <strong>of</strong> rent (in which case,<br />
all relief is barred six months after repossession): County Courts Act 1984, s 138(9A).<br />
154