You have probably heard this expression before, especially if you deal with leases of commercial property, but may well be unsure as to what it actually is!
Well, a statutory declaration is a formal statement made by someone affirming that something is true to the best knowledge of the person making the declaration (known as the ‘Declarant’). In order for the declaration to be valid it will need to be “sworn” in the presence of a solicitor, commissioner for oaths or notary public, often requiring the signature of the Declarant and the Solicitor.
Why use it in Commercial property?
Statutory declarations can be very important in a landlord tenant relationship. Where a premises is leased to a tenant for business use, there is a statutory right to renew the lease afforded to tenants under the Landlord and Tenant Act 1954, called Security of tenure. The parties can agree to ‘contract out’ of this ‘right’, by excluding the Landlord and Tenant Act 1954 (“the Act”). To do this, certain formalities must be completed. A notice is given by the Landlord to the Tenant, the Lease must contain wording confirming that the lease is excluded, and declaration is sworn by the Tenant. Failure to follow these steps, and ensuring any statutory declaration is sworn correctly, may leave a landlord in a difficult position when trying to refuse the granting of a new lease.
Essentially, contracting out means that a lease will come to an end on the expiry date and the Tenant does not have any automatic right to renew the Lease. From a tenant’s point of view, it is important to be aware of this when agreeing to the signing of a statutory declaration and therefore excluding the Act. A tenant must decide if this is something that they are willing to accept.
Point to note: The landlord must serve a warning notice, in a form prescribed by the Act, to the tenant notifying them of their intention to exclude the security of tenure provisions under the Act. A statutory declaration will then need to be sworn by an independent Solicitor when there are less than 14 days between the date of the Notice and the date the Lease is entered into. If there are more than 14 days, then a simple declaration response from the tenant will suffice. The format for both simple and statutory declarations are also prescribed by the Act.
Should you have any queries regarding this, or any other property matters please don’t hesitate to contact Josiah Hincks Solicitors and we would be happy to help.
Should you have any queries regarding this, or any other property matters please don’t hesitate to contact Josiah Hincks Solicitors and we would be happy to help.
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Written by Jedd Acton.
