Commission consults on draft Leases Continuation Bill

A draft Leases (Automatic Continuation etc) (Scotland) Bill has been published for consultation by the Scottish Law Commission.

The bill has been prepared following responses to the Commission's 2018 consultation on termination of commercial leases, the first part of its project looking at aspects of the Scots law of leases.

The Commission said these responses had assisted it in developing the proposals for reform reflected in the draft bill. Consultees’ views on the draft will help it to finalise its report, which it expects to publish in 2022. 

Provisions in the draft bill cover a range of matters including: 

• when a lease will continue automatically at the end of its term by tacit relocation, and the means by which parties may contract out of automatic continuation of a lease;
• what notice must be given by landlord or tenant to prevent automatic continuation of a lease, and the means by which notice may be given;
• the duration of a lease and date of entry in the absence of agreement;
• other matters relating to the start, end or length of a lease.

David Bartos, lead commissioner on the project, commented: "Commercial leases are fundamental to the Scottish economy. It is important that the law governing the rights of landlords and tenants be clear. The present law about the ending of commercial leases is anything but clear, and risks expense, delay and inconvenience for entrepreneurs planning their businesses, large or small. This draft bill reflects our present thinking on how the law should be reformed. We are keen to hear from anyone with an interest in commercial leases, ranging from legal practitioners and surveyors to businesses large and small. The responses we receive now will help us make our proposed reform the best it can be."

Click here to access the consultation. Responses can be made until 28 January 2022.