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If you are taking a new commercial lease, you may well be asked to sign a statutory declaration before the lease is completed. This is often required where the lease is being granted outside the security of tenure provisions contained in the Landlord and Tenant Act 1954.
Understanding what a statutory declaration is and why it is required can help ensure you are fully aware of the rights you may be giving up before entering into the lease.
What is a Statutory Declaration?
A statutory declaration is a formal written statement of fact that you declare to be true in the presence of an authorised person, usually a solicitor or commissioner for oaths.
By signing the declaration, you confirm that the information contained within it is true to the best of your knowledge. Knowingly making a false declaration can amount to a criminal offence.
Why Might a Statutory Declaration Be Required for a Commercial Lease?
Landlords quite often require that the commercial lease is granted outside of protection under the Landlord and Tenant Act 1954. The Act otherwise gives business tenants important rights, including the right to remain in occupation of the premises at the end of the contractual term and, in many cases, the right to request a further lease from the Landlord, which the Landlord is only entitled to refuse on certain specific grounds set out in the Act.
Where a lease is being "contracted out" of these statutory protections, the landlord must first serve a formal Warning Notice explaining the rights the tenant will be giving up. If that Notice is served at least 14 days before entering into the lease, the Tenant can just sign a simple declaration. However it is more common, irrespective of the period before lease entry that the Notice is served, for the tenant or, where a company, a person authorised on behalf of it to be required to make a statutory declaration confirming the tenant understands the rights they are giving up.
Before signing, it is important that tenants understand the implications of contracting out and take legal advice where necessary.
Who Can Administer a Statutory Declaration?
A statutory declaration must be signed in the presence of an authorised person, such as:
The person administering the declaration must be independent and not directly involved in the transaction.
What Documents Should You Bring?
If you need to make a statutory declaration in connection with a lease, you should bring:
Having the correct documentation available will help ensure the appointment can be completed efficiently.
How Much Does a Statutory Declaration Cost?
The statutory fee for witnessing a statutory declaration is £5 and most local solicitor’s firms will be willing to assist.
Need Advice on a Commercial Lease?
Our Commercial Property solicitors advise landlords and tenants on all aspects of commercial leases, including the grant of a new lease, lease renewals, assignments and contracting out of the Landlord and Tenant Act 1954.
If you would like advice on a proposed commercial lease or need to make a statutory declaration, please contact our Commercial Property team.
Whatever legal support you need, our experienced and highly skilled solicitors and legal advisors are here to help. With expertise across a wide range of legal areas, we provide clear, practical advice tailored to you. What sets us apart is our commitment to understanding your needs and delivering the best possible outcome with a personal touch.
