On 1 April 2000 the new rating valuations take effect, with the rateable value of some properties expected to increase by over 100%. The amount of compensation a landlord must pay to a tenant if its business tenancy is not renewed is calculated on the basis of the property's rateable value. What can a landlord do to mitigate its compensation liability in the face of such substantial rates increases?
When is compensation payable?
Compensation for disturbance is payable to a tenant when its tenancy is protected by the Landlord and Tenant Act 1954 and the landlord objects to the grant of a new tenancy on "no fault" grounds. So compensation may be payable if the landlord serves a notice bringing the tenancy to an end (a so-called "section 25 notice") stating that the landlord opposes the tenant's renewal rights because either it wants to re-let the property of which the premises form part as a whole, or it intends to demolish or redevelop the premises or to occupy the premises for its
