Section 25 notice explained

What the notice must contain

A section 25 notice must be in the prescribed form, be given by the competent landlord, identify the premises, and specify the date on which the tenancy is to end. That date cannot be earlier than the date the tenancy could have been ended at common law, and must fall between six and twelve months after the notice is given.

The notice must then state one of two things. Either the landlord would not oppose a new tenancy — in which case the notice must set out the landlord's proposals for the new lease — or the landlord opposes, in which case it must state every section 30 ground relied on. Only grounds stated in the notice can be argued later.

How to check whether the notice is valid

Work through the notice methodically. Was it given by the competent landlord, meaning the landlord whose interest will last more than fourteen months beyond the notice date? Is it the correct prescribed form and version? Is the termination date within the six to twelve month window and not earlier than the contractual expiry? Are the tenant and premises correctly identified? Was it served in a way the lease or section 23 of the 1927 Act permits, and can service be proved?

Not every slip is fatal. Under Mannai Investment v Eagle Star a notice survives an obvious error if a reasonable recipient with knowledge of the lease would not be misled. But a missing ground, a bad date, or service by the wrong entity usually is fatal.

• Correct prescribed form, correctly completed
• Given by the competent landlord
• Termination date 6–12 months ahead and not before contractual expiry
• Every ground of opposition stated
• Provable service on the tenant named in the lease

What a tenant should do on receiving one

Diarise the termination date the day the notice arrives — that date drives everything. Decide whether you want a new lease, and take a view on any grounds of opposition and the evidence behind them. Reply to any section 40 request for information within the time allowed.

If terms are not agreed, either side may apply to the court for a new tenancy. The application must be made before the termination date specified in the notice, unless the parties agree an extension in writing beforehand. Missing that deadline ends the statutory right to renew, however strong the case would have been.

Serving one as a landlord

Serving first lets you set the timetable and choose the termination date, which matters where the market is moving or where you need vacant possession for redevelopment. If you intend to oppose, be sure the evidence for the ground will exist by the date of the hearing, and price the compensation payable under section 37 on the no-fault grounds before committing.