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Leases (Automatic Continuation etc.) (Scotland) Bill - Financial Memorandum

Overview

Under this Bill, certain types of commercial lease would continue automatically after the date they would otherwise have ended (the “termination date”). To end the lease on its termination date, the landlord and tenant must both agree that it will end then, or either the landlord or tenant must give notice. The Bill sets out rules about what the notice must contain, when it must be given, how it can be given, and situations when notice can be withdrawn. The proposed legislation will replace the current law for automatic continuation of leases, which is known as “tacit relocation”.

The Bill also sets out rules for how leases end, including:

• how to determine the date of entry and duration of a lease when it is not clear;
• that all parties to a lease must provide an address in the UK where certain documents can be sent to them;
• updates the rules around a landlord ending a lease early using a process called “irritancy”, (normally as a result of the tenant breaching the terms of the lease) when there is a standard security (a mortgage) over the lease;
• allowing for repayment of rent or other payments after the end of a lease when those payments were made in advance and cover a period after the end of the lease.

Financial Memorandum

As with all Bills, the Finance and Public Administration Committee invites written evidence on the estimated financial implications of the Bill as set out in its accompanying Financial Memorandum (FM).

Read the FM for this Bill: Financial Memorandum.

Your Views

The Committee has launched a call for views on the Financial Memorandum of the Bill. The closing date for submissions is Friday 7 March 2025.

You can submit your views to the Committee on Citizen Space.