ABSTRACT
If, after the tenant has applied to the court for a new tenancy, the parties reach agreement on the terms of the new tenancy, the parties have two alternatives: they could have their agreement embodied in a court order; or, alternatively, the tenant could agree to withdraw its application for a new tenancy on a new tenancy being granted. The parties’ agreement should be in writing, otherwise it will not be binding on either party (s 69(2) of the 1954 Act). It should also satisfy the requirements of s 2 of the Law of Property (Miscellaneous Provisions) Act 1989, ie, it should be in writing, incorporate all the agreed terms and be signed. Once a binding agreement has been made, the 1954 Act will no longer apply to the current tenancy (s 28 of the 1954 Act). The agreement should also deal with the matter of costs.
