The Section 40 Notice: A Detailed Guide
For qualifying business premises in England and Wales, the Section 40 Notice is a tool for landlords and tenants approaching the end of a tenancy. This legal instrument, rooted in the Landlord and Tenant Act 1954, serves as a formal request for information, enabling both parties to make informed decisions about renewing or ending a lease.
Article updated: November 2026
What a Section 40 Notice Is For
The Section 40 Notice is a legal instrument used within the context of business premises leases covered by Part II of the Landlord and Tenant Act 1954. A landlord with an interest above the tenant's lease can serve one on the tenant. A tenant can serve one on a landlord above their lease or on a lender that has taken possession of that landlord's interest.
The purpose of this notice is to gather essential details about the lease and the property, which can then be used to make informed decisions about renewing or ending the lease.
Legal Framework
The Section 40 Notice derives its authority from the Landlord and Tenant Act 1954, specifically Section 40 of the Act. This legislation provides a comprehensive framework for the rights and responsibilities of landlords and tenants in the context of business premises leases.
Section 40 of the Act allows a landlord to ask a tenant about their use of the premises, or a tenant to ask about a landlord's interest in them.
The Process of Serving a Section 40 Notice
A Section 40 Notice cannot take effect if it is served more than two years before the date on which the tenancy would end by expiry or could be ended by a landlord's notice to quit. It is therefore an end-of-tenancy information tool, not a notice that can be used at any point in a long lease.
The notice can be served by either the landlord or the tenant, depending on who requires the information. The party serving the notice must use the prescribed form. The recipient has one month from the date the notice is served to reply.
Obligations After Serving a Notice
For six months after a Section 40 Notice is served, the party who provided the information must keep it up to date. If any of it changes in that time, they must tell the other party within one month of becoming aware of the change.
However, the person who received the notice might transfer their interest. If they tell the sender about the transfer in writing and give the new owner's name and address, Section 40A ends their duty to give or correct information for the part they transferred.
Information Required
The information requested depends on who serves the notice. If a landlord serves the notice to a tenant, the tenant is required to provide information about their occupation of the premises, any sub-tenancies, and anyone else who owns the freehold or has a lease above the tenant's lease for any part of the property. This information helps the landlord understand the tenant's use of the property and any third-party interests that may exist.
On the other hand, if a tenant serves the notice to the landlord, the landlord is required to provide information about their own interest in the property and about anyone with an interest above it, such as the freeholder or someone holding a superior lease. If the landlord holds only a lease themselves, the reply must also say how long that lease runs and, if their own landlord can end it with a notice to quit, the earliest date they could do so. It must also give details of any notice served to end that lease or to oppose a new one, and of any request for a new one.
The Impact of Section 40 Notice on Lease Decisions
The information obtained through a Section 40 Notice can significantly affect decisions about renewing or ending a lease. For example, a landlord can establish whether the tenant occupies the premises for business and whether there are sub-tenancies. A tenant can identify the freeholder, a landlord above their lease or a lender that has taken possession of a landlord's interest. A solicitor can then assess who has the relevant interest and what steps are available under the 1954 Act.
FAQ
What is a Section 40 Notice?
A Section 40 Notice is a legal request for information served by a landlord or tenant to the other party under the Landlord and Tenant Act 1954. It is used to gather information about the lease and the property.
When should a Section 40 Notice be served?
It can be served within the final two years before the tenancy would end by expiry or could be ended by a landlord's notice to quit. The recipient has one month from the date the notice is served to reply.
What happens if the information provided in response to a Section 40 Notice changes?
The party who gave the information must tell the other party about the change. They have one month from becoming aware of it to do so. This duty lasts for six months after the notice is served.
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