The Landlord and Tenant Act 1954, which forms the fundamental basis of the law in England and Wales is not applicable in Scotland. With the exception of limited statutory provisions, the agreement between landlord and tenant in Scotland is contained entirely in the lease, although where disputes arise the presumption of reality often prevails.
In Scotland disputed rent review matters are determined by reference to the RICS Practice Statement and Guidance Notes for Arbiters and Expert Witnesses, whereas in Engalnd and Wales the Arbitration Act 1996 dictates Third Party Procdures. Again, this applies to all commercial and retail property where a formal lease exists.
The principle of Tacit Relocation exists whereby a Scottish lease will only come to an end if either the landlord or the tenant serves a formal Notice to Quit in writing no less than 40 days prior to the termination date. In the absence of such Notice, the lease will continue for a further period of one year on the same terms and conditions, including the rent.