Part 10: Letting by Local Authorities of Vacant High-street premises Procedure for letting Section 206: Terms of tenancy Effect
Subsection (2) provides for a further limit on the length of term of the tenancy which can be granted by the landlord. A tenancy can be for a term of at least one year but not exceeding 5 years (see section 218(8)) but also needs to take into account the length of the landlord’s own interest, which may be leasehold and shorter than 5 years. For example, if the landlord has 3 years and 1 day remaining on the term of its own lease then it can only grant a tenancy for a term of up to 3 years.
	Subsections (3), (4) and (6) set out what terms the tenancy must include. This includes those matters described in Schedule 21 (Provision to be included in terms of tenancy further to agreement under section 204).
	Subsection (5) provides that the terms of the tenancy may include the grant of rights to the tenant over land outside the premises.
	Subsection (7) gives the Secretary of State the power through regulations to make further provision about the terms of the tenancy and, in making the regulations, subsection (8) requires the Secretary of State to have regard to the terms on which contracts for the grant of short-term tenancies are typically entered into on a commercial basis.
	Subsection (9) imposes a requirement on local authorities to have regard to representations made by the landlord in deciding the terms of the tenancy.
	Subsection (10) provides definitions for the purpose of this section.