Legal support when renewing a commercial lease

Where a commercial lease of business premises enjoys security of tenure under the Landlord and Tenant Act 1954 (Act), the tenancy can only be renewed upon the expiry of the contractual term, using one of the prescribed methods authorised by the Act (see below).

If neither the landlord nor the tenant take any steps to bring the tenancy to an end, it will become a continuation tenancy (often referred to as a tenancy which is “holding over” under Section 24 of the Act) on the same terms as the lease, until either party takes positive steps to bring that continuation tenancy to an end.

How can I renew my commercial property lease?

The commercial lease renewal process can be engaged in two ways:

  1. By the landlord serving notice on the tenant under Section 25 of the Act to bring the existing tenancy to an end and propose terms for a renewal lease; or
  2. By the tenant serving notice on the landlord under Section 26 of the Act to bring the existing tenancy to an end and propose terms for a renewal lease.

Whether the renewal is at the request of the landlord or the tenant, the requisite notice must be in the prescribed form and provide the appropriate statutory notice period. Moreover, if the contractual term of the existing lease has not yet expired (therefore the tenancy is not “holding over” under Section 24), the end date within either party’s notice cannot be before the expiry of the contractual term. These considerations can become the pitfalls of the unwary party and can invalidate their notice.

Usually, the parties will use the statutory notice period to negotiate the terms of the renewal lease. However, if a new lease is not agreed and entered into by the expiration of the notice period, the tenancy will come to an end and the tenant will lose their rights of occupation, unless an extension to the statutory notice period is formally agreed in writing between the parties or one of the parties (usually the tenant, on the basis that key terms such as rent and term of the renewal lease cannot be agreed) issues a claim to request a new tenancy from the Court.

The expiration of the notice is also significant in the context of interim rent, which is an important consideration in lease renewal proceedings for both the landlord and the tenant.

At Nelsons, we can guide you through this complex area of law to ensure that you understand the rules to ensure that your business cash flow is not adversely effected.

How we can assist with commercial lease renewals

Our expert team of property dispute solicitors in Derby, Leicester and Nottingham are specialists in commercial lease renewals and have a proven track record of getting results for both landlords and tenants alike in respect of the renewal process and any subsequent legal proceedings.

As the process can often be tactical and time sensitive, our team will always listen to and be mindful of your objectives before advising you to engage in the process. Our team is highly regarded and recommended by the independently-researched Legal 500 as being one of the top teams of specialists in the country.

For further information on how our expert team of property dispute solicitors can assist with commercial lease renewals, please contact us on 0800 024 1976 or via our online enquiry form.

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For advice and support 0800 024 1976