There is a lot for both landlords and tenants to consider before the lease expires. Advice should be sought an early stage so that all of the options can be considered fully, and the appropriate notices can be served in good time.
We regularly assist landlords and tenants in both contested and uncontested commercial lease renewals.
Where the Landlord and Tenant Act 1954 (the Act) applies, a tenant will have a right to remain in the premises on the expiry of its lease. In addition, the Act gives rights to tenants to apply for a new lease.
A landlord can only oppose a new lease if it can prove one or more of the limited grounds in the Act. If a landlord is opposed to the grant of a new lease, it must have sufficient evidence to establish its ground. This should be considered carefully before any notice is served.
A landlord can seek to end a commercial lease by serving a notice under Section 25 of the Act, either offering the tenant a new lease, or stating reasons why a new lease will not be granted. A tenant can begin the renewal process by serving a notice under Section 26 of the Act.
Following service of a lease renewal notice, the parties will negotiate terms for a new lease. Tenants need to make an application to court for a new lease before the expiry date of the notice, or agree a written extension of time with the landlord. The deadlines must be closely monitored, as if the tenant does not take these steps, it will lose its right to a new lease.
If the terms of the new lease cannot be agreed, the landlord or tenant can apply to the court to ask the court to decide the terms of the new lease.
Our lease renewal experts can:
The team's real strength lies in the fact that everyone takes a very commercial approach towards litigation, realising that sometimes a good settlement may be worth more to a client than a judgment from a court.