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Property Topics - Lease Renewals

If you are a business tenant of commercial premises it is important to establish whether your tenancy falls within the protection of The Landlord & Tenant Act.

Your rights, opportunities and risks vary enormously depending upon whether you are inside or outside the protection of this Act. If your lease is contracted outside the protection of The Act, you have no rights to renew by Statutory protection.

In simple terms, The Landlord & Tenant Act 1954 gives business tenants an element of security of tenure - the right to renew the tenancy when it comes to an end.

Leases with this protection do not automatically come to an end. Either party needs to serve the requisite notice to end it, or the tenant needs to vacate a fixed time period before the lease end.

If the landlord and tenant agree that there should be a new tenancy but cannot agree to its terms either can apply to the Court for a new tenancy. Alternatively, if the tenant wants a new tenancy but the landlord refuses to grant one, the tenant can apply to the Court. The Court will then settle the rent and any other terms of the new tenancy. The landlord can oppose the renewal of the tenancy for certain limited specific reasons. Some may be to do with the tenant’s own conduct - for example, failure to pay rent, others are to do with the landlord’s needs - for example, where landlords wish to redevelop the premises or get them back for their own use. There are many restrictions on landlords seeking to implement these procedures and strict conditions need to be satisfied. In the event of dispute, the Court can decide whether the landlord has grounds for opposing renewal and whether or not to order a new tenancy.

Until agreement can be reached, the rent and terms may be fixed by either Court or Arbitration and we can advise on the best procedures to adopt.

It is impractical for a bulletin of this length to be all encompassing and it is important that the contents of this leaflet are not relied upon for any specific circumstance. It is always important to seek professional advice.

*This document is prepared as a brief guide and must not be relied upon or considered as comprehensive. Professional advice should always be sought.

If you have a specific query, visit the property professionals section of the site and e-mail one or all of the property agents listed. Each firm selected by this site has departments with expertise in this field.

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