Commercial property leases come in all kinds of shapes and forms. Typically, a lease specifies all the conditions the tenant and landlord must accept.
We here at Kirkby Diamond are commercial property specialists with a thorough understanding of the Landlord & Tenant Act 1954 and the prime regulation which impacts the conditions of a commercial lease contract.
Our commercial property experts appreciate and listen to your needs and then use our expertise in property law to help manage a commercial lease renewal procedure on your behalf.
In this blog, we'll explain how the commercial lease renewal procedure works after your current deal has terminated.
The Landlord and Tenant Act 1954
Tenants in some cases are covered by the Landlord and Tenant Act 1954 when it comes to renewing a commercial property lease. This is a piece of UK law to make sure a tenant can’t be made homeless.
Sometimes, this critical Act also gives business tenants specific rights in terms of renewing a lease about to expire. Thanks to the 1954 Act, even though a lease arrives at its termination date, it won’t automatically expire.
Theoretically, it could continue forever until one of the commercial lease renewal procedures summarised in the Act is activated to cause its termination.
When to Renew a Commercial Property Lease
If your commercial property lease is about to expire and you need to renegotiate it, the best time to do so is between six and 12 months before the termination date.
It doesn’t matter whether you’re a tenant or landlord. So, at this stage, ensure you think about all your possibilities.
If neither the tenant nor landlord begins the commercial lease renewal procedure, everything resumes under the same conditions under the ‘holding over’ procedure.
Can Landlords Begin a Lease Renewal?
Landlords wishing to instigate a lease renewal must serve a ‘Section 25’ notice on their tenant between six and 12 months before the expiry date stated in the lease.
However, you must state a future date if the lease is holding over, but it must be a minimum of six months after the notice has been carried out.
In the notice, you must communicate your anticipated revised conditions or why you don’t wish to issue a new lease.
If a tenant disputes the revised conditions and the tenant and landlord fail to agree, either party has the right to request that the court reaches a verdict and establish ‘fair’ conditions.
Choose Us to Conduct a Commercial Lease Renewal Procedure
Having successfully negotiated hundreds of commercial lease renewals across Hertfordshire, Bedfordshire and Buckinghamshire, we at Kirkby Diamond are hugely experienced in this specialist area.
If you’re nearing the end of a commercial property lease and want to renegotiate, email email@example.com – our experienced team of experts would love to help!