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Commercial Lease Renewal Notices

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Forbes Solicitors' offer expert advice on the renewal of commercial leases. We understand the complexities of commercial lease renewals and can help you to navigate the process effectively. Our experienced team can assist with drafting and serving the necessary notices, negotiating the terms of the new lease, and representing you in disputes that arise during the renewal process.

What is a Commercial Lease Renewal Notice

A commercial lease renewal notice is a document provided by a landlord to a tenant when the existing lease agreement is nearing the end of its term. It outlines the terms of the renewal, including rent amount, length of the renewed lease, and any changes in the terms of the agreement.

If you are a commercial landlord or tenant, and the contractual term of your lease has expired, you should consider serving a statutory notice requesting or refusing a new lease - to protect your interests and to seek certainty for your business. These are often referred to as s.25 or s.26 notices.

Unless excluded, the Landlord and Tenant Act 1954 grants commercial tenants a right to request a new lease, on expiry of the old lease. There are limited grounds set out in the Act for a landlord to oppose a renewal lease. Where a landlord wishes to oppose a new lease, specialist advice is vital in deciding which ground(s) to use and how to use evidence effectively.

The rules on the correct forms to use, the correct method of service and the timing of the notices is complicated and strict. The minimum notice period is 6 months, so it is important to act fast, preferably before the contractual term of the lease expires.

We offer a fixed fee service to assess the what, when and how of the notice necessary. This will enable you to make the right decision as to how to proceed.

If the contractual term has expired or will expire in the next 12 months, now is the time to take advice.

We aim to provide you with initial advice within 2 working days of instruction at a fixed fee.

We also offer a fixed fee for drafting and serving the notice. Our commercial property team can then deal with the transaction.

Why choose our solicitors for commercial lease renewal notices?

Commercial lease renewal notices can be complex so our team of specialist solicitors can provide expert advice and guidance throughout the process. We are dedicated to achieving the best possible outcome for our clients and will work tirelessly to ensure that their interests are protected. With a proven track record of success, we are the ideal choice for anyone seeking reliable and effective legal representation for their commercial lease renewal needs.Who do our solicitors help with commercial lease renewal notices?Our lawyers help commercial tenants and landlords with the renewal of their lease agreements, ensuring that all legal requirements are met and negotiations are conducted in a fair and efficient manner.

How can our solicitors help commercial lease renewal notices?

At Forbes solicitors we can assist with commercial lease renewal notices by reviewing the lease agreement, advising on the renewal process, negotiating lease terms, and drafting and serving the renewal notice. We can also provide guidance on rent reviews, break clauses, and other lease-related issues. Our goal is to ensure that the renewal process is smooth and that our clients' interests are protected.

Contact our teams now to benefit from their vast experience in providing professional legal services for Commercial Lease Renewal Notice cases to clients throughout the UK.

Additional Information

When should I serve a commercial lease renewal notice?

 

Under UK law, a commercial lease renewal notice should be served at least six months before the end of the lease term. This is to allow sufficient time for negotiations and discussions between the landlord and tenant. It is important to ensure that the notice is served in the correct manner and includes all necessary information, such as the proposed new lease terms and any changes to rent or other conditions.

What are the requirements for a valid commercial lease renewal notice?

 

A valid commercial lease renewal notice must be in writing, specify the date of the notice, identify the property, state the proposed new lease terms, and be served on the tenant at least six months before the end of the current lease term. The notice must also comply with the Landlord and Tenant Act 1954 and any other relevant legislation.

What happens if I don't serve a commercial lease renewal notice?

 

If a tenant fails to serve a commercial lease renewal notice, they will lose their right to renew the lease and will have to vacate the premises at the end of the lease term. The landlord may also be entitled to claim possession of the property and seek damages for any losses incurred as a result of the tenant's failure to comply with the lease terms. It is important for tenants to serve renewal notices in a timely manner to protect their rights and avoid potential legal disputes.

Can I negotiate the terms of a commercial lease renewal?

 

Yes, tenants have the right to negotiate the terms of a commercial lease renewal. The Landlord and Tenant Act 1954 provides tenants with security of tenure and the right to renew their lease. During the renewal process, tenants can negotiate the rent, length of lease, and other terms with their landlord. It is recommended to seek legal advice before entering into negotiations.

What is the process for renewing a commercial lease?

 

The process for renewing a commercial lease involves the tenant serving a notice to the landlord requesting a new lease. The landlord then has two months to respond with a counter-notice, either agreeing to the new lease or proposing different terms. If the parties cannot agree on the terms, they may apply to the court for a determination. If the landlord fails to respond within the two-month period, the tenant may apply for a new lease on the terms set out in their notice.

How long does it take to renew a commercial lease?

 

The length of time it takes to renew a commercial lease can vary depending on the terms of the lease and negotiations between the landlord and tenant. Under UK law, tenants have the right to renew their lease under certain conditions, and the process can take several months to complete. It is recommended to start the renewal process at least six months before the lease expires to allow for sufficient time for negotiations and legal procedures.

Can I terminate a commercial lease during the renewal process?

 

A commercial lease can only be terminated during the renewal process if there is a break clause in the lease agreement that allows for early termination. If there is no break clause, the tenant is obligated to continue with the lease until the end of the renewal period. However, the tenant may be able to negotiate an early termination with the landlord if both parties agree to it.

What are my options if the landlord refuses to renew my commercial lease?

 

If the landlord refuses to renew a commercial lease, the tenant may have the option to negotiate with the landlord for a new lease or seek legal advice to challenge the decision. The tenant may also consider finding a new commercial property to lease. However, the options available will depend on the terms of the lease agreement and the specific circumstances of the situation.

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FAQs

Does my commercial tenant have an automatic right to renew their lease?
 
 

Most leases, unless contracted out, fall within Part II of the Landlord and Tenant Act 1954, which provides business tenants a right to renewal.

You should take legal advice as to whether document / occupation by the tenant is a lease, whether it is contracted and / or whether the circumstances permit you to refuse the tenant a renewal lease.

I have a business lease which is about to expire, does my landlord have to give me a renewal lease?
 
 

Most business tenants have a statutory right to renew, subject to the landlord objecting on certain grounds. The first step is to serve a notice requesting a new lease, which gives the landlord two months to serve a counter-notice citing grounds of refusals.

I have received a section 25 notice refusing me a new lease on ground F – redevelopment. What are my options?
 
 

The first step is to take legal advice as to the validity of the notice. There are strict rules in place regarding the content, timing and service of section 25 notices.

If valid, you have the option of leaving the premises when the notice expires (with statutory compensation) or challenging the landlord's opposition through the courts. The first step to this is the gathering of evidence.

I don’t intend to renew my tenant’s business lease; do I need to pay compensation?
 
 

Only if you are relying on one or more of the compensations / non-fault grounds such as redevelopment and own occupation. If you are able to rely on a fault-based ground such as rent arrears, you can avoid this.

I received a section 26 request for a new lease more than two months ago. Can I now oppose the grant of a new lease?
 
 

No, provided that the section 26 request was validly served. You should take immediate advice as to the validity of the section 26 request. If valid, you must offer the tenant a new lease.

There can, however be negotiations as to the terms of that lease. There is also usually a commercial deal to be done.

My business tenant and I are on amicable terms and have agreed Heads of Terms for a new lease which includes a rent increase. Why should I serve a notice?
 
 

Without the service of a section 25 notice or section 26 request, there is no interim rent period. This means that if there is a delay in the lease being granted (as there often is) the tenant will have no obligation to pay a higher rent in the interim period.

How do we calculate statutory compensation under the 1954 Act?
 
 

Where a tenant has been in occupation under 14 years, the amount is the rateable value of the property. If they have been in occupation over 14 years, the amount is twice the value. The rateable value isn't the same as the payable rates.

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