What You Need To Know About Your Commercial Lease Renewal

As you approach the end of your commercial lease term, you have two choices. You can end the lease and leave the property. Or you can enter into a commercial lease renewal process. This is where you can extend the terms of your lease. In some cases, you may even be able to secure a more favourable lease agreement.

However, a commercial lease renewal often isn’t as simple as you might expect. There are many aspects to the renewal that you need to be aware of before the process starts. That’s what our team of commercial lease solicitors are here for. We can help you through your commercial lease renewal to ensure that you and your business are protected with your best interests at the heart of all negotiations.

You may find that your commercial lease automatically reviews. This will be the case if it is protected under Part II of the Landlord and Tenant Act 1954. It means that the lease will automatically renew as it is, unless either party takes steps to modify or end the tenancy. It’s important to note that not all leases fall under this protection. Therefore, your commercial lease may not automatically renew. Our commercial lease specialists in Peterborough will be able to confirm if your commercial lease falls under this act and protection or not.

The commercial lease renewal process can be instigated by either the landlord or the tenant. However, there are strict guidelines that need to be followed for the procedure. For example, there need to be notices, counter notices and court applications. There are deadlines for all this documentation. If these deadlines are missed the tenant’s right to renew the lease can be lost. Regardless of which party initiate the commercial lease renewal, make sure you are aware of the deadlines and time limits.

Generally speaking, a landlord cannot refuse to renew a commercial lease. However, there are certain situations where they are allowed to. For example, if there has been a failure to repair the premises or repeated non-payment of rent by the tenants. A landlord can refuse the renewal of the lease if they plan to occupy the premises to operate their own business. They can also refuse if they plan to redevelop the property.

Whether you are a tenant or landlord looking to negotiate a commercial lease renewal, our commercial property lawyers in Peterborough are here to help.

As a landlord, you will need to issue a section 25 notice. Within this notice the landlord must state why they plan to object the renewal. It must also include the termination date for the tenancy.

If you are a tenant looking to begin the commercial lease renewal process you must serve a section 26 notice. This needs to state why you want to renew the lease. You should also lay out the proposed terms for the new commercial tenancy agreement.

Seeking legal advice to support you with a commercial lease renewal? Call our commercial property solicitors now. We have many years of experience supporting tenants and landlords with the renewals of commercial leases.